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Showing contexts for: Conversion fee in Karan Gambhir vs Sajeve Bhushan Deora & Ors on 17 August, 2020Matching Fragments
12. It is further submitted on behalf of the Appellants that the valuation reports although records that the land has been put to industrial use but completely overlook the fact that the Reserve price (Rs. 52.58 Crores) and the Circle Rate of the land (Rs. 99 Crores) is a whopping Rs. 46 Crores. The Financial Creditor (Respondent No. 2) valued the land in question at a Reserve price of Rs. 80 Crores when it sought to sell the land under SARFAESI Proceedings. In the valuation reports there is a reference to commercial use of land in question, however, there is nobody's case that the land in question is a commercial in nature. It is wrongly noticed conversion fees Rs. 100 - 110 Crores is required to be paid to convert the land to industrial use. Actually, such fees is required to be paid for conversion of land to commercial use. Thus, the valuation reports are wrong and have to be set aside.
38. We have also observed that the Learned Counsel for the Appellants have not pointed out that the findings arrived at by the Ld. Adjudicating Authority are erroneous or incorrect.
39. The Appellants have prayed that Sale Notice dated 15.05.2019 be set aside because it does not contain the proper valuation of the land in question and in the notice wrongly mentioned that conversion fees for the land in question to industrial use is Rs. 110 Crores.
40. We have considered the submissions. As we have held that there is no defect in the valuation reports and reports are as per the Rules. In the Sale Notice dated 15.05.2019 all material facts are disclosed. In the Sale Notice terms and conditions are mentioned condition No. 12 & 13 are as under:-
All demands, whether outstanding or payable in relation to subject land and building, will be the liability of successful bidder."
Company Appeal (AT) (Insolvency) No. 1420 & 1430 of 2020 In the notice, it is nowhere mentioned that the conversion fees for the land in question to industrial use is Rs. 110 crores.
41. We are of the view that in the Sale Notice nothing is mentioned which prejudices the prudent bidder for bidding. It is pertinent to note that the Ld. Adjudicating Authority while deciding the objections granted an opportunity to the Appellant, to produce any person who is prepared to purchase the land in question at price higher than the Reserve price. He may also file his bid before the Liquidator before the closing date. In terms and conditions of the direction the Appellant was not able to produce any bidder with better price. The land in question was earlier put to e-auction during Liquidation in March, 2019 with Reserve price of Rs. 52.83 Crores and no bid was received even at a Reserve price and the Applicant had failed to identify any bidder/buyer whatsoever, inspite of opportunity given vide order dated 08.04.2019 passed in CA No. 501 (PB)/2019.