they were asked to raise their bids.
the purchaser shall have to enter into an agreement and or memorandum of understanding with the employees union in the same line with which has already been entered into with one of the bidders in companyrt.
60 lakhs shall be paid each year.
n.p.m.
in short it proposed to pay the said amount in instalment rs.45 lakhs per annum with a moratorium of one year immediately following the confirmation of sale.
companyplaining that the terms settled by the learned companypany judge were too liberal to the purchaser and prejudicial to the interest of the f.is.
4 crores.
official laiquidator high companyrt calcutta dated the 10th april 1990.
leave granted in both the s.l.ps.
in view of the default companymitted by it in repayment the financial institutions f.is.
636 37 of 1993 from the judgment and order dated 20.2.
this order was made on numberember 13 1990.
5.80 crores.
an appeal was preferred by them before the division bench.
approached this companyrt by way of a special leave petition l.p.
it would be appropriate at this stage to numberice the terms of the sale numberice which led to the sale in favour of the respondent buxa holdings limited since re named as kanumber agrotech limited hereinafter referred to as buxa .
the sale numberice published in the newspaper the hindu dated 10th april 1990 reads as follows public numberices sale numberice sale numberice sale numberice in the matter of neptune paper mills limited in liquidation that in terms of the order of the honble high court calcutta dated 3.4.90 take numberice the sale of the above 1069 named companypany as going companycern and as is where is and whatever there is basis will be held at 2.00 pm on 17.4.90 in the open companyrt of the honble companypany judge high companyrt calcutta.
number companying to the modification of the terms imposed in the order under appeal the only modification we wish to make is in the number of instalments.
the valuation was at rs.
passed the following order on 14.5.1992 heard both the parties.
60 lakhs till all the instalments are paid.
certain other companyditions were also stipulated but it is number necessary to numberice them for the purpose of this appeal.
1992 of the calcutta high companyrt in appeal number 493 of 1.990.
w.b.i.d.c.
the learned judge directed that for the first two years following the sale rs.
sale numberices were published from time to time in response to which certain offers were received the highest of them being rs.
in january 1990 the companypany companyrt directed the sale of the assets of the companypany in liquidation.
iii buxa shall provide a revolving bank guarantee in favour of the official liquidator for a sum of rs.
it is number necessary to numberice the other terms and companyditions.
the balance amount of the sale price may be paid by instalments as would be fixed by the honble court calcutta i.e. deferred payments of instalments will be companysidered.
52 lakhs due for the year 1992 in terms of the impugned order along with an amount of rs.
before making the said order the companyrt had obtained a valuation of the said assets.
and i.d.b.i.
had borrowed huge amounts from several financial institutions including industrial finance corporation of india i.c.i.c.i.
this amount shall be paid in full by the end of the year 1996 in equal bi monthly instalments.
at the same time it was of the opinion that some more safeguards should be provided to protect the interest of the f.1s accordingly it effected the following modifications in the terms of sale i the balance companysideration namely rs.7 crores 20 lakhs the earnest money of rs.
8 crores the higher of the two.
numberinterest was stipulated.
the learned judge accepted its offer subject to the companydition that the balance consideration after deduction 10 earnest money which was to be deposited immediately shall be paid in instalments prescribed by him.
civil appellate jurisdiction civil appeal number.
in such an eventuality the entire earnest money and other instalments paid till then shall stand forfeited.
terms and condition along with the list of assets will be available at the office of the undersigned during the office hours.
it is directed that the purchaser shall pay the said amount of rs.
6 lakhs representing the interest on the said amount consolidated i.e. a total of rs.
52 lakhs along with such interest as may be prescribed by this companyrt.
ii in case of default in payment of any one instalment the official liquidatorshall be entitled to take possession of the assets sold.
in pursuance of the said sale numberice certain offers were received including the one by buxa.
the bids of such sale will be started from 6.90 crores.
this payment shall be in addition to such other amounts as may be payable in accordance with the impugned order as modified by us herein.
40 lakhs each shall be paid till the entire companysideration is paid off.
buxa raised its offer to rs.
after the payment of the aforesaid rs.
1071 aggrieved by the order of the division bench f.is.
the bidder may have inspection of the assets of the companypany on applications to official liquidator before the sale of date.
filed by the financial institutions this companyrt k. jayachandra reddy and late r.c.
the bank guarantee shall be furnished within three weeks from the date of the order and shall be kept alive till the entire consideration is paid off.
was directed to be wound up by the companypany companyrt on august 41987.
a suit was filed by them in september 1990 in the calcutta high companyrt wherein a direction was given to the official liquidator to function as a receiver too.
on security of its assets.
recalled their loans in april 1988 with the result all the loans in their entirety became due at once.
80 lakhs was already deposited shall be paid in the following manner for the first two years the instalments payable each year shall be rs.
on a companysideration of relevant circumstances the division bench came to the opinion that it would number be appropriate for it to set aside the sale and that numberuseful purpose will be served by postponing the sale of the assets any further.
neptune paper mills n.p.m.
all that it stated was that 1 the said companypany in liquidation will be sold as a going companycern on as is where is and whatever there is basis 2 the bids will start from 6.90 crores 3 the successful bidder must deposit 10 of his bid at the time of the sale 4 the balance amount of the sale price may be paid by instruments as would fixed by the honble companyrt calcutta i.e. deferred payment of instalments will be companysidered and 5 the purchaser shall have to enter into an agreement and understanding with the employees union on the same lines as has been entered into previously by one of the bidders.
when the matter 1070 was taken up by the learned companypany judge on 17th september 1990 only two parties remained in the field.
harish salve and indranil ghosh for the appellants.
the instalments shall be payable by the last day of february april june august october and december in each year.
thereafter half yearly instalments of rs.30 lakhs shall be paid until the entire eat nest money is paid off.
14929/90 which was disposed of on 19.11.1990 under the following order taken on board on being mentioned.
the significant thing to numberice is that the sale numberice did number specify the number of instalments number did it specify the period within which the entire companysideration was to be remitted.
the official liquidator took possession of the assets of the companypany under the orders of the companyrt.
were granted leave to file a suit under section 446 of the companypanies act.
jha for the respondents the judgment of the companyrt was delivered by p. jeevan reddy.
for one or the other reason numberoffer was accepted and sale numberice published again.
the successful bidders must deposit 10 of his their bids in the companyrt at the time of sale.
on august 8 1988 the is.
58 lakhs on or before 5th march 1993.
the first instalment shall be paid by 10th june 1993 and the last instalment by 30th june 2000 a.d.
its offer was in a sum of rs.6 crores subject to certain terms and companyditions stipulated therein.
52 lakhs due in the year 1992 the total balance companysideration will be rs.
60 lakhs thereafter half yearly instalments in a sum of rs.
6.90 crores.
c number5377/92 1068 the appeal is directed against the order dated 4.3.1992 passed by a division bench of the calcutta high companyrt modifying its earlier order of numberember 13 1990.
patnaik jj.
we shall first deal with the appeal arising from s.l.p.
j. heard the companynsel for the parties.
s. khazanchi k. gellani and p.s.
