Decided on July 31,1995

Bengal Potteries Ltd. (In Liquidation) And Another Appellant
ABC Respondents

Referred Judgements :-



Bhagabati Prasad Banerjee, J. - (1.)An important issue has been raised before us as to whether the Court can hold a fresh auction on the basis of fresh bid after an auction sale was held and the bid of the highest bidder M/s. Sree Ganga Construction Co. Ltd. at Rs. 5.50 crores was accepted by us by order dated July 13, 1995, on the basis of some offers made by some p ies on affidavit before the Court.This case has a chequered career. The Company went into liquidation long back.
(2.)Previously in all the notices, which were issued for sale of the property, particulars of the land and the measurement thereof were not clearly disclosed and that was the reason why a fresh notice was published giving in details the particulars of the land and the situation of such land so that the intending purchasers might identify the land and might participate in the bid after ascertaining the real value of such properties. It may be mentioned that on an earlier occasion before the matter was assigned to this Bench on the basis of All-India publications in the newspapers the highest bid that was obtained was Rs. 3.20 crores, and all the parties agreed to a proposed order to be passed by the Court accepting the said sum of Rs. 3.20 crores as the sale value of the Bengal Pottaries (In Liquidation) including the land, buildings, plant and machinery etc. But ultimately that party backed out.
(3.)After issuance of a proper public notice the matter was put into auction in open Court. Ultimately, on the day when the auction was held, only two bidders appeared and participated in the bid. Out of the two, the bid of M/s. Sree Ganga Construction Co. Ltd. was accepted as highest bid. Sree Ganga Construction Co. Ltd. rose upto Rs. 5.20 crores as against Rs. 5.17 crores by the other bidder. But as it was found that Rs. 5.20 crores was far below the valuation of the value in respect of the property, on the request made by the Court the party agreed to increase the bid amount to Rs. 5.50 crores. So, the bid of Sree Ganga Construction Co. Ltd. was found to be the highest bid. On June 11, 1995, the matter was adjourned till the next date. On July 13, 1995, Sree Ganga Construction Co. Ltd. paid the balance earnest money aggregating to 20% of the bid money and, as such, the said party was the highest bidder and the bid of that party was accepted.

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