Case Note & Summary
The appeal was directed against an interlocutory order of the Special Court under the Special Courts (Trial of Offences Relating To Transactions in Securities) Act, 1992, concerning the sale of certain properties for the recovery of dues. The appellants, Cifco Properties Pvt. Ltd. & Ors., did not dispute the liability of the properties to be sold but contested the appointment of the Custodian to conduct the sale, arguing that the High Court Receiver should handle the proceedings instead. The Special Court had initially directed the High Court Receiver to conduct the sale, but due to delays attributed to the Receiver's workload, the Custodian was appointed to ensure the sale proceeded efficiently. The appellants contended that the Custodian's role was adversarial and that necessary precautions for the sale, including the determination of a reserve price, were not being observed. The Court, however, found that the Custodian was fulfilling its duties appropriately and that the sale process was designed to protect the interests of all parties involved. The Court referenced previous decisions to support its conclusion that the Custodian's involvement was standard practice and that the appellants would still have the opportunity to contest the final bids before the Special Court. Ultimately, the appeal was dismissed, and the interim stay order was vacated, allowing the sale proceedings to continue as planned.
Headnote
A) Special Courts Act, 1992 - Sale Proceedings - Role of Custodian - The Court upheld the decision of the Special Court to allow the Custodian to conduct the sale of properties, finding no justification for interference with the interlocutory order. The appellants' concerns regarding the Custodian's adversarial role were deemed insufficient to warrant a change in the sale process, as the Custodian was following established procedures to ensure maximum price realization (Paras 1-3).
Issue of Consideration
Whether the sale proceedings should be conducted by the Custodian or the High Court Receiver.
Final Decision
The Supreme Court dismissed the appeal, allowing the sale proceedings to continue under the Custodian's management and vacated the interim stay order.
Law Points
- Interlocutory orders
- Role of Custodian
- Sale of properties
- Special Courts Act
- 1992
- Valuation of properties
