CO APPL 20/09 [1] IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JAIPUR BENCH S.B. Company Application No.20/09 In S.B. Company Petition No.04/99 The Official Liquidator of M/s Lath Steels Pvt. Ltd. DATE OF ORDER : 11/03/2010 HON'BLE MR. JUSTICE AJAY RASTOGI Mr. B.K. Sharma, for applicant Mr. Shiv Garg, for respondent *** Application has been filed by Official Liquidator seeking orders from this Court for acceptance of highest bid offered by Chechani Trading Co., Ahmedabad for a sum of Rs.4,59,81,000/- for entire unit [land ad- measuring 10,000 sq. mtrs.] belonging to M/s.Lath Steels Pvt. Ltd. [in liquidation] subject to the terms and conditions of the sale was ordered to be wound up by the High Court, Jaipur Bench, Jaipur on 17th October, 2003 in Company Petition No.04/1999 and O.L. was appointed as its liquidator in compliance of the order of this Court. The Official Liquidator took possession of the unit from RIICO on 7th February, 2007 and after seeking approval from this Court on 25th July, 2008 tender notices were published in Rajasthan Patrika [Hindi] all Editions in Rajasthan and Times of India [English] all Editions from 26th July, 2008 to 27th July, 2008 respectively and after providing inspection of the entire unit of the above named Company in CO APPL 20/09 [2] liquidation to the intending purchasers. The sealed tenders were received in the office of O.L. on 25th August, 2008, which was opened on 26th August, 2008 at 11 AM in the presence of Secured Creditor i.e. RIICO. As per Valuation Report Fair Market Value of Land & Building, Plant & Machinery including misc. fixed assets etc. of the above named Company in liquidation as on 24th December, 2007 was Rs.509.23 lacs and the market realisable value of the aforesaid property was Rs.356.46 lacs. But, at the same time, the distress sale value of the Land & Building, Plant & Machinery as per report was Rs.318.87 lacs. The photo copy of valuation report dt.6th January, 2008 has been placed on record as Ann.B. The inter se bidding held in the office of O.L. on 26th August, 2008 where M/s. Chechani Trading Co., Ahmedabad made highest bid of Rs.4,59,81,000/-. At one time, Company Judge considered appropriate to call bidders for negotiation and accordingly, all the bidders who participated, were invited for negotiation in the office of O.L. on 1st October, 2009. Even after negotiation, bidders were not interested to enhance the bid amount and even M/s.Chechani Trading Co., Ahmedabad being highest bidder, was also not inclined to increase the bid amount. CO APPL 20/09 [3] Notesheet has been placed on record before this Court dt.1st October, 2009. 25% of the offer made by the bidder was deposited by the tenderer on 25th August, 2008. Taking note of consent of secured creditor i.e. RIICO and also process adopted by O.L., valuation report of the approved valuer, this Court considers it appropriate to accept the highest bid offered by Chechani Trading Co., Ahmedabad. Accordingly, its bid stands accepted. The Official Liquidator may proceed in terms of conditions of tender notice in accordance with law. With these directions, application stands disposed of. [AJAY RASTOGI], J. FRBOHRA20COAPPL09 11-03.doc