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B.I.F.R. v. M/S Electra (India) Ltd. - MISC. COMPANY APPLICATION No. 9 of 2000  RD-AH 7921 (19 April 2006)
MISC. COMPANY APPLICATION NO. 9 OF 2000
In the matter of: M/s Electra (India) Ltd. (In Liquidation)
Hon'ble Sunil Ambwani, J.
1. Present Shri Anjani Kumar Misra, learned counsel for Official Liquidator; Shri S.K. Saxena, Official Liquidator; Shri J. Nagar for LIC; Shri Pushkar Mehrotra for M/s Agarwal & Associates, who have deposited entire bid amount and have been handed over possession of factory and land and Shri Ashutosh Vaish for PICUP. Shri K.L. Grover appearing for Punjab National Bank is not present. Shri S.K. Ahuja, the valuer is also present.
2. After confirmation of sale, M/s Agarwal & Associates represented by Shri Pushkar Mehrotra moved an application to deduct the value of the land as per actual area of the land available at the site and to return the proportionate amount. M/s Agarwal & Associate have deposited the entire bid amount subject to their prayers in the application.
3. An enquiry was initiated by the Court to find out the exact measurement of the land available on the spot. Shri S.K. Ahuja, who had carried out earlier valuation, was asked to submit a report.
4. Shri S.K. Ahuja in his second report submitted that he did not carry out the actual measurement on the previous occasions on account of the fact that there were bushes and water logging in the area and had calculated the area on the basis of the documents
produced by the Bank. On actual measurements he found that in fact, 15993.74 sqmt. is available as against 20609 sqmr. Shri S.K. Ahuja was issued a show cause notice as to why action be not taken against him for generating an incorrect report. He has submitted an explanation dated 3.4.2006 stating therein that at the time of taking over possession on 6.1.2004 the entire premises of the EIL factory was not accessible due to water logging & growth of bushes and it was not possible to take actual measurement of the land. He had on the basis of title deeds and site plan, and the government approved and registered valuer's (Sri S.P. Bansal) report dated 16.3.1996 reported the area of land to be 20609 sqmt. On 14.12.2005, when he carried out fresh inspections and took actual measurements, he was asked by Agarwal & Associates and the representative of Official Liquidator not to measure the land, which according to Shri Ahuja was very recently separated by brick masonry wall. According to Shri Ahuja, representatives of Agarwal & Associates and Official Liquidator directed him to measure only the area under the possession of the Official Liquidator, and on this information and instructions, he re-measured the area and reported the area to be 15993.74 sqmr. S.K. Ahuja states that the proceedings before the BIFR also supports his stand in which the SBI has taken a stand in its report dated 10.11.1999, para 24 page -5; "the possession of a portion of company premises was handed over to one of the friends of the main promoter (s) of EIL, inspite of serious objections voiced of the bank in consortium meetings."
5. On the first inspection and based on second report of the valuer the Court would have considered the prayers for Agarwal & Associates, to refund the proportionate land price. However, it appeared to the Court that there was something wrong, and thus Shri S.K. Ahuja was asked to submit explanation before the Court. Shri Ahuja informed the Court that actual measurements of the area as
worked out by him is still 20609, and that about 5000 sqmt. has been occupied by the adjacent factory which claims to have purchased the area. Shri Pushkar Mehrotra and Official Liquidator have disputed his statement that they had stopped him to measure the entire land.
6. On these facts, the Court had directed the District Magistrate to get the area measured. It is reported that plot numbers which have been sent for verification by the District Magistrate are situate in village, which is far away from the factory.
7. Today when the matter was taken up, Shri Pushkar Mehrotra has modified his prayer and states on behalf of Agarwal & Associates that the process for delivery of possession and execution of sale deed in respect of entire land 20609 sqmr be initiated. This prayer has changed the entire complexion of the matter, as both the Official Liquidator and valuer still insist that actual area of the factory site is 20609 sqmt.
8. Having heard all concerned, I direct the Official Liquidator to take over possession of the 4873.49 sqmt which is owned by the company (In Liquidation) and is covered by a brick masonry clubbed with the adjoining factory. The valuer, the bank and the Official Liquidator have verified that this area belongs to the Company and was subject matter of advertisement inviting offers for sale. The District Magistrate and Senior Superintendent of Police will provide all help to the Official Liquidator to recover this area for being handed over to M/s Agarwal & Associates.
9. In view of the above, the explanation of Shri S.K.Ahuja is found satisfactory and proceedings initiated against him are dropped. The Official Liquidator will continue to allot the work to him.
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