{"id":259431,"date":"2011-07-01T00:00:00","date_gmt":"2011-06-30T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/selvel-vs-official-on-1-july-2011"},"modified":"2018-03-28T07:48:51","modified_gmt":"2018-03-28T02:18:51","slug":"selvel-vs-official-on-1-july-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/selvel-vs-official-on-1-july-2011","title":{"rendered":"Selvel vs Official on 1 July, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Selvel vs Official on 1 July, 2011<\/div>\n<div class=\"doc_author\">Author: K.A.Puj,<\/div>\n<pre id=\"pre_1\">  \n Gujarat High Court Case Information System \n    \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nOJMCA\/232\/2010\t 10\/ 10\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nMISC.\nCIVIL APPLICATION No. 232 of 2010\n \n\nIn\n\n\n \n\nOFFICIAL\nLIQUDATOR REPORT No. 20 of 2010\n \n\nIn\n\n\n \n\nCOMPANY\nPETITION No. 69 of 2002\n \n\nWith\n\n\n \n\nCOMPANY\nAPPLICATION No. 374 of 2010\n \n\nIn\n\n\n \n\nOFFICIAL\nLIQUDATOR REPORT No. 20 of 2010\n \n\nWith\n\n\n \n\nMISC.\nCIVIL APPLICATION No. 233 of 2010\n \n\nIn\n\n\n \n\nOFFICIAL\nLIQUDATOR REPORT No. 20 of 2010\n \n\nWith\n\n\n \n\nCOMPANY\nAPPLICATION No. 225 of 2011\n \n\nIn\n\n\n \n\nCOMPANY\nAPPLICATION No. 374 of 2010\n \n\n======================================\n \n\nSELVEL\nMINERALS PVT LTD - Applicant\n \n\nVersus\n \n\nOFFICIAL\nLIQUIDATOR OF JALAN ISPAT CASTING LTD &amp; 1 - Respondents\n \n\n====================================== \nAppearance\n: \n1.\t Misc.\nCivil Application No.232 of 2010\n \n\n\tMR\nSAURABH G AMIN for Applicant. \n\tMS AMEE YAJNIK for Respondent No.\n1.  \n\tMR NAVIN K PAHWA for Respondent No. 2. \n\n \n\n2.\t Misc.\nCivil Application No.233 of 2010\n \n\n\tMR\nNAVIN K PAHWA for Applicant.\n \n\n\tMS\nAMEE YAJNIK for Respondent No.1.\n \n\n\tMR\nSURABH G AMIN for Applicant.\n \n\n \n\n\n \n\n3.\t Company\nApplication No.374 of 2010\n \n\n\tMR\nSAURABH G AMIN for Applicant. \n\tMS AMEE YAJNIK for Respondent No.\n1.  \n\tMR NAVIN K PAHWA for Respondent No. 2.\n \n\n \n\n\n \n\n4.\t Company\nApplication No.225 of 2011\n \n\n\tMR\nG.L. RAWAL, Senior Advocate with \n\n \n\n\tMR\nDIPEN A DESAI for Applicant. \n\tMS AMEE YAJNIK for Respondent No. 1.\n \n\tMR HS MUNSHAW for Respondent No. 2.  \n\n \n\n======================================\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE K.A.PUJ\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 22\/04\/2011 \nCOMMON ORAL ORDER<\/pre>\n<p id=\"p_1\">\tSince<br \/>\n\tcommon issue is involved in all these four applications, the same<br \/>\n\tare being disposed of by this common order.\n<\/p>\n<p id=\"p_1\">\tOJ<br \/>\n\tMisc. Civil Application No.232 of 2010 is filed by Selvel Minerals<br \/>\n\tPrivate Limited, the auction purchaser of Lot A-IV whereas OJ Misc.<br \/>\n\tCivil Application No.233 of 2010 is filed by Anik Ferro-Alloys<br \/>\n\tPrivate Limited, the nominee of the auction purchaser of Lot B-IV.<br \/>\n\tBoth these applicants have made common prayer that the order dated<br \/>\n\t13.08.2010 passed by this Court in Official Liquidator&#8217;s Report<br \/>\n\tNo.20 of 2010 be modified and the applicants may be permitted to<br \/>\n\tchange inter-se the properties covered by the respective Lots<br \/>\n\tpurchased by them, for the reasons stated in the affidavit filed<br \/>\n\talong with the Judge&#8217;s Summons.\n<\/p>\n<p id=\"p_2\">\tSo<br \/>\n\tfar as Company Application No.232 of 2010 is concerned, Mr. G. L.<br \/>\n\tRawal, learned Senior Advocate appeared with Mr. Dipen Desai for the<br \/>\n\tapplicant.  In Company Application No.233 of 2010, learned advocate<br \/>\n\tMr. N.K. Pahwa appeared for the applicant.\n<\/p>\n<p id=\"p_3\">\tThe<br \/>\n\tremaining two applications being Company Application No.374 of 2010<br \/>\n\tand 225 of 2011 are filed by Selvel Minerals Private Limited for<br \/>\n\textension of time.\n<\/p>\n<p id=\"p_4\">\tIt<br \/>\n\tis the say of the applicants that land bearing Plot No.91<br \/>\n\tadmeasuring 29,000 Sq. Mts. is situated in Meghnagar Industrial<br \/>\n\tEstate, Dist. Jhabua (MP).  Before making the bid, the auction<br \/>\n\tpurchasers had made inspection of the properties and had also seen<br \/>\n\tthe valuation report made by Shri Mukesh Thakkar, who is the valuer<br \/>\n\tappointed by Bank of Baroda.  Two properties of the Company in<br \/>\n\tliquidation were put to sale under the same advertisement by the<br \/>\n\tOfficial Liquidator.  One is the old factory premises and the other<br \/>\n\tone is the new factory premises of the Company in liquidation.  The<br \/>\n\tValuation report in respect of Plot No.91 dated 06.08.2009 inter<br \/>\n\talia states that Plot No.91 of the Meghnagar Industrial Estate<br \/>\n\tconsists of old factory premises of the Company in liquidation.  On<br \/>\n\tthe other hand, the valuation report prepared by same Valuer in<br \/>\n\trespect of Plot Nos.64 to 69 and 77 to 84 of the same Industrial<br \/>\n\tEstate inter alia states<br \/>\n\tthat the new factory premises of the Company in liquidation is<br \/>\n\tsituated in these plots.  On the premises of both the properties,<br \/>\n\tthere is no specific mention made as to the Plot No.  Therefore, the<br \/>\n\tapplicants relied upon the valuation report made by the Valuer for<br \/>\n\tthe purpose of identification and location of the factory premises<br \/>\n\tin which they were interested.\n<\/p>\n<p id=\"p_5\">\tIt<br \/>\n\tis also the say of the applicants that the above properties of the<br \/>\n\tCompany in liquidation were offered for sale by the office of the<br \/>\n\tOfficial Liquidator.  The applicant of OJ Misc. Civil Application<br \/>\n\tNo.233 of 2010 wanted to purchase the new unit so as to restart new<br \/>\n\tunit without much waiting period.  The old factory premises is not<br \/>\n\tat all suitable for undertaking any manufacturing activities.  The<br \/>\n\tsaid applicant possesses other plots which are close by the new unit<br \/>\n\tof the Company in liquidation.  It is only with a view to have an<br \/>\n\tintegrated project of Ferro-Alloys, the new unit of the Company in<br \/>\n\tliquidation is deemed to be the most appropriate one.  Considering<br \/>\n\tthe valuation report of the Valuer and since the said applicant<br \/>\n\twanted to make bid for the new unit, the auction purchaser of which<br \/>\n\tthe applicant is the nominee made bid for Lot B-IV on the belief<br \/>\n\tthat B-IV consists of the new unit.  Though the valuation report<br \/>\n\tgives reference to the old unit and the new unit of the Company in<br \/>\n\tliquidation together with the plot numbers, the advertisement issued<br \/>\n\tby the Official Liquidator did not make any mention of the old unit<br \/>\n\t\/ new unit against the respective plot numbers.  Accordingly, Sandal<br \/>\n\tWood Infratech Pvt. Ltd., made bid for Lot B-IV on the strength of<br \/>\n\tthe valuation report.  This Court confirmed the sale in favour of<br \/>\n\tthe said Sandal Wood Infratech Pvt. Ltd. in respect of the<br \/>\n\tproperties of Lot B-IV for a consideration of Rs.7.20 Crores whereas<br \/>\n\tsale in favour of Selvel Minerals Private Limited in respect of the<br \/>\n\tproperties of Lot A-IV for consideration of Rs.6 Crores was<br \/>\n\tconfirmed.\n<\/p>\n<p id=\"p_6\">\tIt<br \/>\n\tis the further say of the applicants that after the sale was<br \/>\n\tconfirmed by this Court, certain payments were made by the<br \/>\n\trespective applicants in respect of the properties forming part of<br \/>\n\ttheir respective lots. However, when the actual inspection was taken<br \/>\n\tby the applicant of OJ Misc. Civil Application No.233 of 2010, it<br \/>\n\twas found that the properties covered by lot A-IV and properties<br \/>\n\tcovered by Lot B-IV are required to be exchanged.  Both the<br \/>\n\tapplicants have inter-se decided to exchange the said lots.<br \/>\n\tHowever, sanction of the Court is required for such inter-se<br \/>\n\texchange and hence, both the applicants have made the present<br \/>\n\tapplications before this Court.\n<\/p>\n<p id=\"p_7\">\tIt<br \/>\n\tis the say of learned Counsel appearing for the respective parties<br \/>\n\tthat if the prayers made by them in these two applications are<br \/>\n\tgranted, no prejudice would be caused to the Official Liquidator nor<br \/>\n\tany of the Secured Creditors.  They have also undertaken before this<br \/>\n\tCourt that they are ready and willing to make the entire payment of<br \/>\n\tconsideration in respect of Lot A-IV and B-IV respectively, as per<br \/>\n\tthe order made by this Court.  Considering this submission, the<br \/>\n\tCourt has passed orders from time to time and made it clear that<br \/>\n\trequest for exchange of lots amongst themselves be considered only<br \/>\n\tafter full payment is made by them.\n<\/p>\n<p id=\"p_8\">\tSo<br \/>\n\tfar as Anik Ferro-Alloys Private Limited is concerned, the payment<br \/>\n\tof Rs.6 Crore was made in time.  However, Selvel Minerals Private<br \/>\n\tLimited sought extension of time by moving two separate applications<br \/>\n\tbeing Company Application Nos.374 of 2010 and 225 of 2011 and this<br \/>\n\tCourt has granted time subject to payment of interest @ 18%.<br \/>\n\tAccordingly, full payment is now made by them by bringing the Demand<br \/>\n\tDrafts covering the balance amount of sale consideration as well as<br \/>\n\tinterest.  The payment so made by them put together covers the<br \/>\n\tentire amount of sale consideration of both the lots i.e. Lot A-IV<br \/>\n\tand B-IV.  The delay caused in making payment is compensated by way<br \/>\n\tof interest charged @ 18% which is also paid by them to the Official<br \/>\n\tLiquidator.  Since the entire amount along with interest is paid by<br \/>\n\tthe auction purchaser and the Official Liquidator has confirmed this<br \/>\n\tfact subject to verification, the request for exchange of lots is<br \/>\n\tconsidered by the Court.\n<\/p>\n<p id=\"p_9\">\tThe<br \/>\n\tOfficial Liquidator has filed his report and denied the facts that<br \/>\n\tthere was any confusion in mentioning Lot A-IV and B-IV.  He has<br \/>\n\talso called for the report of the concerned Valuer who has also<br \/>\n\tsubmitted that there was no identification by old factory and new<br \/>\n\tfactory.  Lastly, it was submitted by the Official Liquidator that<br \/>\n\tdispute was raised by the applicants only with a view to gain time<br \/>\n\tfor paying sale consideration or for some other purposes.  He has,<br \/>\n\ttherefore, submitted that prayers made in the applications should<br \/>\n\tnot be granted.\n<\/p>\n<p id=\"p_10\">\tHaving<br \/>\n\theard learned Counsel appearing for the parties and having<br \/>\n\tconsidered their rival submissions, the Court is of the view that<br \/>\n\tthe Court has passed common order while confirming the sale in<br \/>\n\tfavour of the respective parties so far as Lot A-IV as well as B-IV<br \/>\n\tis concerned. It is also an admitted position that both the lands<br \/>\n\twere sold for a total consideration of Rs.13.20 Crores.  The said<br \/>\n\tamount has been received now by the Official Liquidator along with<br \/>\n\tthe payment of interest @ 18%.  Thus, so far as the receipt of sale<br \/>\n\tconsideration is concerned, the Official Liquidator has received<br \/>\n\tfull amount.  It is of not much importance as to whether a<br \/>\n\tparticular lot is confirmed in favour of A or B.  Moreover, all the<br \/>\n\tthree concerns, namely, the original auction purchasers as well as<br \/>\n\ttheir Nominees are of the same Management.  It is their inter-se<br \/>\n\tarrangement as to which entities is purchasing which Unit.<br \/>\n\tConsidering the overall view of the matter and since no prejudice is<br \/>\n\tcaused to any party, the Court hereby accepts the submissions of<br \/>\n\tlearned Counsel appearing for the applicants and grants the prayers<br \/>\n\tmade therein.  Accordingly, applicant of OJ Misc. Civil Application<br \/>\n\tNo.232 of 2010 is permitted to own and possess the properties<br \/>\n\tcovered by Lot No. B-IV instead of Lot No. A-IV and the applicant of<br \/>\n\tOJ Misc. Civil Application No.233 of 2010 is permitted to own and<br \/>\n\tpossess the properties covered by Lot No. A-IV instead of Lot No.<br \/>\n\tB-IV.  The Official Liquidator shall accordingly handover the<br \/>\n\tpossession to the respective applicants after ascertaining the fact<br \/>\n\tthat the entire sale consideration with the interest due and accrued<br \/>\n\tthereon is received and thereafter execute the Sale Deed in favour<br \/>\n\tof the respective applicants after prior sanction of this Court.<br \/>\n\tThe Official Liquidator is further directed to appropriate the<br \/>\n\tamount of sale consideration and interest received by him by making<br \/>\n\tsuitable accounting entries.\n<\/p>\n<p id=\"p_11\">\tWith<br \/>\n\tthese directions and observations, both these applications are<br \/>\n\taccordingly disposed of.\n<\/p>\n<p id=\"p_12\">\tSince<br \/>\n\tmain applications seeking inter-se change of properties are<br \/>\n\tdisposed off and since the entire sale consideration is paid off,<br \/>\n\tthe remaining two applications i.e. Company Application Nos.374 of<br \/>\n\t2010 and 225 of 2011 no longer survive and they are accordingly<br \/>\n\tdisposed off.\n<\/p>\n<p id=\"p_13\">\t\t\t\t\t\t\t\t\tSd\/-\n<\/p>\n<p id=\"p_14\">\t\t\t\t\t\t\t\t[K. A. PUJ, J.]<\/p>\n<p>Savariya<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Selvel vs Official on 1 July, 2011 Author: K.A.Puj, Gujarat High Court Case Information System Print OJMCA\/232\/2010 10\/ 10 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD MISC. CIVIL APPLICATION No. 232 of 2010 In OFFICIAL LIQUDATOR REPORT No. 20 of 2010 In COMPANY PETITION No. 69 of 2002 With COMPANY [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-259431","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Selvel vs Official on 1 July, 2011 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/selvel-vs-official-on-1-july-2011\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Selvel vs Official on 1 July, 2011 - Free Judgements of Supreme Court &amp; 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