D. V. SHYLENDRA KUMAR, J. ( 1 ) COMPANY Application 25/2004 in Company Petition No. 17/1980 and other connected company petitions are filed by M/s. Karnataka State Finance Corporation who had been entrusted with the responsibility of selling the assets of the companies under liquidation through a public auction sale. ( 2 ) THE Applicant Corporation is also a secured creditor of the companies under liquidation and they were permitted to stand outside the winding up proceedings and to effect the sale of the assets over which they had a charge and that is how they have conducted the sale of the landed property and building of the companies under liquidation. ( 3 ) THE applicant Corporation got published the auction sale to be held on 19th December, 2003 as per paper publication issued on 1st December, 2003 in the news daily published at Bangalore. ( 4 ) THE reserve price of the properties was fixed at Rs. 7 crores. At the public auction held on 19th December, 2003 amongst various bidders the highest bid price was offered by M/s. ISKON charities, 17th respondent in this application and the price offered was Rs. 23. 20 crores. The sale itself was subject to the conditions published and notified amongst the bidders and is on as is where is basis. The bidder takes the properties with all such encumbrances which could have get attached to the properties and without any further assurance or guarantee on the part of the official Liquidator except for executing the sale deed in respect of the properties sold to the highest bidder. ( 5 ) THE applicant Corporation has received a sum of Rs. 5. 80 crores representing 25% of the price. Learned counsel appearing for the applicant Corporation as well as the highest bidder, 17th respondent submit that the highest bidder has to deposit the balance of the sale consideration within 30 days from the date of acceptance and approval by this Court of the highest bid amount as is offered by the 17th respondent, under such circumstances the applicant corporation has filed this Application praying for confirmation of the sale and permission to accept this amount from the 17th respondent M/s. ISKON Charities, Hare Krishna Hills, Chord road, Rajajinagar, Bangalore - 560 010. ( 6 ) . ( 6 ) . S. K. V. Chalapathy, learned counsel appearing for the 17th respondent in this application submits that the 17th respondent has also filed an independent application in C. A. 84/04 praying for similar relief of confirmation of the bid offered by them to purchase the properties at the price of Rs. 23. 20 crores. ( 7 ) I have heard Sri Deepak, learned counsel appearing for the Official Liquidator and it is submitted that though there were attempts to effect the sale of the properties of the companies under liquidation since in the year 1994, such efforts were not fruitful, that the price offered by bidders was not even touching the reserve price of Rs. 7 crores and as such the earlier attempts had become futile. Learned counsel for the Official Liquidator submits that it is only this time it has fetched a better price and it will be in the interest of all concerned connected with the companies under liquidation to accept this bid and confirm the sale, so that the amount of Rs. 23. 20 crores which is realised is available to the creditors of the companies under liquidation and for meeting the liabilities etc. ( 8 ) COMPANY Application No. 1961/2003 is filed in this proceeding by M/s. Shreeshyla co-operative Industrial Estate Ltd. , inter alia contending that the applicant was the promoter of the companies under liquidation, that it has a vital interest in the assets of the companies under liquidation, that the applicant was instrumental in getting the landed properties which is now sold through public auction allotted from Karnataka Industrial Area Development Board, that the applicant had set up several small scale industries in the land in question and various developments had taken place in this regard. However due to various difficulties all these companies came to be ordered to be wound up by the order passed by this Court on 26th July, 1985 and that is how proceedings have gone on before this Court, that the applicant is very keen on saving this property and repossessing the properties, that the price now offered may not reflect the true value of the properties in question and that the applicant was keen on preventing the properties of the companies under liquidation being put to sale and sold to any other party, that the applicant itself is keen on buying and to show bona fides, the applicant is willing to deposit the reserve prices of Rs. 7 crores with the Court and in this circumstances had sought for stay of the proceedings for the sale of the properties. ( 9 ) HOWEVER, the applicant had neither deposited Rs. 7 crores as offered in the application nor had this Court stayed the conduct of the auction sale. The application thus had become infructuous but had not been disposed of and had been tagged on without applications and has come up for orders along with these two applications referred to above. ( 10 ) THESE applications had come up for orders before the Court as on 12th February, 2004 and after hearing counsel for the parties in all these applications I had passed the following order : "sr. Gopal Hegde, learned counsel appearing for the respondent -Karnataka State Financial corporation (KSFC) files his client's objections in company application No. 1961/03. 2. Sr. Gopal Hegde, learned counsel appearing for the applicant in C. A. No. 25/2004 and Sr. S. K. V. Chalapathy, appearing for the auction purchaser the 17th respondent, who is also the applicant in C. A. No. 84/2004, who has made by the highest offer in the auction sale prays for permission to confirm the sale of the assets of the company under liquidation by accepting this highest bid. 3. Sr. Vishweshwara, learned senior counsel appearing for the applicant in C. A. No. 1961/03 submits that the applicant is keen on saving the property of the company under liquidation and develop that, and, that the applicant would demonstrate the bona fides of the applicant and for such purpose the applicant is prepared to deposit a sum of Rs. 25 crores with the respondent ksfc on or before 19th February 2004. 25 crores with the respondent ksfc on or before 19th February 2004. Learned counsel submits that the applicant is prepared to buy the property by paying a much better price than the highest offer that has been now received. 4. Sr. S. K. V. Chalapathy, learned counsel appearing for the highest bidder who has already paid rs. 5. 8 crores, submits that his client is prepared to improve on the bid, if situation needs the same and he is prepared to take the property even at an higher price. 5. This is an aspect, which can be considered later, only after the applicant demonstrates the bona fides on its part by depositing the sum of Rs. 25 crores before M/s. KSFC by or before 19th february, 2004. 6. It is also made clear that in the event it becomes necessary to ascertain as between the applicant and the present highest bidder viz. , M/s. ISKON Charities who is able to pay a better price for the property and in the event in such a process the property can be bought by the applicant, the applicant has to compensate M/s. ISKON Charities the expenses, losses or damages that they claim in connection with the transaction. Sr. Chalapathy to indicate this amount to the Court, as well as to the applicant by or before Thursday the 19th February 2004. 7. Applicant also to deposit a sum of Rs. 35 lakhs before this Court by or before Tuesday the 17th February 2004, the amount which had been deposited by all other bidders in the auction sale and insofar as this amount is concerned the conditions as had been published and notified earlier for the auction sale will hold good for this deposit also. 8. The amount of Rs. 25 crores as and when deposited by the applicant before M/s. KSFC, shall be held by the Corporation on behalf of the company under liquidation and the Corporation to abide by further orders to be passed by this Court in this proceeding. 9. Call these applications for further orders on Friday the 20th February 04. 10. Furnish a copy of this order to all the counsels, who have appeared for the parties in these applications. " ( 11 ) ALL these applications are heard today in the presence of Sr. 9. Call these applications for further orders on Friday the 20th February 04. 10. Furnish a copy of this order to all the counsels, who have appeared for the parties in these applications. " ( 11 ) ALL these applications are heard today in the presence of Sr. K. Gopal Hegde, learned counsel for the Karnataka State Finance Corporation, applicant in C. A. 25/04, Sri S. K. V. Chalapathy, learned counsel appearing for applicant in C. A. 84/04 who is also the highest bidder and Sri Girish Kodgi, learned counsel appearing for the applicant in C. A. No. 1961/03. ( 12 ) SRI K. Gopal Hedge, learned counsel appearing for the Finance Corporation has filed a memo stating that the applicant in C. A. No. 1961/03 has neither deposited the earnest money nor the entire amount of Rs. 25 crores as had been promised and directed by this Court with his client m/s. Karnataka State Financial Corporation. ( 13 ) . Girish Kodgi, learned counsel for the applicant in C. A. No. 1961/03 submits that the applicant is not in a position to enter into a competition with the highest bidder namely M/s. ISKON Charities who has vast resources and the applicant has no such resources and they are not keen on depositing any amount nor participating in such subsequent proceedings. ( 14 ) THE sale of the properties of the companies under liquidation was done after giving sufficient publicity and after publishing the sale in the local newspapers such as Economic Times, Hindu and Vijaya Karnataka published at Bangalore. The properties in question are located at bangalore. As many as 11 bidders participated and offered their bids. These are all matters which cannot be said not within the knowledge of applicant in company application No. 1961/03. In fact this applicant had come before the Court even before such developments and therefore the entire proceedings were within the knowledge of this applicant who is an applicant who has not shown any bona fide at all either by participating in the open auction or offering better price or bids. Even if the application had become infructuous an attempt was made by this applicant through its counsel by indicating that the applicant is still prepared to buy the properties for a better price and is keen on repossessing the properties. Even if the application had become infructuous an attempt was made by this applicant through its counsel by indicating that the applicant is still prepared to buy the properties for a better price and is keen on repossessing the properties. As a very exceptional case this Court deferred confirmation of sale in favour of the highest offer or bid when there was no reason not to confirm the sale and gave an opportunity to the applicant to show its bona fide and to look into the matter further. ( 15 ) UNFORTUNATELY the submission made today on behalf of the applicant is that the applicant is withdrawing from the proceedings. If at all the applicant in C. A. No. 1961/03 has acted only as a meddlesome interloper with ulterior motives only for the purpose of obstructing the proceedings before this Court. I am unable to appreciate such conduct on the part of the applicant. In these circumstances C. A. No. 1961/03 required to be dismissed levying exemplary cost to discourage such agencies, or such person/s from misusing the process of the Court and coming in the way of the normal proceedings before the Court with such application. C. A. No. 1961/2003 is dismissed with costs of Rs. 20,000. ( 16 ) . K. Gopal Hegde, learned counsel appearing for the K. S. F. C. in C. A. No. 25/03 submits that the Corporation is the loser due to the delay in the realisation of the proceeds of the sale particularly as the Corporation will be losing interest for the period in between and submits in the circumstances it is just and necessary that the cost should be awarded in favour of the corporation. ( 17 ) THE cost of Rs. 20,000 levied in this proceeding is payable to the Karnataka State Finance corporation in whose favour a certificate shall be issued by the Registry, on non payment of the amount by the applicant to the Corporation within 4 weeks from today and the same to be in the form of a decree passed by this Court. ( 18 ) IN the circumstances indicated above I am satisfied that the sale proceeds of Rs. 23. ( 18 ) IN the circumstances indicated above I am satisfied that the sale proceeds of Rs. 23. 20 crores represents a fair price for the properties sold in favour of the highest bidder, that the transaction of sale is not vitiated by any other irregularity or defect and this offer can be accepted and the sale is confirmed in favour of the highest bidder. e. , M/s. ISKON Charities, Krishna Hills, chord Road, Rajajinagar, Bangalore - 560 010. ( 19 ) THE Corporation is permitted to receive the balance of the sale consideration namely Rs. 17,40,00,000 (Rupees Seventeen Crores and Forty lakhs only) within 30 days from today. On such deposit the Corporation to seek further orders from this Court with regard to the manner of application of the funds as also for taking further steps in the matter. ( 20 ) BRING up for further orders after six weeks.