[Cites 0, Cited by 0]
Calcutta High Court
Dankuni Steel Limited vs Sarat Chatterjee & Co. (Vsp) Pvt on 10 December, 2025
Author: Debangsu Basak
Bench: Debangsu Basak
OD-7
APO/293/2014
IA No.GA/4/2018 (Old No.GA/3073/2018)
GA/5/2025
IN THE HIGH COURT AT CALCUTTA
Civil Appellate Jurisdiction
Original Side
DANKUNI STEEL LIMITED.
-VERSUS-
SARAT CHATTERJEE & CO. (VSP) PVT.
LTD. & ORS.
BEFORE :
THE HON'BLE JUSTICE DEBANGSU BASAK
And
THE HON'BLE JUSTICE MD. SHABBAR RASHIDI
Date : 10th December, 2025.
Appearance:
Mr. Pourush Bandiopadhyay, Adv.
Mr. Rajesh Upadhyay, Adv.
...for the appellant.
Mr. Tilak Bose, Sr. Adv.
Ms. Suchismita Ghosh, Adv.
Mr. Pradip Kumar Sarawagi, Adv.
...for the applicant/respondent no.1.
Mr. D. N. Sharma, Sr. Adv.
Ms. Sananda Mukhopadhyay, Adv.
Mr. S. R. Saha, Adv.
...for the respondent No.2.
Mr. Rabi Prosad Mookherjee, Adv.
...the Special Officer.
The Court :- Application being IA No.GA/4/2018 (Old
No.GA/3073/2018) is taken up for consideration.
Application is at the behest of the respondent no.1 in the appeal.
Learned senior advocate appearing for the respondent no.1 in the
appeal draws the attention of the Court to the judgment and order dated July
29, 2015. He submits that, a Special Officer was appointed for the purpose of
disposal of the 10,000 MT of coke. He submits that, there are two other orders
passed subsequently. One of the orders is by the Hon'ble Supreme Court. He
contends that, none of the orders restrain the learned Special Officer appointed
from selling 10,000 MT of coke and allowing appropriation of the proceeds of
the sale in accordance with the order dated July 29, 2015.
Learned senior advocate appearing for the respondent no.1 submits
that, in so far as the contention as to the appropriation of the sale proceeds is
concerned, the same can be adjudicated upon at a later stage.
Learned senior advocate appearing for the respondent no.2 draws the
attention of the Court to the various orders passed from time to time. He
submits that, the respondent no.1 cannot be allowed to take away the entirety
of the sale proceeds ostensibly on the ground of port charges or otherwise. He
submits that, appropriate quantification of the entitlement of the respondent
no.1 should be made prior to the sale proceeds being disbursed to the
respondent no.1.
Learned senior advocate appearing for the respondent no.2 draws the
attention of the Court to the order dated December 14, 2017. He submits that,
the exact of amount of charges and taxes must be indicated in the public
notice so that a clear picture is given to the intending purchasers while they
are making their bids.
Learned senior advocate appearing for the respondent no.1 submits
that, the order of the Hon'ble Supreme Court dated December 14, 2017 states
that if it is possible then, the exact amount of charges and taxes may be
indicated. Since a large amount of time was consumed, that exercise may not
be helpful in the facts and circumstances of the present case. He submits that,
the sale must be allowed to go through. Such an issue as to the quantification
of the actual charges and taxes may be made at a later stage.
Special Officer is present in Court.
By the judgment and order dated July 29, 2015, the co-ordinate
Bench disposed of the appeal along with a contempt petition. Operative
portion of the judgment and order dated July 29, 2015 is as follows:
"We are also of the view that in view of the vagaries of the
market and the likelihood of price of coke going down and to avoid
further escalation of demurrage charges it would be prudent to sale
10,000 MTs of coke out of the remainder stock to secure the claim of
R-2 (LMJ). Appellant and/or RD4 (Concast) shall be at liberty to take
delivery of remainder of the goods after clearing of the customs duty
and port charges thereon in accordance with law.
In this backdrop, we are of the opinion that a Special Officer be
appointed to inspect the aforesaid godowns and make an inventory
of the goods lying therein and thereafter to take steps for sale of
10,000 MTs of coke out of the stock lying at R-5 and Ripley godown.
The sale price of the aforesaid consignment after clearance of
customs duty and port charges thereon shall be deposited by the
Special Officer with the Registrar, Original Side, who shall keep the
same in an interest bearing fixed deposit account in a nationalized
bank subject to the result of the suit. The appellant and/or R-4
(Concast) shall be at liberty to take delivery of remainder of the
stock lying in the godowns after clearing the customs duty and port
charges thereon, if any, in accordance with law. This order shall not
preclude R-1 (Sarat) from taking steps for recovery of its handling
and other service charges in accordance with law, if so advised."
Judgment and order dated July 29, 2015 thereafter, proceeded to
appoint the learned Special Officer to implement such order.
Several other proceedings took place between the parties subsequent
to the order dated July 29, 2015.
Hon'ble Supreme Court on December 14, 2017 was pleased to set
aside the order dated May 15, 2017 of the High Court. Hon'ble Supreme Court
was pleased to observe as follows:
"15. We, therefore, allow this appeal and set aside the order of the
High Court. Special Officer is directed to get the valuation done again so that
present day valuation of the goods is ascertained and on that basis fresh
public notice for inviting the bids for the goods in question be issued with
clear stipulation that the reserved price is exclusive of taxes. If it is possible
to ascertain the exact amount of charges and taxes those may also be
indicated in the public notice so that the intending bidders have clear picture
while making their bids. In view of the fact that fresh auction is ordered, the
amount which was deposited by the auction purchaser shall be refunded."
Our understanding of the above noted direction of the Hon'ble
Supreme Court is that, if, the exact amount of charges and taxes may be
indicated in the public notice in order to appraise the intending bidders of the
sale, only if it is possible to find out such details.
A period in excess of 10 years elapsed from the date of the impugned
judgment and order dated July 29, 2015 and the sale is yet to take place.
We are informed that valuation was obtained very recently. At
present, we are informed that there is no impediment in the sale taking place.
In such circumstances, learned Special Officer will proceed to
advertise the sale forthwith. Advertisements will appear once in English
newspaper and once in vernacular newspaper of the choice of the learned
Special Officer. Advertisements should be published within seven days from
date. Costs of the advertisements be initially paid by the respondent no.1. The
cost of the advertisement will be reimbursed from out of the sale proceeds to
the respondent no.1 by the learned Special Officer.
Reserve price for sale of 10,000 MT coke put up for sale be the last
valuation obtained by the learned Special Officer. The advertisements shall
specify that there are charges, taxes and customs duties payable in respect of
the goods put up for sale. Learned Special Officer will invite the purchasers to
undertake due diligence in respect thereof. Learned Special Officer will specify
in the advertisement that no claim in this regard will be entertained. Sale will
be on "as is where is" basis.
Rights inter se to appearing parties may be adjudicated upon at a
later stage.
List both the applications and the appeal on January 13, 2026 when
the learned Special Officer will submit a report.
(DEBANGSU BASAK, J.)
(MD. SHABBAR RASHIDI, J.)
A/s.
