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Andhra Pradesh High Court - Amravati

M/Sj. Sree Pujitha Chit Fund P Ltd In Liqn vs Nil on 18 April, 2024

                HIGH COURT OF ANDHRA PRADESH
MAIN CASE NO: COMP.A.No.9 of 2022                                               13
                           PROCEEDING SHEET

Sl.                                                                           OFFICE
        Date                            ORDER
No.                                                                            NOTE

14    18.04.2024

BSB, J The Official Liquidator(OL) filed the report and sought the following permissions:

i) to return the EMD amount of Rs.13,26,000/- to M/s, Siva Shakthi Automobiles, Rep. by Mr. Sunkara Ratnakar as they have not submitted any bid within the schedule time mentioned in sale notice.
ii) permit the Official Liquidator to pay Rs.3,000/-

+ GST towards fees for unsuccessful auction to M/s. e- Procurement Technologies Limited as per terms and conditions finalized in Assets Sale Committee meeting.

iii) permit the Official Liquidator to file I.A. in the present C.A.No.9/2022 for conducting fresh e- auction of such assets of the company (In Liqn) by reducing the Reserve Price after holding Assets Sale Committee meeting shortly.

The OL stated that according to the direction of High Court of Telangana, the OL made publication of the proposed sale by e-auction through various news papers and that e-auction was conducted through the service provider M/s.E-Procurement Technologies Ltd., It is further stated that M/s.Siva Shakthi Automobiles, represted by Mr.Sunkara Ratnakar deposited EMD amount of Rs.13,26,000/- (Rupees Thirteen Lakhs Twenty Six Thousand only) and since no bid has been received, e-auction was not 2 COMPA.No.9 of 2022 conducted on 15.03.2024, however, in case of 18.04.2024 unsuccessful auction, an amount of Rs.3,000/- + GST per property/per item would be charged by the service provider. Thus, the above reliefs are sought.

As per the terms of the auction, if the highest offerer in the auction shall not be eligible to withdraw his/her offer. In case, highest offerer wants to withdraw from the bid, EMD amount deposited with Official Liquidator will be forfeited and he/she shall not claim such EMD from Official Liquidator office in future.

Hence there is no bar to refund the EMD. Under the above circumstances the Official Liquidator is permitted to

i) to return the EMD amount of Rs.13,26,000/- to M/s, Siva Shakthi Automobiles, Rep. by Mr. Sunkara Ratnakar as they have not submitted any bid within the schedule time mentioned in sale notice.

ii) to pay Rs.3,000/- + GST towards fees for unsuccessful auction to M/s. e- Procurement Technologies Limited as per terms and conditions finalized in Assets Sale Committee meeting.

iii) to file I.A. in the present C.A.No.9/2022 for conducting fresh e-auction of such assets of the company (in liquidation) by reducing the Reserve Price after holding Assets Sale Committee meeting shortly.

Post on 02.05.2024.

__________________ B.S.BHANUMATHI,J NSM