Telangana High Court
Official Liquidator Of M/S. Godavari ... vs No on 8 January, 2025
THE HON'BLE JUSTICE MOUSHUMI BHATTACHARYA
I.A.No.1 of 2024 IN COMPA.No.9 of 2024
AND
COMPA.No.9 of 2024 IN R.C.C.No2 of 2013
Sri Srinadh Reddy, learned counsel for the Official Liquidator.
ORDER:
This Application is filed under Sections 457(1)(c) of The Companies Act, 1956 read with Rules 9 and 11(b) of The Companies (Court) Rules, 1959 for the following reliefs:
i. Permit the Official Liquidator to sell the assets/properties of the Company-in-Liquidation in two (2) lots through e-auction on "As is Where is and Whatsoever there is basis" by fixing the EMD @ 10% of Reserve Price and incremental bid amount as decided in the Asset Sale Committee meeting held on 24.12.2024 as tabled in the affidavit filed along with this application being Lot Nos.1 to 2 and after e-auction of the said assets/properties, necessary permission may be granted to Sale Committee Comprising of the Official Liquidator and other officers/officials of the Official Liquidator's office herein to have negotiations with three (3) highest bidders who participated in the e-auction to fetch maximum sale price.
ii. Permit the Official Liquidator to sell the assets/properties of the company (in liquidation) through e-auction service provider viz. M/s.Rail Tel Corporation of India Limited or M/s.e- Procurement Technologies Ltd (auction Tiger.net) or such agency as this Hon'ble Court may deem fit and proper in this regard and to release the service charges to e-auction service provider from the Estate and Establishment Fund account subject to recouping the same on realization of the 2 assets/properties since the Company-in-Liquidation has no funds.
iii. Consider and approve the draft e-auction Sale Notice and Terms and Conditions for sale of above assets/properties of the Company-in-Liquidation in two (2) lots which are annexed vide Annexure-B;
iv. Permit the Official Liquidator to publish e-auction Sale Notice for sale of above assets/properties in three news papers namely (i) 'Economic Times', English Daily, all India editions,
(ii) 'Namaste Telangana', Telugu Daily all editions, covering Telangana and (iii) 'Andhra Jyothi' Telugu Daily all editions, covering Andhra Pradesh or any other newspapers as may be decided by this Hon'ble Court at DAVP / Government rates as this Office is a Central Government office attached to Hon'ble High Court of Telangana & Andhra Pradesh and also permit the Official Liquidator to incur publication charges from the Estate and Establishment Fund account subject to recouping the same on realization of the assets/properties since the Company-in-Liquidation has no funds.
v. Permit the Official Liquidator to fix and receive Rs.2,000/- (Non refundable & non adjustable) towards participation fee for each Lot.
vi. Permit the Official Liquidator to return the EMD amount to the unsuccessful bidders after retaining the EMD amount of 1st, 2nd and 3rd highest bidders of both lots who participated in the e-auction till confirmation of sale by this Hon'ble Court and deposit of balance sale consideration by the Successful/High bidder.
vii. Permit the Official Liquidator to amend/alter/modify the sale notice to be displayed on web portal as per the procedure/ norms of the e-auction service provider.
3viii. Order the costs of this application to be incurred the Estate and Establishment Fund since the Company-in-Liquidation has no funds.
2. Heard Sri J.Srinadh Reddy, learned Standing Counsel for the Official Liquidator, and perused the record.
3. Learned counsel for the Official Liquidator submits that this Court, by order dated 14.09.2015 in RCC.No.2 of 2013, ordered winding up of the Company i.e. M/s.Godavari Plywood Ltd., (Company-in-Liquidation).
4. Learned counsel for the Official Liquidation further submits that this Court, by order dated 18.11.2023 in C.A.No.166 of 2023, permitted the Official Liquidator to sell the assets of the Company- in-Liquidation as per valuation report submitted by the Er.Badam Sundara Rao, Sundar Associates.
5. Learned counsel for the Official Liquidator further submits that though as per the valuation report, the Company-in- Liquidation is having a total of Ac.15-14 cents of land available for sale.
6. So far as the plant and machinery is concerned, it is submitted that as per the Asset Sale Committee meeting held on 24.12.2024, the realisable value of plant and machinery was 4 decided to be 85% of the Fair Market Value. Thus, the realizable value of plant and machinery is Rs.35 lakhs.
7. Finally, it is submitted that permission may be accorded to sell the assets/properties of the Company-in-Liquidation by dividing them into two (2) lots in the manner agreed by the Asset Sale Committee meeting held on 24.12.2024.
8. Having regard to the facts and circumstances of the case, the Official Liquidator is permitted to sell the assets/properties of the Company-in-Liquidation in two (2) lots (Lot Nos.1 and 2) through e-auction on "As is Where is and Whatsoever there is basis" by fixing the reserve price for each lot and the reserve price as EMD and incremental bid amount as decided in the Asset Sale Committee meeting held on 24.12.2024, as detailed in the affidavit annexed to this application. The draft e-auction sale notice and terms and conditions for sale of the above assets/properties as appended to the present application is approved.
9. The Official Liquidator is permitted to publish e-auction sale notice for sale of above assets/properties of the Company-in- Liquidation in (i) 'Economic Times', English Daily, all India editions, (ii) 'Namaste Telangana', Telugu Daily, all editions covering Telangana and (iii) 'Andhra Jyothi' Telugu Daily, all editions covering Andhra Pradesh and incur the publication charges from and out of the funds available account of the 5 Company-in-Liquidation. The other incidental prayers in connection with cost of the application and any miscellaneous expenses may be permitted to be met out by the Official Liquidator from the available funds of Estate and Establishment Fund account as set-out in the application is also granted.
10. Accordingly, this application is ordered. There shall be no order as to costs.
__________________________________ MOUSHUMI BHATTACHARYA, J January 08, 2024 BMS