THE HON'BLE MR JUSTICE G.V.SEETHAPATHY COMPANY APPLICATION No :296 of 2010 DATED:19-07-2010 ORDER: This application is filed under Rule 9 of the Companies (Courts) Rules, 1959 for a direction that the sale conducted by the Official Liquidator in respect of the land admeasuring Ac.0.36 guntas in Sy.No.276 of Malkapur village, Choutuppal, Nalgonda District, is null and void; and consequently to direct the Official Liquidator to return the entire consideration of Rs.6,50,000/- with interest. 2. Heard both sides. Perused the records. 3. Learned counsel representing the Official Liquidator filed a report in O.L.R.No.2591 of 2010. 4. The applicant is the successful bidder in respect of the sale of an extent of Ac.0.36 guntas in Sy.No.276 of Malkapur village, conducted on 29-10-2003. He deposited the entire sale consideration of Rs.6,50,000/- for the said extent of land by way of Demand Drafts and obtained receipt, dated 11-03-2009. Subsequently, the Official Liquidator addressed a letter, dated 11-03-2009, to the Tahsildar, Choutuppal to arrange a survey for the purpose of identifying and demarcating the boundaries for the said extent of Ac.0.36 guntas. The Deputy Surveyor, attached to Choutuppal mandal, carried out the survey and demarcated the extent of Ac.0.36 guntas, fixed the boundaries and prepared a tounch plan and the possession of the land was handed over to the applicant. The applicant fixed the boundary stones and got the extent fenced off. It is stated that some employees of M/s BBR Estates, claiming to have purchased the land in Sy.No.276, destroyed the fencing as well as the boundary stones claiming that the entire land belongs to them. The applicant approached the Official Liquidator and the Official Liquidator addressed a letter, dated 26- 03-2009, to the Tahsildar, Choutuppal mandal stating that the boundaries fixed by the Deputy Surveyor did not match with the land sold by the Official Liquidator. It is further stated that the land was being related to link document No.885/97 and subsequently, it was found that it relates to the link document No.1594/97. Bids were called for as if the land covered by link document No.885/97 was available for sale. It is alleged that subsequently, the Official Liquidator changed the stand and started claiming that the land of Ac.0.36 guntas in Sy.No.276 is covered by link document No.1594/97 and not document No.885/97. The entire exercise of conducting the auction/ sale in respect of Ac.0.36 guntas of land in Sy.No.276 therefore became futile, as no such land existed on ground. The applicant therefore prays that the sale of the extent of Ac.0.36 guntas in Sy.No.276 be set aside and the sale price of Rs.6,50,000/- paid by the applicant be returned. 5. The Official Liquidator in his report, O.L.R.No.2591/2010 stated that an application in C.A.No.923 of 2008 was filed seeking permission to sell the extent of Ac.0.36 guntas in Sy.No.276 belonging to the company in liquidation and the same was allowed by order, dated 16-12-2008. Notice of sale was published in newspapers on 31-12-2008. A letter was addressed to the Tahsildar, Choutuppal mandal to depute a Surveyor to identify the land to enable the intending purchasers to inspect the same. The Surveyor identified the land as per the records and showed the same to the officials of the Official Liquidator. However, he did not fix the boundaries and did not also prepare the rough sketch. The sale was conducted and the applicant became the highest bidder offering Rs.6,50,000/-. The said offer was accepted and the applicant paid the entire sale consideration. On 11-03-2009, the Official Liquidator addressed a letter to the Tahsildar, Choutuppal mandal, to arrange demarcation of the land by fixing the boundaries and hand over the same to the applicant. The Surveyor demarcated the land and handed over the possession thereof to the applicant. It is further stated in the said report that it was noticed that the land surveyed by the Surveyor does not match with the land sold. As there was no response from the Tahsildar to the letter addressed by the Official Liquidator, C.A.No.1078 of 2009 was filed seeking direction to identify and demarcate the company’s land of Ac.0.36 guntas. By order, dated 28-10-2009, this Court directed the Tahsildar, Choutuppal mandal to complete the survey. The Deputy Surveyor surveyed the land and fixed the boundaries by duly conducting a panchanama. 6. Learned counsel representing the Official Liquidator states that the land was sold as demarcated and identified by the Surveyor, deputed by the Tahsildar, and as the said land is now stated to have been purchased by M/s BBR Estates, a fresh survey may be directed to be conducted by the Tahsildlar, Choutuppal mandal to correctly identify the land. 7. In the circumstances, it is considered that the sale of Ac.0.36 guntas in Sy.No.276 conducted by the Official Liquidator proved to be an exercise in futility as the land, as demarcated by the Surveyor, did not match with the land sold or covered by the relevant link document. The applicant, who is a third party of the purchaser, cannot therefore be made to suffer any loss on account of putting for sale a land which did not actually exist or which is not duly identified with reference to the revenue records and the link documents. The sale held on 29-10-2003 in favour of the applicant in respect of the extent of Ac.0.36 guntas in Sy.No.276 of Choutuppal is therefore liable to be set aside and is accordingly set aside with a direction to the Official Liquidator to return the amount of Rs.6,50,000/- paid by the applicant towards sale price. It is open to the Official Liquidator representing the company in liquidation to file appropriate application, impleading the Mandal Revenue Officer, Choutuppal and M/s BBR Estates seeking resurvey of the land for properly identifying the same on the ground to be taken up before it can be put to sale. 8. Accordingly, Company Application is allowed. _______________________ G.V.SEETHAPATHY,J 19h July, 2010. Tsy