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TMI Blog2012 (9) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... st the order of the learned Single Judge in dismissing the applications filed by the appellant, to wit Mettur Textiles Mill Quarters Residents Welfare Society, on the ground that the appellant/society has been whiling away its time from 2009 when an advertisement was issued for sale of properties of the company under liquidation relating to Item No.7 comprising of 33.03 Acres of land and has approached the Court belatedly when the sale was confirmed by the Company Court in favour of the second respondent, being the highest bidder, for a sale consideration of Rs. 12,50,00,000/-. 2.1. Succinctly put, the facts leading to the filing of these appeals are that the Mettur Textiles Industries Limited, which has been wound up, was taken over by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id property, to wit 33 Acres of land situated at Mettur Dam, Salem District, for sale in future, and these applications came to be dismissed by the learned Judge under the impugned order, as stated above. 3. The Official Liquidator has filed his report. In the report, he has clearly stated that the bidding was effected in the Court and even though the upset price was fixed at Rs. 6,11,64,000/-, various people participated and ultimately the second respondent has raised the bid to Rs. 12.50 Crores and the Court has declared the second respondent as the highest bidder and confirmed the sale in its favour. The Official Liquidator has also stated that around 3000 claims have been received from the creditors of the company under liquidation and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tself shows that the attitude of the appellant is not bona fide. 6. Further, as submitted by the learned counsel for the second respondent, there have been various contradictions regarding the number of members of the appellant/society. The contention of the learned Senior Counsel appearing for the appellant that the members of the appellant/society, who are erstwhile employees, are numbering 919, is basically contradictory to the stand taken by the appellant/society itself on different occasions. In the affidavit filed by the appellant in support of the above said applications, the appellant has stated that it has got 87 members in its association. However, in the grounds of appeals filed before this Court, the appellant has chosen to sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egularity or the sale is effected against the provisions of the Companies Act or the Rules framed thereunder. On the factual matrix, it is not the case of the appellant that there has been any irregularity or the sale has been effected in gross violation of the provisions of the Companies Act. The only argument put forth by the learned Senior Counsel appearing for the appellant is that the appellant/ society is now prepared to enhance the bid amount to Rs. 15 Crores and a qualification is made by the learned Senior Counsel stating that the society is prepared to purchase the entire 33.03 Acres of land for Rs. 15 Crores or 8 Acres of land, which is stated to be the portion to which they are entitled to, for a proportionate amount fixed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is the son of one of the ex-directors of the company under liquidation and he participated in the auction, questioned the valuation, and also non payment of earnest money deposit by the other side and raised his bid and it was in those circumstances on the factual matrix the Division Bench of this Court has come to the conclusion that there is irregularity in the conduct of the sale by the Company Court and the Division Bench has interfered. But that is not at all the issue in this case. 11. The further reliance placed by the learned Senior Counsel for the appellant on the judgment of the Supreme Court in FCS Software Solutions Ltd v. La Medical Devices Limited and others, (2008) 10 SCC 440 is also not applicable to the facts of the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme has also referred to another judgment in Divya Manufacturing Company (P) Ltd. v. Union Bank of India and others, (2000) 6 SCC 69, by enumerating in paragraph (34) as under: "34. In Divya Manufacturing Co. (P) Ltd. v. Union Bank of India, (2000) 6 SCC 69, this Court held that even a confirmed sale can be set aside. In that case, the highest bid by a party was accepted by the Court and the sale was confirmed, but before possession was delivered to the auction-purchaser and the execution of the sale deed, other parties offered much higher price. The High Court required the subsequent bidders to deposit an amount of 25% which was done. Considering the facts in their entirety, the High Court set aside the confirmation of past highest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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