Case Note & Summary
The Official Liquidator appointed over M/s. Akola Oil Industries Ltd. (in liquidation) filed reports seeking confirmation of auction sales held on 9-11-2012 for 39 properties sold on 'as is where is basis' and 'as is whatever basis'. The auction was conducted pursuant to an order dated 13-4-2012 passed by the Bombay High Court. The highest bids for all properties were accepted subject to court confirmation. On 15-2-2013, the court directed the Official Liquidator to issue communications to each bidder specifying the exact balance amount required to be deposited, and upon receipt of such notice, the bidders were to deposit the amount within 15 days. The court then ordered that upon receipt of the deposits, the Official Liquidator should submit a further report for final orders. The judgment primarily deals with the procedural direction for deposit of balance bid amounts to facilitate confirmation of the auction sales.
Headnote
A) Company Law - Liquidation - Confirmation of Auction Sale - Companies Act, 1956 - Official Liquidator's report for confirmation of auction sale of properties of M/s. Akola Oil Industries Ltd. - Court directed bidders to deposit balance bid amount within 15 days of receiving communication from Official Liquidator specifying the exact amount - Held that the highest bidders are required to deposit the balance amount for confirmation of sale (Paras 1-2).
Issue of Consideration
Whether the auction sale of properties of a company in liquidation should be confirmed and the bidders directed to deposit the balance amount.
Final Decision
The court directed that the highest bidders are required to deposit the balance amount of the bid price. The Official Liquidator shall issue communication to each bidder specifying the exact amount to be deposited, and upon receipt of such notice, the bidders shall deposit the amount within 15 days. After receipt of the amount, the Official Liquidator shall submit his report before the court for further orders.
Law Points
- Confirmation of auction sale
- deposit of balance bid amount
- Official Liquidator's report
- company liquidation
