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COMA/390/2008 7/ 7 ORDER
IN
THE HIGH COURT OF GUJARAT AT AHMEDABAD
COMPANY
APPLICATION No. 390 of 2008
In
COMPANY
PETITION No. 157 of 1997
In
COMPANY PETITION No. 156 of 1997
=========================================================
THE
MUNICIPAL CORPORATION CITY OF AHMEDABAD - Applicant(s)
Versus
AHMEDABAD
MANUFACTURING AND CALICO PRINTING COMPANY LTD., & 11 -
Respondent(s)
=========================================================
Appearance :
MR
MEHTA, NANAVATI & NANAVATI for Applicant(s) : 1,
MS AMEE
YAJNIK for Respondent(s) : 1,
NOTICE SERVED BY DS for
Respondent(s) : 2 - 4, 6,8 - 10.
MR BHARAT JANI for Respondent(s)
: 5,
MR KI SHAH for Respondent(s) : 7,
MR DS VASAVADA for
Respondent(s) : 11,
MR NIRAJ SONI, AGP for Respondent(s) :
12,
=========================================================
CORAM
:
HONOURABLE
MR.JUSTICE M.R. SHAH
Date
: 09/04/2010
ORAL
ORDER
Present
Judges Summons has been taken out by the applicant- Ahmedabad
Municipal Corporation for an appropriate order directing the
Official Liquidator of M/s.Ahmedabad Manufacturing & Calico
Printing Mills Co. Ltd. (in liquidation) to sale Calico Dome
situated at Relief Road, Ahmedabad which is the asset of the Company
in liquidation at the price that may be fixed by this Court. It is
also further prayed to direct the Official Liquidator of the Company
in liquidation to execute the necessary conveyance of the said asset
Calico Dome in favour of the applicant upon the applicant
depositing with him the sale price of the said Calico Dome
that may be fixed by this Court.
At
the outset, it is required to be noted that at the relevant time,
when the Judges Summons was taken out, it was the case on behalf of
the Ahmedabad Municipal Corporation that with an intention to create
awareness amongst the citizens and to develop a comprehensive plan
for conservation of wall city of Ahmedabad, established a separate
Heritage Cell headed by Municipal Commissioner and under his
leadership a team of Deputy Municipal Commissioner and other senior
officers of the Corporation. At the relevant time, Calico Dome
was not declared as Heritage Property and even the necessary
Heritage Regulations were also not framed under the provisions of
Gujarat Town Planning Act. It was also submitted that at the
relevant time, the Corporation has undertaken a project for
restoration of Calico Dome and for that purpose, the
Corporation has sanctioned Rs.20 Lacs. It was also further submitted
that Corporation would be an appropriate Authority to take care of
Calico Dome as heritage building. It was the case on behalf of
the applicant that therefore, Municipal Commissioner, Ahmedabad
Municipal Corporation approached the Official Liquidator of the
Company in liquidation to sale the said Calico Dome on
reasonable amount that may be fixed. However, the same was not
materialized as the Official Liquidator was asking for a market
price. That thereafter, this Court passed an order directing the
Corporation to deposit a sum of Rs.30 Lacs to show their bona-fide
and the Official Liquidator was directed to handover the possession
of the Calico Dome to the Ahmedabad Municipal Corporation,
pending the determination of the amount to be paid towards the sale
consideration of the Calico Dome , it has already deposited Rs.
30 Lacs and the possession is already handed over to the
Corporation.
It
appears that there was some dispute with respect to the valuation of
the Calico Dome and/or with respect to the amount to be paid
by the Ahmedabad Municipal Corporation towards the sale
consideration of the said Calico Dome and according to the
Official Liquidator, the market valuation of the Calico Dome
was approximately Rs.1,20,00,000/- (Rupees One Crore and Twenty
Lacs only) and so far as the Corporation is concerned, it was
approximately Rs.25 to Rs.30 lacs. Therefore, this Court directed
the State Government to have the valuation of the Calico Dome
and submit the report before this Court. As per the valuation report
of the State Government, the valuation / market value of the Calico
Dome would be approximately Rs.52,10,000/- (Rupees Fifty Two Lacs
and Ten Thousand Only).
Shri
Saurin Mehta, learned advocate appearing on behalf of Nanavati and
Nanavati for Ahmedabad Municipal Corporation has submitted that as
such, in view of Heritage Regulation, Calico Dome is declared
as the Heritage Property and as such, no development and/or other
activities is permissible in the property in question without prior
permission of the concerned Department. It is submitted that as
such, Ahmedabad Municipal Corporation wants to restore the Calico
Dome to its original and therefore, as such, the same would be in
the larger public interest and in the interest of citizens of
Ahmedabad. It is submitted that therefore, as such, the property of
Calico Dome cannot be equated with other properties of the
Company in liquidation for the purpose of market value, etc. and the
Calico Dome is required to be considered as a distinct and
special property. It is submitted that in-fact looking to the
purpose for which, Ahmedabad Municipal Corporation wants Calico
Dome , even the said property can be given to the Corporation at
token price. It is further submitted that still as the Corporation
has already deposited the amount of Rs.30 Lacs, therefore, it is
requested to consider a sum of Rs.30 Lacs as reasonable price with
respect to Calico Dome and therefore, direct the Official
Liquidator to execute the Conveyance Deed in favour of Ahmedabad
Municipal Corporation on the aforesaid sale consideration.
Ms.Amee
Yagnik, learned advocate appearing on behalf of the Official
Liquidator has submitted that as such, the Official Liquidator
cannot give consent and therefore, it is requested to pass an
appropriate order which deem just and proper. However, she is not in
a position to dispute that the Calico Dome belonging to the
company in liquidation cannot be equated with other properties of
company in liquidation and it has a distinct value and the property
which is declared as Heritage Property, therefore, it is requested
to pass an appropriate order which deem just and proper.
Similarly,
learned advocates appearing on behalf of the respective respondents
have also requested to pass an appropriate order which deem just and
proper looking to the peculiar facts and circumstances of the case
and fact that Calico Dome is already declared as Heritage
Property and more particularly, when Calico Dome is to be used
as Heritage Property and the Corporation is to restore the Calico
Dome to its original.
Heard
the learned advocates appearing on behalf of the respective parties
at length.
At
the outset, it is required to be noted and which cannot be disputed
that Calico Dome has its own importance and value. It is also
not in dispute that now the Calico Dome is already declared as
the Heritage Property under the Regulation framed by the State
Government under the provisions of the Gujarat Town Planing Act
which are also known as Heritage Regulation under the GDCR. Once the
property is declared as heritage, there are restrictions on
development and re-development / repairs, etc. Thus, on declaration
of the Calico Dome as Heritage Property as such, the same
cannot be used and/or developed by anybody and everybody has to act
on the advice of the Heritage Conservation Cell. Therefore,
considering the status of the Calico Dome it cannot be
compared with other properties of the Company in liquidation and for
the purpose of market price, etc. as it has its own value. Even
considering the request made by the Corporation through their
Commissioner they want Calico Dome as the Corporation wants to
restore to Calico Dome to its original. Therefore, in the
peculiar facts and circumstances of the case and purpose for which,
the Corporation wants Calico Dome property of the company in
liquidation, which is in the larger public interest, it appears to
the Court that on payment of Rs.30 Lacs (which is already paid), the
Official Liquidator may be directed to execute Conveyance Deed in
favour of Corporation with respect to the Calico Dome with
certain terms and conditions which the learned advocate appearing on
behalf of the Corporation has agreed to fulfill and comply.
Under
the circumstances and in the facts and circumstances of the case
narrated herein above, Official Liquidator of the company in
liquidation is hereby directed to execute the sale deed / conveyance
deed in favour of the Ahmedabad Municipal Corporation with respect
to Calico Dome for a value / sale consideration of Rs.30 Lacs
which the Corporation has already deposited. Said exercise shall be
completed within a period of 4 weeks from today. Ahmedabad
Municipal Corporation, through its Municipal Commissioner, is hereby
directed to use the Calico Dome only for the purpose of
maintaining the Calico Dome and is hereby directed to restore
the Calico Dome to its original within a period of 1 year from
today and submit the report before this Court. Municipal
Commissioner, Ahmedabad Municipal Corporation, to file an
undertaking before this Court to the effect that on execution of the
sale-deed / conveyance deed in favour of the Corporation of the
Calico Dome as stated above, the Corporation shall restore the
Calico Dome to its original within a period of 1 year from
today and same shall not be used for any other purpose other than
the Calico Dome meaning thereby, there shall not be any other
activities inclusive of Commercial Activities. Even otherwise, once
the Calico Dome is declared as Heritage, same cannot be used
for any other purpose. Ahmedabad Municipal Corporation to get
property for restoring the Calico Dome to its original. The
Corporation to obtain an appropriate permission from the appropriate
authority at the earliest. As agreed by Shri Mehta, learned advocate
appearing on behalf of the Corporation, if it is found that Calico
Dome is not restored to its original within a stipulated time as
stated herein above, and/or within an extended period, if any,
and/or if it is used for any other purpose, in that case, an
appropriate order can be passed to return the Calico Dome to
the Official Liquidator which can be considered in accordance with
law.
With
this, present company application is disposed of.
(M.R.SHAH,
J.)
(ashish)
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