Official Liquidator Of M/S.Esskay Shipping PVT.LTD vs. Idbi Bank Limited
Held
The Court approved the highest offer of J. Saravana Vel for Lot No.1 at Rs.69,00,000/- and directed him to deposit the balance sale consideration of Rs.66,00,000/- within thirty days. Similarly, the highest offer of Darsipudi Viswanadh for Lot No.2 at Rs.97,70,000/- was approved, with a direction to deposit the balance Rs.91,81,000/- within thirty days. The highest offer of The Kanaka Mahalakshmi Co-operative Bank Ltd. for Lot No.3 at Rs.4,23,33,300/- was also approved, requiring a deposit of the balance Rs.3,91,20,300/- within thirty days. The sale of assets was confirmed in favour of these bidders, subject to the deposit of the balance amounts. The Official Liquidator was permitted to hand over possession after receiving the entire sale consideration and to refund the EMD of the second and third highest bidders. The costs of the application were directed to be borne by the company's assets. The Court found that the offers were satisfactory and above the reserve price, leading to the confirmation of the sales.
Facts
This matter concerns a Company Application filed by the Official Liquidator of M/s. Esskay Shipping Private Limited, which was ordered to be wound up on August 30, 2017. The Official Liquidator sought approval for the sale of company assets in three lots through e-auction. The Court had previously permitted the sale on an "as is where is and whatsoever there is basis" basis. A creditor meeting was held with IDBI Bank, the secured creditor, to finalize an e-auction service provider. M/s. e-Procurement Technologies Ltd. (Auction Tiger) was selected due to lower charges. The e-auction was conducted on January 19, 2024, and the secured creditor confirmed that the highest offers for all three lots exceeded the Minimum Upset Price/Reserve Price.
Key Issues
1. Whether the highest offers received for Lot No.1, Lot No.2, and Lot No.3 in the e-auction are to be approved and confirmed in favour of the respective highest bidders, considering they are above the Minimum Upset Price/Reserve Price. Petitioner's Argument (Official Liquidator): The Official Liquidator presented the details of the e-auction, including the highest bids received for each lot, and highlighted that these bids exceeded the Minimum Upset Price/Reserve Price. The secured creditor, IDBI Bank, also opined that the offers were satisfactory and requested the Court to place them before it for approval and confirmation. The Official Liquidator sought directions for the successful bidders to deposit the balance sale consideration and for the confirmation of sale. Respondent's Argument (IDBI Bank): As the secured creditor, IDBI Bank participated in the creditor meetings and confirmed that the offers received were above the reserve price. They supported the Official Liquidator's request to place the offers before the Court for approval and confirmation.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
Order:
This Company Application has been filed for the following reliefs.
“i) Approve the highest offer of J.Saravana Vel for Rs.69,00,000/- in respect of Lot No.1 i.e. Office portion of the building at Flat No.9, Third Floor, New Door No.336, Old Door No.166, Thambu Chetty Street, George Town, Parrys, Chennai, Tamil Nadu, Admeasuring 1107 Sft., including common area (Built- up area 886 sft. + Common area 221 sft.) with fixtures and furniture (scrapped condition) and directions may kin
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Andhra Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.