Legal Question in Business Law in India

Company in Liquidation

Official Liquidator Mumbai took possesion of the company assets in 1998.May 2002 Reserve Price fixed at Rs. 2,71,15,000/- for factory, machinery & furniture.Have valuation report of 1997.Price of only the factory is Rs. 7.46 crores.Auction took place and only 1 bidder bid above the reserve price at Rs.2,72,00,000/-.On 5/12/02 court confirmed sale unless we deposited Rs. 3 crores within 1 week.On 12/12/02 filed a review petition asking for 2 weeks.Was refused & sale confirmed.Meanwhile had been trying to find a buyer for the property.16/12/02 went in appeal.Buyer presented cheque of Rs.3 crores.Would get pay order if the court ruled in our favour.Bench refused saying that amount was only 10% higher.Liabilities around Rs. 6 crores.Supported by workers.They had buyer for Rs 3.5 crores.Court still refused.Bidders lawyer submitted judgement dated 3/5/02 of the Mumbai High Courtin A.No.293 of 2001 in Notice of Motion No. 1316\99in S. No.3196 of 1998[JT2002(6) SC 386].Would like to know the following:

On what grounds can I appeal?Any case laws which would help me?

Any judgement which which states the interest of the workers and creditors should be looked at?

The factory land is leased by MIDC. Can that help me in anyway?


Asked on 12/21/02, 2:15 pm

1 Answer from Attorneys
Umesh Bhagwat Bhagwat&Co.

Re: Company in Liquidation

Normally once sale is confirmed court cannot set aside the sale unless it can be shown that the sale would be prejudicial to the intrests of the workers and creditors

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Answered on 12/25/02, 12:28 am


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