IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE J.B.KOSHY & THE HONOURABLE MR. JUSTICE THOMAS P.JOSEPH TUESDAY, THE 25TH NOVEMBER 2008 / 4TH AGRAHAYANA 1930 MFA.(IP)No. 187 of 2008() --------------------- ORDER IN IA NO.3452/2008 IN OP(IP).2/1989 of I ADDL. DISTRICT COURT, THIRUVANANTHAPURAM. .................... APPELLANT(S): PETITIONERS ------------------------ 1. T.VELAYUDHAN ACHARY, SON OF THANU ACHARI, PARTNER, T.V.R.FUND, KARAMANA, TRIVANDRUM 2. T.RAJAGOPAL, SON OF THANU ACHARI, PARTNER, T.V.R.FUND, KARAMANA, TRIVANDRUM. BY ADV. SRI.SUBHASH CYRIAC RESPONDENT(S): COUNTER PETITIONER --------------------------------- THE OFFICIAL RECEIVER, TRIVANDRUM DISTRICT COURT, THIRUVANANTHAPURAM. ADV. SMT.MUMTAZ SHAMSUDDEEN[CAVEATOR] THIS MISC. FIRST APPEAL HAVING COME UP FOR ADMISSION ON 25/11/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: J.B.KOSHY & THOMAS P. JOSEPH, JJ. -------------------------------------- M.F.A.(IP) No.187 of 2008 -------------------------------------- Dated this the 25th day of November, 2008. JUDGMENT Koshy, J. Appellants are partners of 'TVR Funds, Karamana'. In insolvency proceedings the official receiver conducted sale of 5.73 cents of property in which Ponnammal Complex is situated. Sale was conducted pm 23.6.2008 with the permission of the court after publishing the notice of sale in Mathrubhumi and Malayala Manorama dailies, two daily news papers with large circulation in Kerala State. Ponnammal Complex sold in auction by the official receiver consists of several shop rooms on the ground and first floors. Tenants who occupied the said shop rooms were also permitted to participate in the auction as per common order passed by the court below. Each shop room was auctioned by the official receiver separately. That fact was also published in the auction notice. Official receiver filed I.A.No.2922 of 2008 on 1.7.2008 along with an affidavit stating the auction details of each shop room and the entire Ponnammal Complex was sold by the receiver in auction for a total amount of Rs.55,18,502/-. In the petition the prayer was to pass appropriate orders to receive the balance sale consideration from the successful bidders and to execute sale deeds in favour of them. As per the direction of the court, copy of the petition was given to the appellants' (insolvents) counsel on 9.7.2008 MFA (IP)No.187/2008 2 and a memo was filed to that effect. Case was posted on 11.7.008. On that day there was no representation and no objection was filed and hence the petition filed by the official receiver was allowed. Thereafter I.A.No.3452 of 2008 was filed by the appellants(insolvents) on 29.7.2008 for setting aside the order dated 11.7.2008 passed in I.A.No.2922 of 2008, contending that auction price was very low, reserved price was not fixed and there was no specific mention regarding the ownership of open back yard area above the first floor of the building. The order was passed on 11.7.2008 confirming the sale conducted on 23.6.2008 and permitting the official receiver to receive the balance sale consideration. Court below found that the review petition (I.A.No.3452 of 2008) filed by the appellants was not maintainable. The property was auctioned on 23.6.2008 after complying every step of sale including publication of notice, etc. Report was filed and permission was received from the court below. Reserve price was fixed and no shop room was sold below the reserve price. The appellants(insolvents) were silent till the disposal of I.A.No.2922 of 2008. The terrace portion is the roof portion of first floor which is also auctioned as item No.12. On 23.3.2006 itself the court below permitted to sell 5.73 cents of property in which Ponnammal Complex is situated which consists of 12 shop rooms. In view of the publication of auction notice and in view of the participation the appellants were aware of all these facts. Section 68 of the Insolvency Act enables a person who is aggrieved by the auction conducted by the official receiver to file objection to the same within 21 days from the date of sale. No objection was filed by the appellants in time. Order in I.A.No.2922 of MFA (IP)No.187/2008 3 2008 was passed confirming the sale as no objections were received in time. Even the review petition was filed only after the expiry of said period of 21 days. The court below considered the matter and found that the petition lacks merit. It was also found that review petition was not maintainable. We agree with the views of the court below. Appeal is dismissed. J.B.KOSHY, JUDGE. THOMAS P.JOSEPH, JUDGE. cks