Permod Kohli, J. - (1.) THIS order will dispose of C.A. Nos. 690 of 2007 in C.A. No. 305 of 2006 and C.A. No. 691 of 2007 in C.A. No. 304 of 2006, as both the applications involve similar questions of law and facts.
(2.) THE applicants have filed the present applications seeking direction to the Official Liquidator for payment of interest on the amount of earnest money of Rs. 45,10,000/ - in C.A. No. 691/2007 and Rs. ,00,000/ - in C.A. No. 691 of 2007 for the period the amount remained with the Official Liquidator i.e. from 27.2.2006 to 10.8.2007. Pursuant to the order dated 12.1.2006 passed by this Court in Company Application No. 939/2005 in Company Petition No;50 of 1999, a sale notice was published in the Tribune (Chandigarh Edition), Dainik Bhaskar (Chandigarh Edition), Ajit (Jalahdhar Edition), Amar Ujala (Kanpur), Economic Times (Mumbai and Delhi Edition) and Thanti (Chennai) on 25.1.2006 for the sale of the assets/properties of M/s Domino Leathers Limited (in liquidation). The applicants also submitted their offers and deposited the earnest money as noticed here -in -above. The Official Liquidator applied for confirmation of the sale. In the meantime, other bidders also came forward and offered higher amount. Ultimately, the bid was finalised for Rs. 4.30 crores in favour of M/s Chaudhary & Sons Forgings Private Limited in respect to Lot No. IV and for Rs. 3.55 crores in favour of T.H. Estate Private Limited in respect of Lot No. VII (composite Lot Nos. V and VI) and the amount/of earnest money deposited by the applicants was refunded to them on 10.8.2007.
(3.) THE Official Liquidator has opposed the payment of interest. Admittedly, the sale notice was issued by the Official Liquidator containing following stipulations: 3. The earnest money deposit given for participating in the auction sale will be returned to the respective bidder by the Official Liquidator in the event of his offer not being accepted. No interest shall be payable on earnest money. xxx xxx xxx xxx xxx 13. In case the sale is not confirmed or is set aside on any ground whatsoever the purchaser shall be entitled to refund of his deposit or earnest money as the case may be without interest and shall not be entitled to be paid his costs, charges and expenses occasioned by his bid for the sale property not being declared any purchaser thereof and incidental to the sale nor shall be entitled to any compensation or damages whatsoever.;