THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDYw3 Company Application No.1686 of 2011 in Company Petition No.96 of 2006 Date:26th December, 2011 Between: Datla Venkata Krishnam Raju S/o.Subba Raju & Anr. …Applicants A n d M/s.Sri Vijetha Horticulture (India) Ltd. (In provisional liquidation), rep. by the Official Liquidator, High Court of A.P., Hyderabad, East Wing, Gagan Vihar, Nampally, Hyderabad & Anr. ….Respondents *** THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.1686 of 2011 in Company Petition No.96 of 2006 ORDER: This Company Application has been taken out by Datla Venkata Krishnam Raju and Datla Meher Kumari under Rule 9 of the Companies (Court) Rules, 1959, seeking a direction to the Official Liquidator to accept the price offered by them in respect of Ac.4.01 cents in Survey No.27, and Ac.15.97 cents in Survey No.29/2, 30, 28/1 and 26 situated in L.Krishnapuram Village, Madugula Mandal, Visakhapatnam District. 2. By an order, dated 04.12.2006, passed in Company Petition No.96 of 2006, this Court directed winding up of M/s.Sri Vijetha Horticulture (India) Limited (in liquidation). By virtue of rules under Section 449 of the Companies Act, 1956, the Official Liquidator became its liquidator and he has taken possession of various assets of the company (in liquidation). An attempt has been made to put on sale the various assets of the company (in liquidation). In spite of the notice of publication of sale in leading newspapers on 12.12.2006 and 13.12.2006, there was no response for purchase of lands. This Court, by order, dated 31.03.2009, passed in Company Application No.218 of 2009, fixed the up-set price of the lands admeasuring Ac.20.07 cents at Rs.60,00,000/- and permitted the official liquidator to sell the tender forms by collecting a sum of Rs.1,000/- from the prospective purchasers. The relevant portion of the order, dated 31.03.2009, passed in Company Application No.218 of 2009, is to be noted and it is thus: “Since the lands are fairly valuable and also well-maintained by the company under liquidation, and since valuable plantation such as teak, casurina and cashew are standing thereon, I consider it appropriate to confirm the upset price as Rs.1.5 crores for Acs.75.31 cents of land situate at Shankaram Village and Rs.60 lacs for Ac.20.07 cents of land situate at L.Ponnavolu Village, while approving the terms and conditions, which are enclosed, subject to which the properties may be auctioned by inviting bids. However, I consider it appropriate to direct the Official Liquidator to incorporate in the sale notification an additional term leaving the choice for the bidders, who propose to buy the entire extent or any lesser extent for proportionate value. Hence, the Official Liquidator may indicate the minimum upset price as Rs.2 lacs per acre for the lands situate at Shankaram Village and Rs.3. lacs per acre for the lands situate at L.Ponnavolu Village. The Official Liquidator is permitted to sell the tender forms by collecting a sum of Rs.1,000/- from the prospective purchasers. The Official Liquidator is permitted to open the sealed tenders and also conduct an inter se bidding/negotiations with the bidders. The Official Liquidator is permitted to publish the sale notification in “Eenadu” and “Sakshi” Telugu daily newspapers, having circulation in Visakhapatnam District. He is permitted to incur the necessary expenditure towards advertisement charges from out of the funds available with the company. The Official Liquidator is also permitted to advertise for two consecutive days on the electronic media of Tv5 and Tv9. The Official Liquidator is also permitted to put up vinyl boards at prominent places, so as to attract the attention of the prospective purchasers. Let there be a clear gap of 15 days from the date of publication for receipt of the sealed bids.” The Official Liquidator published the notice of sale in “Eenadu” and “Sakshi” Telugu daily newspapers of Visakhapatnam Editions on 11.04.2009 and 12.04.2009 respectively. Further advertisement of sale has been caused in electronic media i.e., Tv9 on 12.04.2009 and 13.04.2009 and Tv5 on 13.04.2009 and 14.04.2009 on two consecutive days. The Official Liquidator could not sale the above lands due to non-receipt of valuable offers. This Court, by order, dated 30.08.2010, directed the Official Liquidator to advice the ex-Chairman and Managing Director of the Company (in liquidation) to bring the parties for purchase of assets. In pursuance of the said order, the Official Liquidator addressed a letter, dated 07.09.2010 to the Ex-Chairman and Managing Director of the Company (in liquidation). In response to the above, D.Satyanarayana, Ex- Chairman and Managing Director of the Company (in liquidation), informed the Official Liquidator under letter, dated 15.11.2010, that the price fixed by this Court is on high side and hence, none showed interest to purchase the lands. On 11.11.2011 the Official Liquidator received a letter along with Bankers Cheque bearing No.510201, dated 10.11.2011, for Rs.6,10,000/- from Sri Datla Venkata Krishnam Raju and Smt.Datla Meher Kumari, (the applicants herein) residents of Ramaraopeta, Kakinada, East Godavari District and they expressed their interest to purchase the land admeasuring Ac.20.07 cents comprising Survey Nos.27, 29/2, 30, 28/1, 26 together with teak trees, red sandal wood trees, mangeum trees, survy trees, situated at Lova Krishnapuram Village, Madugula Mandal, Visakhapatnam District, for an amount of Rs.61,00,000/-. This application has been moved by the afore said two offerers seeking a direction to the Official Liquidator to accept their offer. 3. On 25.11.2011, this Court directed the Official Liquidator to notify the offer made by the applicants, by way of publication in “Andhra Jyothi” (Telugu daily Newspaper) and “The Indian Express” (English daily newspaper) of Visakhapatnam Editions. Accordingly, the Official Liquidator took out publication and filed copies of publication as proof. None appeared to resist the application. 4. The 2nd respondent, who is the Ex-Chairman and Managing Director of Company (in liquidation) filed counter affidavit reporting no objection to accept the offer given by the applicants for purchase of land admeasuring Ac.4.01 cents situated in Survey No.27 and Ac.15.97 cents in S.Nos.29/2, 30, 28/1 and 26 in L.Krishnapuram Village, Madugula Mandal, Visakhapatnam District. 5. As could be seen from the material placed on record, the Official Liquidator made efforts more than twice to sell the land in question. But, no offers are received by him. The applicants offered Rs.61,00,000/- for the entire extent of Ac.20.07 cents. As per the report of the Official Liquidator, there are teak trees, red sandel trees, mangeum trees, survy trees etc. situated in the land in question. 6. Having considered the facts and circumstances, I am of the view that the instant application can be considered subject to the applicants raising their offer from Rs.61,00,000/- to Rs.75,00,000/-. 7. Accordingly, the Company Application is ordered accepting the offer of the applicants provided that they increase the same to Rs.75,00,000/-. The applicants have paid Rs.6,10,000/- and the they shall pay the balance amount of Rs.68,90,000/- within two months. No costs. _____________________ B.SESHASAYANA REDDY, J Date: 26th December, 2011. cs THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.1686 of 2011 in Company Petition No.96 of 2006 Date:26th December, 2011