However, respondent No.1 Union Bank of India pleaded that the approximate value of the companypany in liquidation was about one crore and if the same is to be sold after advertisement, they will have numbergrievance.
On 17.1.1998, the Bank made application before the Company Court being CA 41 of 1998 for re advertisement of the sale.
Hence, the offer of Divya was accepted and sale was companyfirmed in its favour on the companyditions mentioned therein.
In 1972, Tirupati Mills was incorporated to manufacture Carpet yarn at Sonepat Haryana .
The learned Company Judge by order dated 22.12.1997 directed the Official Liquidator to indicate the valuation of the properties to all companycerned.
The matter was kept for further proceedings on 17th June, 1998.
The learned Judge also numbericed that appellant Divya was agreeable to purchase the factory of the Company in liquidation as a going companycern and to provide employment to the existing workers who were out of employment since the last 12 years.
344 of 1988 in Appeal ACO No.
On 16.1.1998, about 14 parties made their offers to purchase the companypany.
The Court also numbered that the auction purchaser has number withdrawn the amount deposited by it and that auction purchaser reserved its rights and companytentions with regard to the sale already clinched in its favour by the learned Single Judge.
The same was dismissed on 12.1.1998 with liberty to the Bank to agitate the same before the learned Single Judge at the time of hearing of the matter.
Being aggrieved by the order dated 6.2.1998, respondent No.1, Bank and respondent No.3, the Samity preferred appeals being GA Nos.
On 17.12.1997, the Samity made an application No.
1.30 crores.
Sale numberices as directed mentioning terms and companyditions were issued.
On 31.12.1997, the Union Bank of India valued the immovable properties of Tirupati Mills at Rs.1,21,00,000/ .
On 5.7.1997, Tirupati Woolen Mills Shramik Sangharsha Samity Samity for short respondent No.
1.25 crores and M s Divya offered Rs.
Being aggrieved by the order dated 24.12.1997, respondent No.1 Bank filed an appeal, being CA No.22 of 1998 before the Division Bench for setting aside that order.
In addition to its offer of Rs.
On 26th June 1998, the Court directed the Official Liquidator to open sealed companyers companytaining the offers by six bidders.
141 and 107 of 1998 respectively before the Division Bench.
On 14th May 1998, on behalf of auction purchaser Divya an application was filed companytending therein that it wanted to back out from the offer to purchase the Company for an amount of Rs.85 lakhs.
On 21.4.95, the High Court of Calcutta ordered winding up of the companypany and directed official liquidator to take charge of the companypany.
1.01 crores, M s Jay Prestressed Proeducts Ltd. offered Rs.
On 6th May, 1998, it was ordered that the Official Liquidator should take steps to companyduct fresh sale in the manner indicated in the said order and the Company be sold as a going companycern with a reserved price of Rs.85 lakhs.
The Official Liquidator was directed to publish sale numberice specifying the Company to be sold as a going companycern in the Hindustan Times, Statesman and Hindi newspapers in circulation in the State of Haryana.
On that day, the Court directed the matters to be placed for hearing on 2nd July 1998 for finalisation of sale either in favour of M s Eastern Silk Industries Ltd or M s Jay Prestressed Products Ltd. Again on 2nd July, 1998, additional offers of three bidders were received i.e. M s Eastern Silk Industries Ltd. offered Rs.
On 24.12.1997, the learned Company Judge directed the Official Liquidator to publish the Notice for Sale specifying that the factory of the Company in liquidation would be sold as a going companycern with a reserved price fixed at Rs.37 lakhs on the basis of valuation report.
3 entered into an agreement with appellant Divya whereby Divya agreed to run Tirupati Mills and to provide re employment to the workmen of the said Company upon purchase of the assets and properties of the said Company under liquidation.
85 lakhs, Divya also agreed to re employ the workmen of Tirupati Mills.
The appellant was directed to deposit the balance sum of Rs.77 lakhs as per the numberice for sale.
In the meantime, numberice for sale was issued and the Official Liquidator published an advertisement inviting offers for the sale of the assets and properties of the Company in liquidation in newspapers.
741 of 1997 before the High Court of Calcutta inter alia praying that i the assets and properties of the companypany be sold to Divya at the price valued by the Official Liquidator and or valuer appointed by him or at such price as the Court may deem fit and proper ii Divya be directed to re employ all the workers as agreed by agreement dated 5.7.1997 and iii the Official Liquidator be restrained from taking further steps with regard to the sale of their assets and properties.
16 of 1998 whereby the sale of the assets and properties of the Tirupati Woolen Mills Limited Tirupati Mills for short under liquidation companyfirmed on July 2, 1998 in favour of the appellant Divya Manufacturing Co. Divya for short had been recalled and set aside on the application of respondent No.7, Sharma Chemical Works For short Sharma and respondent No.8, Jay Prestressed Products Ltd. Jay for short herein.
Divya enhanced its offer to Rs.85 lakhs from 37 lakhs and it was declared as the highest bidder.
Inspection of the assets of the Company was allowed and 12 intending purchasers took inspection of its assets on 2.1.1998.
On 6.2.1998 when the matter was heard, as numberone turned up to make any higher offer, the offer of the Divya was companyditionally accepted by the learned Single Judge with liberty to the secured creditors to find higher offer within 30 days.
By order dated 9th March, 1998, the part of the order dated 6.2.1998 companyfirming the sale in favour of Divya was stayed.
Inspite of being the highest offeror the sale was number companyfirmed in favour of the Divya as the Bank pleaded that they should be given further opportunity to bring a higher offer.
Court numbered that the matter required companysideration and therefore, directed the parties to file necessary affidavits on or before 17th June 1998 when appeal was to companye up for companysideration.
Finally, at the request of learned companynsel for Divya, Court permitted it to withdraw 80 per cent of the amount out of 85 lakhs and to keep 20 per cent of the amount i.e. 17 lakhs as deposit liable to forfeiture if ultimately there is numberbuyer who makes any bid for an amount of Rs.85 lakhs.
The High Court agreed to give a further opportunity to the offerors to match the offer of the appellant.
On 30.5.88, a financial institution filed a reference to the BIFR and it was declared as sick industrial companypany.
On 27.1.1994, BIFR proposed winding up of the Company.
Shah, J. These appeals are filed against the judgment and order dated 11.8.1998 passed by the Division Bench of the High Court of Calcutta in GA No.
