M/S. Sparta Cements And Infra LTD(In Liquidation) vs. Manager (Legal / Recovery) Union Bank Of INDIA
Held
The Court considered the contents of the Official Liquidator's Report and noted the fact that no offers were received by the Official Liquidator for the purchase of the company's properties. Based on this, the Court found that the Official Liquidator could be permitted to pay the professional bill of Rs. 7,080/- to the e-auction service provider, M/s. e-Procurement Technologies Ltd. The Court granted the prayer made in paragraph 5(b) of the report, and the report was disposed of. The ratio decidendi is that expenses incurred for an e-auction process, even if unsuccessful in generating offers, are payable to the service provider if the process was conducted as per the court's directions or in the ordinary course of liquidation proceedings.
Facts
This matter concerns an Official Liquidator's Report filed before the Gujarat High Court. The petitioner, M/s. Sparta Cements and Infra Ltd (In Liquidation), through its Official Liquidator, sought permission to pay a professional bill of Rs. 7,080/- (including 18% GST) to an e-auction service provider, M/s. e-Procurement Technologies Ltd. The report indicated that advertisements were issued for the sale of the company's properties, and two tender forms were sold. However, by the closing date of March 16, 2018, no offers were received by the Official Liquidator for the purchase of the company's properties. The Official Liquidator requested the court to take these facts on record and permit the payment of the service provider's bill.
Key Issues
1. Whether the Official Liquidator should be permitted to pay the professional bill of Rs. 7,080/- to the e-auction service provider, M/s. e-Procurement Technologies Ltd., including the GST component, in light of the fact that no offers were received for the sale of the company's properties. The petitioner, through its advocate, argued that the facts presented in the report, particularly the non-receipt of any offers for the company's properties despite the e-auction process, should be taken note of. They contended that the Official Liquidator should be permitted to pay the professional bill of the e-auction service provider. The respondent's arguments are not recorded in the judgment.
Sections Cited
GST
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Cause title — parties, addresses and appearances
ORAL ORDER
Following are the prayers made in paragraph no.5 of the present report: “a) This Hon’ble Court may be pleased to take the facts on the record of this Hon’ble Court as stated herein above. b) This Hon’ble Court may be pleased to permit the Official Liquidator to pay professional bill of Rs.7080/ (6000+@18%GST) of eauction service provider agency namely M/s. eProcurement Technologies Ltd. c) Such other and further orders and directions as may be considered just and app
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