Judgment ( 1. ) THIS matter relates to winding up of a company - M/s. Hukumchand Mills Limited. By order dated 22-1-2003, this Court has ordered for winding up of this company under the supervision of this Court pursuant to a reference made by B. I. F. R. (Reference Case No. 194 of 1987) on 11-9-1991 under Section 20 (2) of SICA whereby it was finally opined that the company in question cannot be rehabilitate nor can be run as a commercial solvent company. It was, therefore, opined that this is a fit case for winding up and accordingly, the matter was referred to this Company Court by the BI. F. R. as per requirements of Section 20 (2) of SICA for passing the final winding up order because power to wind up any company rests with the company court under the Companies Act. Accordingly, as observed supra, this Court on 22-1-2002 passed the winding up order and appointed official liquidator to take charge and possession of the assets of the company to enable this Court to ensure its proper disposal. ( 2. ) ON 21 -3-2003, this Court had permitted the official liquidator to sell Raw material and cloth in stock lying for more than a decade in companies. A detailed order was passed by this Court whereby this Court appointed a Sale Committee consisted of one representative of Bank of India (secured creditor of Company), one from State Bank of Indore, one from IDBI (Financial Institution) one from Labour Union and Official Liquidator. This Committee was asked to prepare the inventory of the entire stock to be sold and get its valuation done. This court then directed that wide publicity in national papers such as Indian Express (all Editions ). The Hindu (all editions), Economic Times, Dainik Bhaskar (Indore Edition) and Nai Dunia (Indore Edition) be given specifying therein the details of goods put for sale to enable the intending purchaser/tenderers to submit his/their proper offer. ( 3. ) ACCORDINGLY, the sale committee convened its meeting on 31-3-2003 and appointed one M/s. O. K. Jain and Co. (Assessors and Valuers) for inspecting the goods put for sale and submit their valuation report in sealed cover. In terms of the directions given by this Court, the publicity for sale of goods were given in the papers (Anncxurcs B-1 to B-23 of O. L. report, dated 25-6-2003 ). ( 4. (Assessors and Valuers) for inspecting the goods put for sale and submit their valuation report in sealed cover. In terms of the directions given by this Court, the publicity for sale of goods were given in the papers (Anncxurcs B-1 to B-23 of O. L. report, dated 25-6-2003 ). ( 4. ) AS per the report of Official Liquidator (dated 25-6-2003) as many as 21 parties submitted their tenders/offers. It was found by the Sale Committee that the highest offer submitted by one of the tenderer was for Rs. 2,52,00,000. In terms of the directions given by this Court, the Committee was allowed to hold negotiations with every tenderer in presence of all for increasing their offer. In this process, one tenderer - M/s. Varun Tcxport pvt. Ltd. Mumbai raised their bid for Rs. 4,21,50,000. Since, no other tenderer quoted more than the amount quoted by M/s. Varun Texport Pvt. Ltd. , the tender process was closed. The matter is now placed before this Court for seeking approval of the bid. ( 5. ) IT may be mentioned that one tenderer M/s. Dhiraj Cotton Waste Company has now applied to this Court by submitting an application (I. A. No. 2114 of 2003) stating therein that they are prepared to offer more bid amount than the one offered by M/s. Varun Texport Pvt. Ltd. According to them, they are now prepared to pay Rs. 10,00,000 more. They also pray that they may be given inspection of the goods also which they could not get. ( 6. ) IN my view, the highest bid submitted by M/s Varun Texport Pvt. Ltd. , Mumbai for Rs. 4,21,50,000 deserves to be accepted. It is on record that the valuation done by the Sale Committee of the goods much earlier to the receipts of the offers reveals that it is valued at Rs. 2,99,23,800 (See minutes of Sale Committee Annexure P-7 ). There is no reason to doubt the correctness of the valuation report of the expert as it was got done by the secured creditors who are all Banks and Financial Institutions. It has also come on record that adequate publicity was given for sale in all India Papers and actually 21 parties from various parts of the Country responded for submission of their offers. It has also come on record that adequate publicity was given for sale in all India Papers and actually 21 parties from various parts of the Country responded for submission of their offers. The Sale Committee which consists of experts in commercial and financial matters representing Nationalised Banks and Institutions have scrutinised the tenders and also held adequate and inter se negotiations for ensuring best price of the goods to safeguard their own interest as also that of the company. Indeed, it has yielded positive results because the committee was able to get much more price of the goods as compared to what was initially bid in the offers. The highest bid amount is much more as compared to the amount mentioned in valuation report referred supra. Taking into account the perishable nature of the goods lying in closed factory for a decade, the interest of creditors, who are the members of the Sale Committee and have also consented for acceptance of the highest bid. In my opinion, there does not appear any impediment in accepting the highest offer of M/s. Varun Texport Pvt. Ltd. , Mumbai for Rs. 4,21,50,000. It is also a case where every tenderer including M/s. Dhiraj Cotton Waste Company got full and adequate opportunity to increase their bid which actually they did in negotiations process. It is now too late for them to come forward in court and increase their offer. No body prevented them from increasing their offer at the time when negotiations were actually going on before the Sale Committee in presence of all the tenderers. In fact, it is only for this purpose, the Sale Committee consisting of experts in the field was constituted by this Court so that they may hold negotiations with the tenderers at one place. The Courts are not meant to hold this type of exercise only because one tenderer has come forward. In fact, entertaining one tenderer would not be proper because it will amount to denying other tenderers an opportunity to participate in this process. If the application of this tenderer is entertained, it will be an endless process. Even the courts have deprecated this type of bidding in court rooms because it then becomes a place of auction Pandal. It is not a case where this tenderer was not afforded an opportunity to bid and/or participate in negotiations. If the application of this tenderer is entertained, it will be an endless process. Even the courts have deprecated this type of bidding in court rooms because it then becomes a place of auction Pandal. It is not a case where this tenderer was not afforded an opportunity to bid and/or participate in negotiations. It is a case where this tenderer actually participated in all tender process and even increased their bid as against the highest bidder. It is clear when one sees the minutes of the sale process. As per O. L. report, dated 10-7-2003/15-7-2003, this tenderer had also asked the Official Liquidator to refund their earnest money after the bid process was over and they declined to raise their offer finding that they could not get the goods. ( 7. ) I, therefore, do not find any case to entertain the application (I. A. No. 2114 of 2003) made by M/s. Dhiraj Cotton Waste Company so belatedly made and accordingly reject the same. ( 8. ) AS a consequence, this Court accord sanction to the highest bid of M/s. Varun Texport Pvt. Ltd. Mumbai for Rs. 4,21,50,000 and accordingly direct the Official Liquidator to give delivery of the goods for which the bid was offered. It is directed that the payment of Rs. 4,21,50,000 must be obtained by Official Liquidator by A/c payee Draft or Bankers Cheque for Rs. 4,21,50,000 and then the delivery of the goods be effected after proper verification and as per inventory. The payment received be deposited in bank account forthwith, the Official Liquidator should return the earnest money of all other tenderers forthwith. The compliance report be submitted by next date of hearing. Let the case be listed for 1-8-2003. Dated 1-8-2003. ORDER 1. Report of O. L. dated 29-3-2003. 2. Perused. 3. This is a case received by this Court pursuant to the recommendations made by the B. I. F. by way of reference made to this Court under Section 20 (2) of SICA. 4. A prayer is made by Official Liquidator for sale of the asset of the Company in liquidation. These assets are one flat situated at Mumbai, Plant, Machinery, land and building belonging to company in liquidation and situated at Indore. 4. A prayer is made by Official Liquidator for sale of the asset of the Company in liquidation. These assets are one flat situated at Mumbai, Plant, Machinery, land and building belonging to company in liquidation and situated at Indore. It is prayed that these assets are lying unattended since a last decade but no efforts were made to dispose any of these though the Company is in liquidation. It is contended that these assets can be sold without their being any legal impediment so as to enable the Official Liquidator to realise its price for being distributed amongst the various categories of the creditors of the Company and which will eventually allow this Court to pass final winding up order in relation to the Company in liquidation. 5. In my opinion, the prayer made by the Official Liquidator deserves to be granted, It is accordingly granted. 6. The Official Liquidator is accordingly directed to issue necessary advertisement in all India National Newspapers such as: (1) Indian Express (All Editions), (2) Economics Times, (3) Times of India (All Editions), (4) Hindu (All Editions), (5) Dainik Bhaskar (Indore Edition), (6) Nai Duniya (Indore Edition), (7) Maharashtra Times (Mumbai Editions ). The advertisement will give correct and actual description as also details of the property meant for sale so that every buyer may know exactly as to what are the properties put for sale. In addition, one separate advertisement be also issued only for the disposal of flat in the papers having circulation in Mumbai and for properties in Gujarat, the same may be published in regional language in addition to English language having circulation in the area where the property of Company is situated. 7. It has come on record that there are several secured creditors of the Company in liquidation such as IDBI, HBI, State Bank of India and State Bank of Indore. These are all financial institutions who have advanced substantial amount to the Company and have also to recover their legal dues from whatever legal sources available including sale of properties. These Creditors have also given their no objection for sale of these properties which were either under hypothecation and pledged with these creditors on account of advance made by them. These are all financial institutions who have advanced substantial amount to the Company and have also to recover their legal dues from whatever legal sources available including sale of properties. These Creditors have also given their no objection for sale of these properties which were either under hypothecation and pledged with these creditors on account of advance made by them. Accordingly, it is ordered that a Sale Committee be constituted which will consist of one representative from IDBI, IIBI, State Bank of India, State Bank of Indore, one representative representing recognised Union of the Company in liquidation and the Official Liquidator. The Sale Committee so constituted will hold negotiations in presence of all tenderers with a view to ensure that best maximum sale price is obtained out of sale of the assets of the Company wherever they are situated. The Valuation of the entire assets of the company which has been got done by the Official Liquidator shall remain in sealed cover and it shall be opened only after the negotiations are completed in presence of all the members of the Sale Committee, with a view to find out whether price received is adequate or not? 8. So far as the property i. e. , Flat No. 44 situated in a building known as Mittal Chambers, Nariman Point, Mumbai, is concerned the Official Liquidator is authorised to break open the look of the premises and retain its possession till it is disposed of as directed by this Court by way of sale. The Official Liquidator also authorised to make payment to the Society towards the maintenance charges of the said flat to the concerned Society as demanded by them by their letter dated 2-4-2003, Annexure A/3, annexed to the Report dated 27-6-2003 being O. L. R. No. 8/2003. ( 9. ) LET these formalities be completed within two months. Official Liquidator is to inform to the creditors referred above for doing needful. Fees of the Valuer shall be shared between the Official Liquidator and the creditors in equal share and payment be accordingly made to valuer. ( 10. ) SHRI Satpal Singh, L/o for M/s. Pasari Textile Pvt. Ltd. has submitted an application for release of their stock which according to him is lying in the premises of the Company in liquidation.