HIGH COURT OF JUDICATURE AT ALLAHABAD ?In Chamber Case :- COMPANY PETITION No. - 29 of 1995 Petitioner :- In The Matter Of M/S Seema Ice & Cold Storage P. Ltd. Respondent :- Bank Of Baroda & Others Counsel for Petitioner :- L.P. Singh,A.K. Gupta,I.P. Singh,Maneesh Mehrotra,Manish Goyal,O.L.S.K. Saxena,O.L.U.S.Patole,R.K. Upadhyay,R.K.Upadhyay,Rajeev Mishra,Sheel Ojha,Shiv Sagar Singh,Sikandar B. Kochar,Swapnil Kumar,V.K. Mishra Counsel for Respondent :- Mukesh Prasad,A.K. Narayana,Arnab Banerji,Ateeq Ahmad Khan,Dhruva Narayana,H. Upadhyay,K.S. Chaudhary,O.L. O.P. Sharma,Pradeep Kumar,Ravindra Singh,S.K. Gupta,S.N. Tiwari,Santosh Kumar Srivastava,Shubham Agarwal Hon'ble Yashwant Varma,J.
The Official Liquidator has filed a reply dated 24.4.2015 informing the Court that the highest bidder in whose favour the sale has been confirmed by this Court had defaulted in payment of entire bid amount. It was submitted that against the bid of Rs.7 crores, till date the bidder had only deposited a sum of Rs. 1.78 crores. When this matter was taken up today, Sri S.D. Singh, learned Senior Counsel assisted by Sri Sheel Ojha appeared for the highest bidder and submitted that the default had taken place due to unforeseen circumstances and that there was no intention of the highest bidder of reneging from its commitment. Sri Singh submits that the total balance of Rs.5.22 crores in the shape of bank drafts has already been prepared and is ready to be handed over to the Official Liquidator subject to the delay in the deposit thereof being condoned by this Court. The Official Liquidator, on the other hand and in terms of the prayers carried in his reply has prayed for forfeiture.
Having heard the learned counsel for parties, this Court finds that the terms and conditions of the bid itself provided for leeway in the matter of deposit of the bid amount. Apart from prescribing the initial period for deposit to be 30 days from the acceptance of bid, the tender document carried a further clause of the remaining amount being deposited within another 30 days without interest or within 120 days from the date of acceptance of the bid along with interest on 18% per annum. The tender condition did not stop at this. Even after expiry of this 120 days period further discretion was conferred upon the Court to condone the delay which may be larger in span of time than 120 days. The condition of deposit within the time prescribed was not an inviolable condition. Considering the amount of time and effort spent in finalising the sale of the assets of the Company in Liquidation coupled with the fact that Sri Singh has produced in Chambers the drafts for the entire balance amount of Rs.5.22 crores, in the opinion of this Court, forfeiture and annulment of all proceedings which have taken place till now would clearly be harsh and unjust.
Accordingly, the delay in depositing the amount is hereby condoned. The 49 drafts representing the balance amount of Rs.5.22 Crores have been handed over by Sri Singh to the Official Liquidator in Chambers. The same has been accepted and taken on record by the Official Liquidator. The Official Liquidator shall now proceed to finalise and complete further formalities in the matter.
Order Date :- 24.4.2015 Arun K. Singh