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In The Matter Of M/S Rajinder Steels Ltd. - COMPANY PETITION No. 44 of 1998  RD-AH 11245 (5 July 2007)
COMPANY PETITION NO. 44 OF 1998
In the matter of
M/s Rajinder Steels Limited (In Liquidation)
Hon'ble Sunil Ambwani, J.
1. Present Shri Anjani Kumar Misra for Official Liquidator; Shri B.K.L. Srivastava, Official Liquidator; Shri Om Prakash Misra for IFCI Ltd. and Standard Chartered Bank substituted in place of ICICI Bank Ltd.; Shri J. Nagar for LIC; Shri Amit Saxena for IDBI and Shri A.K. Misra for M/s Roopshan Textiles Ltd.
2. Today when the matter has come up for consideration of confirmation of the highest bid for sale of assets of the company (in liquidation) at Kanpur, made by M/s Roopshan Textiles Ltd (for plant & machinery of Rs. 7 crores) and M/s Enrich Engineering Works Pvt Ltd ( for land and building of Rs. 2.5 crores) total Rs. 9.5 crores, the Official Liquidator informs that M/s Roopshan Textiles Ltd has deposited the entire bid amount, which includes Rs. 1 crore as earnest money and Rs. 6 crores on 27.5.2007. M/s Enrich Engineering Works Pvt Ltd has deposited Rs. 1 crore as earnest money which was treated as part payment of the bid also.
3. M/s Zircon Traders Limited has made a higher offer of Rs. 10.5 crores. It did not take inspection and did not bid at Mumbai. It did not approach Asset Sale Committee and has directly approached this Court on 25.6.2007 by making a mention to the Court that they are ready to pay Rs.10.5 crores for both the lots namely plant and machinery and land and building. The court did not accept the mention as the matter was fixed for confirmation of sale on 5.7.2007. Shri Rohit Agarwal, appearing for Zircon Traders Limited, filed an application giving this higher offer on 28.5.2007 after serving copy on the Official Liquidator. On that day again a mention was made to accept demand draft of Rs.5 crores towards their higher offer. The Court fixed the matter for 5.7.2007.
4. Shri Rohit Agarwal, appearing for Zircon Traders Limited, has relied upon judgment in Divya Manufacturing Company (P) Ltd vs. Union Bank of India and others, (2000) 6 SCC 69, in support of accepting his offer of the highest bid. Shri A.K. Misra appearing for M/s Roopshan Textiles Ltd, on the other hand, has relied upon judgments in M/s Navalkha vs. Sri Ramanya Das 1969 (3) SCC 537; Meharban Singh and others vs. Naresh Singh and others 1969 (3) SCC 542; M/s Kayjay Industries (P) Ltd vs. M/s Asnew Drums (P) Ltd and others; Chairman, Ramappa Gundappa Sahakari Samyakta Besava Sangha Ltd vs. State of Mysore and others, (1974) 2 SCC 221; Shrawan Kumar Awarwal vs. Shrinenp Investment Ltd and others (1990) 2 Comp LJ 231 (Cal); Sunil Dev and others vs. Delhi & District Cricket Association and others, (1990) 2 Comp LJ 245 (Del); and Shri Vishnu Kant Gupta vs. Official Liquidator and others, Special Appeal No. 232 of 2007 to support his submission that the higher bid made at this stage when Roopshan Textiles has deposited the entire amount be rejected.
5. The Court made it clear to Shri Rohit Agarwal that it is not going to accept offer of Rs. 10.5 crores as the assets were put to sale long ago and that several advertisements were made after which valuation was reduced. The Official Liquidator has incurred huge expenses and that the sale of these assets of the company at Kanpur has been considerably delayed.
6. Shri Rohit Agarwal appearing for M/s Zircon Traders Ltd then made a higher offer of Rs. 11.5 crores which was the initial valuation of the company at Kanpur and was reduced by the Asset Sale Committee as the advertisements were not getting appropriate response. He has also deposited Rs. 10.5 today crores with the Official Liquidator today in Court Demand Drafts No. 467779 dated 23.6.2007 drawn in favour of Official Liquidator, UP at ICICI Bank Ltd Allahabad for Rs. 5 crores; Demand Draft No. 467785 dated 4.7.2008 for Rs.2.90 crores, Demand Draft No. 467786 dated 4.7.2007 for Rs. 2.60 crores drawn in favour of the Official Liquidator, UP at Allahabad at ICICI Bank Ltd Allahabad. Shri Rohit Agarwal states that M/s Zircon Traders Ltd is ready to deposit the remaining amount Rs. 1 crore by any reasonable time fixed by the Court.
7. With this increased offer, which is almost 20% more than the offer of the highest bidders, it would be appropriate to allow opportunity to the highest bidder as well as secured creditors to submit their comments.
8. Let the highest bidders and secured creditors submit their comments to this highest offer of Rs. 11.5 crores of which Rs. 10.5 crores has been deposited with the Official Liquidator to be kept in no lien account. List on 20.7.2007 at 02.00 PM. The Official Liquidator will send information to M/s Enrich Engineering Pvt. Ltd to attend the hearing on that date.
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