Gujarat High Court
Official Liquidator Of Prime Floor ... vs Rajkot Nagarik Sahakari Bank on 4 December, 2013
Author: R.M.Chhaya
Bench: R.M.Chhaya
OFFICIAL LIQUIDATOR OF PRIME FLOOR TILES PVT LTD (IN LIQN)....Applicant(s)V/SRAJKOT NAGARIK SAHAKARI BANK LTD....Respondent(s) O/OLR/115/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD OFFICIAL LIQUDATOR REPORT NO. 115 of 2013 In OFFICIAL LIQUDATOR REPORT NO. 98 of 2013 In OFFICIAL LIQUDATOR REPORT NO. 56 of 2013 In OFFICIAL LIQUDATOR REPORT NO. 125 of 2012 In OFFICIAL LIQUDATOR REPORT NO. 25 of 2010 ================================================================ OFFICIAL LIQUIDATOR OF PRIME FLOOR TILES PVT LTD (IN LIQN)....Applicant(s) Versus RAJKOT NAGARIK SAHAKARI BANK LTD....Respondent(s) ================================================================ Appearance: MR JS YADAV, ADVOCATE for the Applicant(s) No. 1 OFFICIAL LIQUIDATOR for the PETITIONER(s) No. 1 MR JR SHAH, ADVOCATE for the Respondent(s) No. 1 MR DHAVAL DAVE, SENIOR ADVOCATE with MR JIGAR M PATEL, ADVOCATE for the Intervener ================================================================ CORAM: HONOURABLE MR.JUSTICE R.M.CHHAYA Date : 04/12/2013 ORAL ORDER
Heard Mr. J.S. Yadav, learned advocate for the applicant, Mr. J.R. Shah, learned advocate for the respondent Bank, who is a Secured Creditor of the Company in liquidation named Prime Floor Tiles Pvt. Ltd. and Mr. Dhaval Dave, learned Senior Advocate with Mr. Jigar M. Patel for the intervener who is interested in bid pursuant to the advertisement issued by the Official Liquidator as per the earlier order passed by this Court in Official Liquidator Report No.125 of 2012 dated 24.12.2012.
2. The learned advocates appearing for the parties have submitted that in spite of 4 attempts having been made for sale of the assets belonging to the Company in liquidation situated at revenue survey Nos.101/1 and 101/2 part abutting on National Highway No.8-A (Morbi-Wankaner) at Village Makansar, Taluka District Morbi formerly in Rajkot District, the offer received from the intending purchasers were much below the upset/valuation price. At this stage, it is pertinent to mention that as recorded in the order dated 24.12.2012 and more particularly as mentioned in Para 2 thereof, this Court was pleased to dispose of the report submitted by the Official Liquidator with the following directions:-
4. In view of the averments made in the OLR, it is not advisable to straight way accept the offer made by the intending purchaser to the Bank and therefore the prayers prayed for by the Official Liquidator deserve to be considered. In view of the above, the OLR is accepted.
The Official Liquidator is permitted to give advertisement in two Gujarati Dailies Newspapers viz. Fulchhab and Divya Bhaskar (Rajkot Editions) for purchase of land, building, plant and machineries and all other movable assets of the Company situated at Revenue Survey Nos. 101/1 & 101/2P N.H. 8-A (Morbi-Wankaner), at Makansar, Taluka Morbi, Dist. Rajkot. The upset price would be fixed at Rs.4.70 crores for the entire assets of the Company. The Official Liquidator shall file further report accordingly.
3. By this report, the Official Liquidator has enumerated the facts of the attempts that have been made for disposal of the aforesaid property of the Company in liquidation. The Official Liquidator has further submitted that as per the direction issued by this Court vide order dated 19.6.2013, the Official Liquidator filed further report giving bifurcation of the properties belonging to the Company in liquidation as pointed out in Para 9 of the present report.
4. The Official Liquidator has contended that the meeting of the Sale Committee also consisting of Secured Creditor, namely, respondent Bank came to be convened on 2.9.2013 and accordingly, the Schedule was fixed, whereby it was decided to give advertisement as per the order dated 20.9.2013 in the Gujarati daily, Divya Bhaskar and Sandesh, Ahmedabad and Rajkot editions and also further dates are mentioned. It appears from the further averments made by the Official Liquidator in this report that in compliance with the order dated 20.9.2013, the Official Liquidator issued advertisement in Sandesh and Divya Bhaskar on 16.10.2013 and 17.10.2013 respectively.
5. It is further submitted by the Official Liquidator that pursuant to the said advertisement, only one intending purchaser has responded to the same, namely, Zotto Tiles Pvt. Ltd. which is incidentally represented by learned advocate Mr. Jigar M. Patel today in this report.
6. However, the fact remains that pursuant to the advertisement, only one bidder has come and therefore, this Court is of the opinion that only one offer is no offer in the eye of law, especially when the assets being immovable properties belonging to the Company in liquidation are to be disposed of.
7. At this stage, it may be noted that even earlier the respondent Bank had suggested the name about the intending buyer who was ready to pay Rs.4.70 crores and such a course of action was not approved by this Court.
8. Mr. J.R. Shah, learned advocate for the Secured Creditor as well as Mr. Dhaval Dave, learned Senior Advocate for the intervener are correct in saying that 4 attempts have been made. However, number of attempts would not mean that this Court should not make an attempt to see that the properties fetch the best price and it is evident from the record of this report that as such there is no competition and only one bidder has come.
9. In order to see that the other bidders come, the Official Liquidator is hereby directed to give afresh advertisement in line of the earlier advertisement inviting fresh bids in two daily Gujarati newspapers, namely, Sandesh and Divya Bhaskar , Ahmedabad and Rajkot editions, latest by 23.12.2013. The Official Liquidator shall give time of three weeks in the said advertisement for the intending purchasers to respond to the said advertisement. On suggestion made by Mr. J.R. Shah, learned advocate for the Secured Creditor, a further advertisement may be published by the Official Liquidator in Gujarati daily Akila , noon/evening newspaper published from Rajkot. Mr. J.R. Shah assures this Court that the expenses of this advertisement shall be borne by the respondent Bank.
10. In view of the aforesaid Schedule, therefore, the Official Liquidator is hereby directed to file a further report as regards the response of the advertisement, which shall be given as per the direction issued in this report on or before 27.1.2014. The other Schedule as per the requirement shall be fixed by the Official Liquidator. However, the Official Liquidator shall see to it that the date so fixed for filing the report before this Court i.e. 27.1.2014 is adhered to.
11. The offer which is received by Zotto Tiles Pvt. Ltd. shall be treated by the Official Liquidator as offer even after the fresh advertisement as per this order and the amount of Earnest Money Deposit so received shall be retained by the Official Liquidator and the Official Liquidator shall deposit the same in the Bank.
12. As far as prayer (b), which relates to making of payment to the advertising agency is concerned, the same is granted. So far as prayer (a) is concerned, the same is rejected.
13. With these observations and directions, the report stands disposed of.
(R.M.CHHAYA, J.) mrp Page 7 of 7