1 CRR230.10.sxw JPP IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COURT RECEIVER’S REPORT NO. 230 OF 2010 IN SUIT NO. 3636 OF 1999 ICICI Bank Limited. ... Plaintiffs. V/s. Pal Peugot Limited and Anr. ... Defendants. Mr. Sachin Chandarana i/b. Manilal Kher Ambalal for the Plaintiffs. Mr. Aspi Chinoy for the Highest Bidder. Mr. Jitendra Shukla i/b. M/s. G.H. Shukla & Co. for the Employees Union. Ms. Azmin Irani i/b. Official Liquidator, High Court, Bombay. Mr. R.R. Bhosale for Govt. Mr. G.G. Ketkar, 1st Asstt. to C.R. CORAM : R.Y. GANOO, J. DATED : 24th FEBRUARY 2011. P.C. :- The Property of Pal Peugot Ltd. divided into two parts i.e. property part “A” and property part “B” were put up for auction. M/s. Metropolitan Infrahousing Private Limited were termed as Highest Bidders and an order in respect of property part “A” was passed by this Court on 21st January 2011. 2 CRR230.10.sxw 2. Property part “B” was also put up for sale by public auction. Bidders had participated in the auction and bid put up by M/s. Metropolitan Infrahousing Pvt. Ltd. (hereinafter referred to as the said Company) for Rs.32.00 crores turned out to be the highest bid. The Court had reserved a particular price for the said property “B”. Since the bid put up by the Highest Bidder was at Rs.32.00 crores, I had verified the reserve price and it so turned out that the bid amount was far less than the reserve price. The matter was adjourned for few days. Ultimately, learned Senior Counsel Mr. Aspi Chinoy on behalf of said Company. submitted that if his clients are in a position to match the reserve price, his clients may think of offering to purchase the property for an amount little more than reserve price. Looking to the fact that the bid amount was far below the reserve price and no other bidders were looking to purchase the property part “B” and the fact that substantial dues of various creditors are required to be paid, the suggestion given by learned Senior Counsel Mr. Aspi Chinoy was considered by me. I thought it fit to disclose the reserve price to enable the said Company to make up their mind and inform the Court. Accordingly, on the last occasion the reserve price of Rs.125.00 crores was informed to the learned Senior Counsel Mr. Aspi Chinoy in the open Court. This was of course done on the background that other bidders had withdrawn from the ring and therefore, only party who could increase the bid was said Company. The matter was posted today to know from learned Counsel Mr. Aspi Chinoy 3 CRR230.10.sxw about the willingness on behalf of said Company to increase their bid and make it little more than the reserve price. 3. The Court was informed by learned Counsel Mr. Bhosale for State of Maharashtra that the State of Maharashtra is interested in raising a demand qua property part “B” on the principles of unearned income as the said property falls in the category class II occupancy land. 4. In so far as the question of payment of monies towards un-earned income if said Company is treated as highest bidder and an order accordingly is passed in their favour and if the State of Maharashtra raises the demand towards un- earned income, said Company will have to deal with that demand in accordance with the provisions of law. The said demand proceedings will be a different subject matter to be attended to by both the parties in accordance with the provisions of law. 5. After the aforesaid order was passed, learned Senior Counsel Mr. Aspi Chinoy, upon instructions from Mr. Dinesh Patel, Director of said Company who is present in the Court informed the Court that his clients are prepared to increase the bid from Rs.125,00,00,000/- to Rs. 125,01,00,000/-. He also stated that if any demand is raised by the Government of Maharashtra towards un-earned income, his clients shall deal with the said demand in accordance with the provisions of law. 4 CRR230.10.sxw 6. In view of the above discussion, following order is passed :- (i) The bid put up by M/s. Metropolitan Infrahousing Pvt. Ltd. to the tune of Rs.125,01,00,000/- for purchase of property part “B” is accepted. Accordingly, it is hereby ordered that M/s. Metropolitan Infrahousing Pvt. Ltd. are treated as the successful bidder for property at part “B” for an amount of Rs.125,01,00,000/-. (ii)The Official Liquidator to calculate the set off amount as per the terms of the decree dated 4th December 2006. The Liquidator shall communicate the said figure to the Court Receiver. The Court Receiver shall accordingly inform M/s. Metropolitan Infrahousing Pvt. Ltd. to deposit in the Office of Court Receiver the appropriate amount. The exercise of communicating to the Receiver the amount by the Official Liquidator shall be completed within a period of four weeks from today. Accordingly, the Official Liquidator shall communicate the figure on or before 24th March 2011 to the Receiver. Immediately, the Receiver will call upon M/s. Metropolitan Infrahousing Pvt. Ltd. to deposit appropriate amount within four weeks from the receipt of the letter of the Court Receiver. After the amount is received, the Receiver should go ahead with the execution of the sale deed in favour of M/s. Metropolitan Infrahousing Pvt. Ltd. concerning property part “B”. 5 CRR230.10.sxw (iii)The Receiver and the sale proceeds received by him will not be liable for the payment of any liabilities/dues. If the State of Maharashtra is interested in raising the demand towards un-earned income, they shall raise the demand on M/s. Metropolitan Infrahousing Pvt. Ltd. Upon raising of the said demand. M/s. Metropolitan Infrahousing Pvt. Ltd. shall deal with the demand in accordance with the provisions of law. (iv)The Court is informed that the Sub-Divisional Officer at Thane has passed an order declaring part “B” property as Class II occupancy land. That order is challenged by the Official Liquidator by filing an Appeal against the said order before the Deputy Collector. That Appeal is pending. Liberty is granted to M/s. Metropolitan Infrahousing Pvt. Ltd. to make an application for joining in the said Appeal proceedings if M/s. Metropolitan Infrahousing Pvt. Ltd. desire to do so. If that application is filed, that application shall be disposed of by the concerned Appellate Authority in accordance with provisions of law. (v)Now, that M/s. Metropolitan Infrahousing Pvt. Ltd. are accepted as the highest bidder, they have substantial interest in the said property. They would be interested in protecting the property. Hence, in the first place, the Court Receiver shall permit the Officers of M/s. 6 CRR230.10.sxw Metropolitan Infrahousing Pvt. Ltd. alongwith their security agency to conduct the survey of the property and decide as to what arrangements are required to protect the property. After M/s. Metropolitan Infrahousing Pvt. Ltd. conducts the survey, they would be able to appoint their own security guards. After the guards appointed by M/s. Metropolitan Infrahousing Pvt. Ltd. start protecting the property, the guards appointed by the Court Receiver shall be removed from the site. It is clarified that guarding of property by M/s. Metropolitan Infrahousing Pvt. Ltd. by itself does not mean that the possession of the property is handed over to M/s. Metropolitan Infrahousing Pvt. Ltd. Possession shall be handed over at the time of execution of the sale deed. (vi) The Court Receiver’s Report stands disposed of in above terms. If any clarification is required, parties are free to move the Court. (R.Y. GANOO, J.)