1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY: NAGPUR BENCH AT NAGPUR C.A.W. NO. 223 /2011 WRIT PETITION NO.629/2007 MAH. STATE COOPERATIVE BANK ..VS.. STATE OF MAH AND OTHERS - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Office Notes, Office Memoranda of Coram, Court's or Judge's orders appearances, Court's orders of directions and Registrar's orders - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - CORAM : SMT. VASANTI A. NAIK, J. D A T E : MARCH 29, 2011. Since all the parties have principally agreed that it was necessary to sell the property belonging to the respondent no.3 society for clearing the dues of the creditors, this court had by the order dated 25.11.2008, directed the respondent no.3 to complete the exercise of selling the property. Before the order dated 25.11.2008 was passed, a committee was appointed by this court to fix the upset price of the various properties. Presently, were are concerned with the property at Gandhibag which comprises of a plot and a building. The committee appointed by this court fixed the upset price of the Gandhibag property on 11.11.2008 at Rs.7,48,00,000/-. Thereafter, since the property did not fetch the upset price inspite of the fact that it was put to auction on a couple of occasions, the committee revised the upset price on 4.12.2009 at Rs.7,29,20,000/-, however, it was not possible to sell the property at the newly fixed upset price of Rs.7,29,00,000/- also. It is in this background that this court 2 by the order dated 8.3.2010, fixed the upset price of the property at Gandhibag at Rs.5,36,04,000/-. After the upset price was fixed by the order dated 8.3.2010, by this court the property of Gandhibag was again put to auction and the highest bid was tendered by one Goenka Jewels and Diamonds. Since M/s Ramratan Sarda stated before this court that he was ready to give a higher bid this court sent the matter to the Registrar for negotiation. In the negotiation M/s Goenka Jewels and Diamonds raised its bid to Rs.6,33,50,000/-. Ramratan Sarda applied for withdrawal of the amount deposited before this court as their bid was lower than the bid of Rs.6,33,50,000/-, at the time of negotiation . The proposed intervenor in C.A.No.223/2011 M/s Goenka Jewels and Diamonds has sought the acceptance of the highest bid of Rs.6,33,50,000/- for the property at Gandhibag. It is stated on behalf of the official liquidator by learned counsel Shri Meghe that the upset price of the property fixed in the year 2008 and 2009 by the committee was more than the highest bid submitted by M/s Goenka Jewels and Diamonds and since the market value of the property has increased, even after 8.3.2010, this court may not accept the bid of M/s Goenka Jewels & Diamonds Shri Sundaram, the learned counsel for the respondent no.2, the Provident Fund Authority and Shri Samarth the 3 learned counsel for the petitioner – bank have no objection for acceptance of the bid of M/s Goenka Jewels and Diamonds The respondent no.1 -State has nothing to say in the matter. Considering the facts and circumstances of the case, and mainly the fact that the dues of the creditors are to be cleared and the properties were tried to be sold on a number of occasions during the period of three years, but at no point of time the property at Gandhibag could fetch a bid to the extent of Rs.6,33,50,000/- it is necessary to accept the bid of M/s Goenka Jewels and Diamonds It is necessary to note that this court had by the order dated 8.3.2010, fixed the upset price of the property at Gandhibag by taking mean of the valuation of the properties at Rs.5,36,04,000-. The bid of M/s Goenka Jewels & Diamonds is clearly above the upset price fixed by this court at Rs.5,36,04,000/-. In the facts and circumstances of the case, since the property could not fetch anything more than the bid which is offered by M/s Goenka Jewels & Diamonds during the past three years and since issuance of directions for fresh auction for the property would be an unending process, it is necessary to accept the bid of M/s Goenka Jewels and Diamonds. Hence the civil application no.223/2011 is allowed to the extent of permitting the applicant M/s Goenka Jewels & Diamonds to intervene in the matter and confirming the sale 4 in its favour. The bid of the applicant in C.A.W.No.223/2011 is accepted in the facts and circumstances of the case. The applicant M/s Goenka Jewels & Dimonds is directed to deposit the balance amount in this court within a period of two weeks. After the amount is deposited the property at Gandhibag should be sold in favour of M/s Goenka Jewels & Diamonds and the liquidator should take necessary steps for getting the sale in favour of M/s Goenka Jewels & Diamonds, confirmed. The civil application is allowed in the aforesaid terms and disposed of. JUDGE SMP