{"id":63733,"date":"2008-11-17T00:00:00","date_gmt":"2008-11-16T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/citizens-vs-ol-on-17-november-2008"},"modified":"2019-01-28T06:53:26","modified_gmt":"2019-01-28T01:23:26","slug":"citizens-vs-ol-on-17-november-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/citizens-vs-ol-on-17-november-2008","title":{"rendered":"Citizens vs Ol on 17 November, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Citizens vs Ol on 17 November, 2008<\/div>\n<div class=\"doc_author\">Author: K.A.Puj,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\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\n\n \n\n\n\t \n\nCOMA\/214\/2008\t 4\/ 4\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nCOMPANY\nAPPLICATION No. 214 of 2008\n \n\nIn\n\n\n \n\nCOMPANY\nAPPLICATION No. 533 of 2007\n \n\nIn\nCOMPANY APPLICATION No. 138 of 2007\n \n\n=========================================================\n\n\n \n\nCITIZENS\nCO-OP. BANK LTD. - Applicant(s)\n \n\nVersus\n \n\nOL\nOF SAFFRON CERAMICS PVT. LTD. &amp; 2 - Respondent(s)\n \n\n=========================================================\n \nAppearance : \nM\/S\nTHAKKAR ASSOC. for Applicant(s) : 1, \nOFFICIAL\nLIQUIDATOR for Respondent(s) : 1, \nMR NITIN K MEHTA for\nRespondent(s) : 1, \nMS JAGRUTI A PARMAR for Respondent(s) :\n2, \nNOTICE NOT RECD BACK for Respondent(s) :\n3, \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: 17\/11\/2008 \n\n \n\n \n \nORAL\nORDER<\/pre>\n<p>The<br \/>\n\tApplicant Bank has taken out this Judge&#8217;s Summons seeking<br \/>\n\tconfirmation of sale of property being Land bearing Revenue Survey<br \/>\n\tNo.101\/1 and 101\/2 paiki admeasuring 12232 sq. mtrs. situated at<br \/>\n\tMakansar, Taluka Morbi as well as machinery in favour of the highest<br \/>\n\tbidder, i.e. Mr. Bharatkumar M. Dhoriyani, the respondent no.2<br \/>\n\therein for Rs.1,65,00,000\/=.\n<\/p>\n<p>An<br \/>\n\taffidavit is filed by Mr. Ramesh Gamot in support of Judge&#8217;s<br \/>\n\tSummons.  Mr. N.K. Pahwa, the learned advocate appearing for the<br \/>\n\tapplicant has submitted that the Applicant Bank has exclusive charge<br \/>\n\tby way of mortgage in respect of the property being immovable<br \/>\n\tproperty covered by factory building, its machineries including land<br \/>\n\tbearing Revenue Survey No.101\/1 and 101\/2 paiki admeasuring 12232<br \/>\n\tsq. mtrs. situated at Makansar, Taluka Morbi.  It is submitted that<br \/>\n\tas the Company in liquidation committed default in payment of dues<br \/>\n\tof the applicant bank, the applicant bank initiated proceedings<br \/>\n\tunder the Securitisation and Reconstruction of Financial Assets<br \/>\n\tEnforcement of Security Interest Act, 2002.  He further submitted<br \/>\n\tthat under due procedure of the Act, the applicant bank took over<br \/>\n\tpossession of the said property on 16.10.2006.  By an Order dated<br \/>\n\t14.12.2006, this Court in Company Petition No.5\/2006 has wound up<br \/>\n\tthe Company in liquidation and the Official Liquidator attached to<br \/>\n\tthis Court has been appointed as the Liquidator of the Company in<br \/>\n\tliquidation.  The OJ Appeal filed against the said order of the<br \/>\n\tLearned Single Judge was also dismissed by the Division Bench of<br \/>\n\tthis Court.  He further submitted that earlier the Applicant bank<br \/>\n\thas moved Company Application No.533\/2007 seeking to participate in<br \/>\n\tthe auction proceedings alongwith other bidders.  This Court vide<br \/>\n\tits Order dated 13.12.2007 permitted the Applicant Bank to<br \/>\n\tparticipate in the auction.  However the said participation would<br \/>\n\tnot amount to confirmation of sale in favour of the Bank.  He has<br \/>\n\tfurther submitted that as per the Order of this Court,<br \/>\n\tadvertisements were issued in the newspapers ?SPhool Chhab?? and<br \/>\n\t?SIndian Express?? fixing the upset price of the property at<br \/>\n\tRs.1.90 Crores.  Thereafter the applicant Bank has filed another<br \/>\n\tCompany Application No.99\/2008 requesting this Court to fix the<br \/>\n\tupset price at Rs.1,63,11,000\/=.  Advertisements were issued<br \/>\n\tpursuant to the Order of this Court.  Offer was received from<br \/>\n\tRespondent No.2, Mr. Bharatkumar M. Dhoriyani for Rs.1.65 Crores.\n<\/p>\n<p>Initially<br \/>\n\tthis Court has issued Notice on 27.03.2008.  Thereafter several<br \/>\n\torders were passed from time to time.  During the pendency of this<br \/>\n\tapplication, one Mr. S.P. Multani wrote a letter to the Official<br \/>\n\tLiquidator and made an offer of Rs.2 Crores.  The Court has directed<br \/>\n\thim to deposit the amount of Rs.20 Lacs.  However he did not turn up<br \/>\n\tthereafter.  A fax message dated 17.11.2008 is received from Mr.<br \/>\n\tS.P. Multani stating that it is not possible to purchase the said<br \/>\n\tproperty looking to the present market condition and he expressed<br \/>\n\this intention to purchase the said property at 50% of his initial<br \/>\n\toffer.\n<\/p>\n<p>In<br \/>\n\tthe above view of the matter, it appears that the offer made by the<br \/>\n\tpresent respondent no.2 is just and proper.  Despite repeated<br \/>\n\tadvertisement, no higher offer has been received.  The Court<br \/>\n\ttherefore, accepts the offer made by respondent no.2 and confirms<br \/>\n\tthe sale of the property in question in favour of respondent no.2,<br \/>\n\tsubject to the terms and conditions set out in the Tender document.\n<\/p>\n<p>Until<br \/>\n\tfull and final payment is received, the possession of the property<br \/>\n\twill remain with the Official Liquidator.  After that, final Sale<br \/>\n\tDeed shall be executed in favour of respondent no.2  At the time of<br \/>\n\texecution of Sale Deed, the original documents like Title of the<br \/>\n\tproperty should be handed over to respondent no.2.  The amount of<br \/>\n\tthe sale consideration should be kept in a separate account and the<br \/>\n\tsaid amount should be disbursed as per the Order of this Court.  The<br \/>\n\tRespondent no.2 is permitted to appoint one nominee of his choice,<br \/>\n\tif he so desires.\n<\/p>\n<p>Subject<br \/>\n\tto the aforesaid directions and observations, this Company<br \/>\n\tApplication is accordingly disposed off.\n<\/p>\n<p>(K.A.\n<\/p>\n<p>Puj, J.)<\/p>\n<p>Caroline<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Citizens vs Ol on 17 November, 2008 Author: K.A.Puj,&amp;Nbsp; Gujarat High Court Case Information System Print COMA\/214\/2008 4\/ 4 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD COMPANY APPLICATION No. 214 of 2008 In COMPANY APPLICATION No. 533 of 2007 In COMPANY APPLICATION No. 138 of 2007 ========================================================= CITIZENS CO-OP. BANK [&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-63733","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 v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Citizens vs Ol on 17 November, 2008 - 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\/citizens-vs-ol-on-17-november-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Citizens vs Ol on 17 November, 2008 - Free Judgements of Supreme Court &amp; 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