IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN MONDAY, THE 23RD MARCH 2009 / 2ND CHAITHRA 1931 Co.Appeal.No. 4 of 2009() ------------------------- AGAINST THE JUDGEMENT/ORDER IN CP.34/1998 Dated 19/02/2009 .................... APPELLANT ----------------------------- O.S.ABDULLA, S/O.ABDUL RASHEED, PROPRIETOR, ABDULLA & CO., 21/15, IIND FLOOR, BRETHAPUT ROAD, VEPERY, CHENNAI-7. BY ADV. SRI.RAJESH THOMAS SRI.JIJO JOSEPH RESPONDENT(S): --------------- M/S.LAKSHMI STARCH LTD. (IN LIQUIDATION) REPRESENTED BY THE OFFICIAL LIQUIDATOR, OFFICE OF THE OFFICIAL LIQUIDATOR, HIGH COURT OF KERALA, COMPANY LAW BHAVAN, 3RD FLOOR, B.M.C.,ROAD, THRIKKAKKARA, P.O.KOCHI-21, KERALA. ADV. SRI.K.MONI (OFFICAL LIQUIDATOR). THIS COMPANY APPEAL HAVING COME UP FOR ADMISSION ON 23/03/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & K.SURENDRA MOHAN, JJ. .................................................................... Com. Appeal No.4 of 2009 .................................................................... Dated this the 23rd day of March, 2009. JUDGMENT Ramachandran Nair, J. Appeal is filed only for permission to the appellant to inspect the plant and machinery and movables of the liquidated company kept for sale. We have heard counsel appearing for the appellant and Standing Counsel appearing for the Official Liquidator. Even though appellant has not participated in the tender, the case of the appellant is that the movables of the liquidated company was valued at Rs.6.91 crores and the highest price offered is Rs.2.92 crores and that he will be able to offer a higher price. Counsel for the Official Liquidator submitted that others have also challenged the sale and some have offered upto Rs.3.15 crores for the movables. We are also told that the appellant has not deposited the earnest money deposit or submitted tender and is therefore, not eligible to participate in the tender. We are of the view that the effort of the Official Liquidator is to sell the movables of the liquidated company at the highest price possible to protect the interest 2 of the creditors and shareholders. Therefore, what is important is not technical legal compliance in the procedure for sale, but to ensure that even belated participants are allowed to offer for the movables and that maximum price is realised for the movables of the liquidated company. We are sure the Company Court will keep in mind the offers made by others who have challenged the sale at Rs.2.92 crores and if necessary, the Official Liquidator should be permitted to negotiate with those who have made fresh offers. In this view of the matter, we feel giving an opportunity to the appellant also may advance the chances of getting a higher sale price, more so because sale is not so far confirmed by the Company Court. However, considering the expenses required for arranging to depute an Officer by the Official Liquidator to a far away place at Hyderabad and other expenses to be incurred by the Official Liquidator, we feel an inspection facility can be granted to the appellant only on condition of his meeting cost, which we estimate at Rs.25,000/-. Therefore, we allow the appeal by vacating the order of the Company Court with direction to the Official Liquidator to permit the appellant to inspect the movables of the liquidated company on 3 deposit of Rs.25,000/- with the Official Liquidator. Inspection will be arranged at the earliest after deposit of the amount with the Official Liquidator. The Official Liquidator is given freedom to utilise the amount for arranging inspection and if any balance is left, the same will be utilised in terms of orders of the Company Court. After deposit of the amount, the appellant can contact the office of the Official Liquidator so that a suitable date is fixed for early inspection and after inspection, the appellant can approach the Company Court with his offers to be considered along with other claimants. The Company Appeal is disposed of as above. C.N.RAMACHANDRAN NAIR Judge K.SURENDRA MOHAN Judge pms