Gujarat High Court
Gujarat State Financial Corporation vs Mandvi Spinning Mills Ltd (In ... on 14 July, 2010
Author: K.A.Puj
Bench: K.A.Puj
COMA/185/2010 1/5 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
COMPANY APPLICATION No. 185 of 2010
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GUJARAT STATE FINANCIAL CORPORATION - Applicant
Versus
MANDVI SPINNING MILLS LTD (IN LIQUIDATION) & 1 -
Respondents
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Appearance :
MR HS MUNSHAW for Applicant.
MR MRUGESH JANI FOR OFFICIAL LIQUIDATOR.
None for Respondent No. 2.
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CORAM : HONOURABLE MR.JUSTICE K.A.PUJ
Date : 14/07/2010
ORAL ORDER
1. The applicant, namely, Gujarat State Financial Corporation, has taken out this Judge's Summons praying for the direction to the Official Liquidator to constitute Sale Committee and to work as a convener of Sale Committee for the purpose of taking necessary action for sale of free hold plot of the land bearing Revenue Survey No.368 (Paiki) of Village Moshakha, Tal. Mandvi, Dist. Kutch along with factory building and superstructure of the respondent Company in liquidation, which are charged with the applicant.
COMA/185/2010 2/5 ORDER
2. An affidavit is filed by Mr. V. N. Raval, Manager (Law) of the applicant Corporation. Mr. H. S. Munshaw, learned advocate appearing for the applicant has submitted that the applicant Corporation has sanctioned a loan of Rs.23,75,000/- to the respondent Company on 29.03.1974 and additional loan of Rs.4,65,219/- on 30.09.1978. Thus, the applicant Corporation has disbursed in aggregate a sum of Rs.28,38,919/- to the Company in liquidation. Since the Company failed to repay the amount, the applicant Corporation has taken action under Section 29 of the State Financial Corporation Act, 1951 and the possession of the undertaking was taken by the Corporation. Thereafter, winding up petition was filed against the Company and the winding up order was passed by this Court on 21.01.1985. It appears that in the past, an attempt was made to sell the property of the Company in liquidation. However, no fruitful result was achieved. Even in 1997, one more attempt was made for sale of the property. However, no progress COMA/185/2010 3/5 ORDER was made. The applicant Corporation on its own made an attempt for sale of the properties through auction by way of publishing advertisement on 20.11.2006 and one offer made by Mr. Bhupendrasinh Rathod for an amount of Rs.3.21 Crores was accepted by the applicant Corporation. That was also not materialized. Then the applicant Corporation has obtained the Valuation Report from GITCO valuing the property at Rs.9,69,45,000/-. The said Valuation Report is attached along with this application. The applicant Corporation has now moved the present application seeking direction to the Official Liquidator to constitute the Sale Committee and take appropriate action for sale of the property.
3. A copy of this report is given to the Official Liquidator. Mr. Mrugesh Jani, learned advocate appearing for the Official Liquidator has submitted that after constituting the Committee, necessary steps would be taken by the Sale Committee for sale of the property in question.
COMA/185/2010 4/5 ORDER
4. The applicant Corporation has joined Dena Bank as a party who is also a Secured Creditor. Hence, the Official Liquidator is appointed as convener of the Sale Committee and GSFC as well as Dena Bank are the members of the Sale Committee. The Official Liquidator is directed to examine and find out as to whether any other Creditor is there. If it is so, necessary intimation be given to the said Creditor. The Sale Committee meeting should be called for immediately and on the basis of the Valuation report, the upset price should be fixed and necessary public advertisement be issued in two newspapers, one in Gujarati and other one in English daily calling for the offers from the intending purchasers. After receipt of the offers, necessary auction be held amongst the bidders and report for confirmation should be filed before this Court.
5. Since the matter is very old, prompt actions should be taken in the matter. The Official Liquidator is further directed to examine as to whether any other COMA/185/2010 5/5 ORDER assets of the Company is there and whether the statement of affairs is filed by the Ex-Directors of the Company or whether any action is taken for non- filing of such statements. Necessary report should be filed separately indicating the present state of affairs of the Company in liquidation.
6. With this direction, this application is accordingly disposed off.
Sd/-
[K. A. PUJ, J.] Savariya