Official Liquidator Of Ardor International Private Limited vs. Bank Of INDIA
Held
The Court allowed the Official Liquidator's report in terms of paragraphs 8(A), (B), and (C). This means the Court permitted the Official Liquidator to proceed with the sale of assets, including fixing the upset price and EMD as recommended by the Sale Committee, and to issue advertisements in the specified newspapers. Crucially, the Court also granted permission for the Official Liquidator to initiate e-auction proceedings through M/s. e-procurement Technologies Ltd., approving their terms and conditions, and to place the outcome of the auction before the Court for confirmation. Regarding the prayer in paragraph 8(D) concerning the payment to the advertising agency, the Court directed the Official Liquidator to file an appropriate report after receiving the bill from the advertising agency. The reasoning for approving the e-auction was based on the need for transparency and enhanced realization, as emphasized by the Ministry of Corporate Affairs and supported by previous High Court orders. The Court did not make a final decision on the release of advertising agency payments, deferring it pending the submission of the bill.
Facts
The Official Liquidator of Ardor International Private Limited (in liquidation) filed a report seeking directions from the High Court for the sale of the company's assets. The company was ordered to be wound up on December 6, 2016, and June 19, 2017. A Sale Committee was constituted, which recommended an upset price of ₹80 Crores and EMD of 10% for the registered office property (Lot No. 1) and a composite upset price of ₹32,50,00,250/- and EMD of 10% for four residential plots (Lot No. 2). The committee also recommended publishing advertisements in 'Times of India', 'Gujarat Samachar', and 'Economic Times'. The report further sought permission to initiate e-auction proceedings through M/s. e-procurement Technologies Ltd. and to release payment to the advertising agency. The valuer had submitted bills, indicating they had paid GST, and requested early payment, but the Official Liquidator had limited funds. The Sale Committee decided that secured creditors would contribute towards liquidation expenses.
Key Issues
1. Whether the Court would be pleased to permit the Official Liquidator to initiate e-auction proceedings through M/s. e-procurement Technologies Ltd., and approve the terms and conditions dated 19.01.2018 of the e-auction company, and direct the Official Liquidator to place the outcome of auction proceedings before the Court for confirmation of sale or otherwise, or permit the Official Liquidator to place on record the bids/tender received from prospective buyers in sealed cover. Petitioner's contention: The Official Liquidator sought permission to conduct e-auction proceedings, citing the need for transparency and enhanced realization, referencing previous High Court orders approving e-auction and the terms of M/s. e-procurement Technologies Ltd. The Ministry of Corporate Affairs also emphasized following e-auction processes. Revenue/State's contention: Not recorded. 2. Whether the Court would be pleased to permit the Official Liquidator to release the payment of the Advertising Agency on receipt of the bill after advertisement from the funds of the Company in liquidation. Petitioner's contention: The Official Liquidator requested permission to release payment to the advertising agency from the company's funds after receiving the bill. Revenue/State's contention: Not recorded.
Sections Cited
Rule 273, Rule 9, Rule 292(9)
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER Heard Mr.Jeet J. Bhatt, learned counsel for the applicant – Official Liquidator. Though served, no one appears for the respondents.
By way of this report, the Official Liquidator has prayed for the following reliefs:- “A) This Hon'ble Court may be pleased to fix-up the upset price and EMD for sale of the assets of the Company as mentioned in para-3 of this report or such other upset price and EMD, as may be considered appropriate by this Hon’ble
Court. B) This Hon’ble Court
The judgment continues below.
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