Madhya Pradesh High Court
M/S.J.C.Mills Ltd. vs B.I.F.R. on 12 May, 2015
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Company Petition No.4/1997
M/s Jiwaji Rao Cotton Mills Ltd.
Vs.
Board of Industrial and Financial Reconstruction New
Delhi.
07/05/2015
Parties through their respective counsel.
Shri Arvind Agrawal submits that he has filed two IAs.
Let copy of the same be given to Shri J.D.Suryavanshi.
Response, if any, be filed within three weeks.
Shri U.K.Bohre Advocate appears in support of IA No.
2498/2014. Shri J.D.Suryavanshi, Advocate undertakes to file
response to this IA within three weeks.
Shri A.K.Jain, Advocate appears in support of IA No.
3743/2011.
Shri Mahesh Goyal, Advocate for representative union
prays for and is granted last chance of three weeks to file
response to this IA, failing which right to file reply shall stand
forfeited.
Shri A.S.Rathore, Advocate appears in support of IAs
No. 4630/12 and 1016/2014. Response, if any, be filed by
OL within three weeks.
Shri Sanjay Kumar Sharma, Advocate appears in
support of IAs No. 6421/2014 , 6422/2014, 6423/2014 and
6425/2014. He undertakes to supply copy of these IAs to Shri
R.K.Goyal by tomorrow. Response, if any, be filed within
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three weeks.
Shri Mahesh Goyal Advocate appears in support of IA
No. 4616/2014. Shri Goyal is directed to supply another copy
of OL by tomorrow. Response to this IA, if any, be filed by OL
within three weeks.
O.L.R.No. 1/2015 is taken up.
Shri K.N.Gupta, Senior Advocate with Shri
J.D.Suryavanshi, Advocate and Mr. Sahu, OL.
Shri Akshay Sapre, Advocate for Grasim Industries Ltd.
Arguments heard.
Reserved for orders on this OLR.
(Sujoy Paul)
Judge
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Company Petition No.4/1997
M/s Jiwaji Rao Cotton Mills Ltd.
Vs.
Board of Industrial and Financial Reconstruction New
Delhi.
/05/2015
O.L.R.No. 1/2015.
Shri K.N.Gupta, Senior Advocate with Shri
J.D.Suryavanshi, Advocate and Mr. Sahu, OL.
Shri Akshay Sapre, Advocate for Grasim Industries Ltd
In this application, it is contended that this Court passed an
order dated 10.12.2014 in OLR No. 1/2014 and permitted the
OL to get the subject property, i.e., flat situated at 3rd Floor,
"Industry House", 10, Camac Street, Kolkatta (W.B.)
(hereinafter referred as Kolkatta property) revalued by a
competent valuer and then fix a date for further sale
proceedings for the same as well as to take appropriate steps
to fix the next meeting for negotiations/sale after getting the
valuation done. It is stated that in obedience of said order of
this Court for the purpose of Kolkatta property, Shri Samar
Banerjee was appointed as valuer on a fixed professional
fees. The valuation report dated 9.2.2015 is filed as Annexure
'A'. It is further stated that after receiving the valuation report
from the valuer, a letter dated 10.2.2015 was issued to both
the contending bidders M/s Grasim Industries Ltd., Mumbai
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and M/s R.N. Landcon Pvt. Ltd., Delhi to remain present for
participation in the fresh negotiation to be held on 3.3.2015 in
the office of OL. A letter dated 10.2.2015 was simultaneously
issued to Asset Sale Committee members to attend the
meeting on the said date. These letters are filed as
Annexure 'B'. It is urged that pursuant to order dated
10.2.2015, both the bidders aforesaid attended the
negotiations held on 3.3.2015 at 11-30 AM in the office of OL.
Shri K.N.Gupta, learned senior counsel submits that on
3.3.2015 before starting the negotiation, the valuation report
of said valuer was opened before the Asset Sale Committee.
On the basis of valuation report, the market value of Kolkatta
Property is shown as Rs.11,19,00,000/-, out of which the
proportionate present market value of said property is
Rs.8,39,09,282/- (rounded as Rs.8.38 crores). After due
delebrations, the Asset Sale Committee fixed the reserved
price less than 20% of the present market value given in the
valuation report which comes to Rs. 6.71 crores. It is
unanimously decided that the offer of Kolkatta property to be
fetched for negotiations should be over and above of the said
reserve price of Rs. 6.71 crores.
Both the bidders attended the negotiations. It is agreed
between both the bidders and Asset Sale Committee that 25%
of bid amount will be deposited within 15 days from the date
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of bidding, i.e., on or before 18.3.2015 with the OL. If the
highest bidder fails to deposit 25% of bid amount on or before
18.3.2015, the second bidder will be finalized without giving
any further opportunity to the highest bidder. It is mentioned
in the application that after making due formalities, the
negotiation was started among the aforesaid parties. In the
negotiation after 12 rounds of bid, the Asset Sale Committee
had received the highest offer of Rs. 7.16 crores from M/s
Grasim Industries Ltd. Mumbai. M/s R.N. Landcon Pvt. Ltd.
Delhi has given their offer of Rs. 7.11 crore. The said
company requested the Asset Sales Committee for giving one
month time to increase their offer. This request was not
accepted by the Committee. The bidding process was
accordingly closed by accepting the highest offer of M/s
Grasim Industries Ltd., Mumbai. A copy of the minutes are
filed as Annexure 'C'. The Asset Committee accepted the
highest offer of M/s Grasim Industries Ltd., Mumbai and
requested the OL to submit the report containing the said
information before this Court. It is stated that M/s Grasim
Industries Ltd. Mumbai has already deposited the requisite
amount. In the aforesaid factual backdrop, it is prayed that
the report be taken on record. In view of acceptance of
highest offer by Asset Sales Committee and subsequent
deposit of requisite amount, the necessary orders be passed
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to approve highest offer of M/s Grasim Industries Ltd.,
Mumbai. It is further prayed that 30 days time from the date
of approval be given as per terms and conditions of the sale.
It is prayed that the sale of Kolkatta property be confirmed in
favour of M/s Grasim Industries Ltd. Mumbai for Rs.
7,16,00,000/- subject to deposit of balance sale consideration
within a period of 30 days from the date of passing of the
order. Permission is prayed for by the OL to handover those
Kolkatta property to the successful purchaser after receipt of
entire sale consideration. The permission is prayed to release
the amount of Rs. 60,000/- to the valuer/ Chartered Engineer,
Kolkatta for valuation of Kolkatta property.
I have heard the learned counsel for the parties.
No counsel appearing in the matter has taken any
objection. I have perused the annexed documents. I am
satisfied with the procedure adopted by the respondents. I
am also satisfied with the amount fixed and accordingly I deem it proper to allow the prayer made in the present OLR. However, it is made clear that the OL shall ensure that the earlier order dated 10.12.2014 with regard to adjustments of amount is made applicable. The relevant portion reads as under:-
"Thus, it will be equitable to hold that interest earned on the basic amount shall form part of the principal amount for the purpose of 7 sale. Needless to mention that parties are bound by interim order of Supreme Court dated 06.11.2009 (mentioned in para 5 of this order)."
Considering the aforesaid, the prayer made in the OLR is allowed. The time prayed for in the said application is fixed as 30 days from the date of pronouncement of this order.
(Sujoy Paul) Judge vv