Kerala High Court
Kerala Financial Corporation vs M/S.Alwaye Fertilizers Industries ... on 26 April, 2023
A.MUHAMED MUSTAQUE , J.
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Co. Pet. No. 11 of 2001 & Co.Appl. Nos. 569/2004, 456/2005,
457/2005, 381/2006, 153/2009 & R.P. No.1218/2008
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Dated this the 26th day of April, 2023
ORDER
These company applications and petitions are pending for a long time. After hearing both Counsels this Court is of the view that these matters can be disposed of with the certain directions. These matters are pertaining to Alwaye Fertilizers Industries Ltd. One of the issues now remaining to be resolved is in regard to the sale of the plant and machineries of the company, invoking revenue revenue recovery proceedings, for the amount due to KFC. The sale has been set aside noting that the sale was conducted beyond 30 days. The auction purchaser now demands refund of the amount deposited.
2. The learned Standing Counsel for KFC submits that revenue recovery commission will have to be paid by the auction purchaser. It is further stated that certain machineries and plants have been removed by the auction purchaser based on the sale and they can only demand balance of the amount after defraying the cost of machineries and plant removed by the auction purchaser. The learned Counsel for the company submits that the experts had valued the machineries and plant. Co. Pet. No. 11 of 2001 & Co.Appl. Nos. 569/2004, 456/2005, 457/2005, 381/2006, 153/2009 & R.P. No.1218/2008 2
3. That be so, there is no difficulty for the KFC to pay the balance amount after defraying the cost of the plant and machineries removed by the auction purchaser. The valuation report is on board in CA. No.625/2004. The KFC can obtain that valuation report from the Registry.
4. In regard to commission charge payable to the revenue authorities, I am of the view that no commission charge is payable to revenue authority for conducting sale beyond 30 days which is found to be illegal by this Court.
5. KFC shall take a decision after adverting to the expert valuation report within a period of six weeks from the date of receipt of a copy of this judgment and refund whatever amount due to the auction purchaser without any delay. If the auction purchaser is aggrieved by such decision of the KFC, auction purchaser is given liberty to challenge the same in accordance with law.
6. In view of the fact that the loanee company has settled the entire dues to all the financial institutions, the title deeds and any other documents shall be returned to loanee without any delay.
7. The review petition filed by KFC to review the order setting aside the sale, according to me is unsustainable in as much as the sale is found to be illegal in accordance with the provisions Co. Pet. No. 11 of 2001 & Co.Appl. Nos. 569/2004, 456/2005, 457/2005, 381/2006, 153/2009 & R.P. No.1218/2008 3 of Revenue Recovery Act, it is admittedly conducted after a period of 30 days. It is accordingly dismissed.
All the company petitions and applications are disposed of as above.
Sd/-
A.MUHAMED MUSTAQUE JUDGE sbk/-