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2005 DIGILAW 828 (GUJ)

TEXTILE LABOUR ASSOCIATION v. I. F. C. I.

2005-12-09

AKIL KURESHI, K.M.MEHTA

body2005
K. M. MEHTA, J. ( 1 ) TEXTILE Labour Association, appellant, has filed this appeal against the judgment and order dated 25th august, 1998, passed by this Court in Civil application No. 147 of 1998 with Company Application no. 265 of 1998 in Misc. Civil Application No. 6 of 1992 i. e. , in the case of Industrial Finance corporation India Vs. O. L. Of Amruta Mills Ltd. ( 2 ) MR. D. S. VASAVADA, learned advocate appeared for the appellant " Textile Labour Association. He has invited our attention to the following facts:1. The appellant submits that by an order dated 22nd November, 1991, in Company Petition No. 72 of 1991, the Amruta Mills Ltd. , was ordered to be wound up by this Court. Pursuant to the order dated 12th March, 1997, passed by this Court in misc. Civil Application No. 6 of 1992, the assets of the Amruta Mills Ltd. (in liquidation) (hereinafter referred to as "the Company"), other than lands and buildings of the Company have been sold at a public auction. The sale was conducted under the recovery application filed by the Industrial Finance Corporation of India ltd. (IFCI) under the provisions of Sec. 30 of the Industrial Finance Corporation Act, 1948 (hereinafter referred to as "the Act" ). The sale was conducted by the Sale Committee appointed by the Court. The sale committee comprised of the official Liquidator, a representative of the textile Labour Association (TLA), representatives of Industrial Development Bank of India (IDBI), Industrial Credit and investment Corporation of India Ltd. (ICICI), industrial Investment Bank of India (IIBI) and punjab National Bank (PNB) and the IFCI. The sale Committee was headed by the representative of the applicant-IFCI. 2. The offers were invited through the advertisements in the leading Newspaper dated 5. 6. 1998. The plant and machinery and miscellaneous fixed assets, other than land and buildings were valued at Rs. 2. 67 crores. The earnest Money Deposit was fixed at Rs. 30 lacs. The offers were opened on 6. 7. 1998. In all, 39 offers were found valid and the three highest offers received on 6. 7. 1998 were as under:- name of the Party Amount offered (Rs. in crores) 1. Amatya Enterprise (P) Ltd. 1. 51 2. Aerotex Industries 1. 22 3. Monotex Corporation 1. 20 (3)At the auction held on 8. 7. 7. 1998. In all, 39 offers were found valid and the three highest offers received on 6. 7. 1998 were as under:- name of the Party Amount offered (Rs. in crores) 1. Amatya Enterprise (P) Ltd. 1. 51 2. Aerotex Industries 1. 22 3. Monotex Corporation 1. 20 (3)At the auction held on 8. 7. 1998, the offerers present were requested to raise their offers upwards. After the bidding at the auction, the bids of the following three parties were found to be the highest:- 1. M/s. Shri Rajeshwari Textiles Co. Rs. 2. 41 crores 2. Amatya Enterprises (P) Ltd. Rs. 2. 38 crores 3. Aerotex Industries Rs. 2. 34 crores (4)The Sale Committee felt that the offers received were less than the value mentioned in the valuation report on account of several factors. 5. In Civil Application No. 147 of 1998, the IFCI through its representative as Chairman of the sale Committee has sought permission of this court to accept the offer of M/s. Rajeshwari textiles Co. , for purchasing the plant and machinery and other miscellaneous fixed assets excluding lands and buildings for Rs. 2. 41 crores being the highest offer. 6. Thereafter M/s. Rajeshwari Textile Co. , (hereinafter referred to as "the purchaser" for the sake of convenience) filed a Company application No. 265 of 1998 praying for confirmation of sale in favour of the said party and with a request that it may be permitted to make payment of full consideration within a period of three months from the date of acceptance of the bid and permission to lift the goods within a period of six months from the date of last payment and certain other prayers are also made. 7. It appears that thereafter the Court has accepted the offer of M/s. Rajeshwari Textile co. , in the sum of Rs. 2. 41 crores in this behalf. The said offer was accepted on certain terms and conditions mentioned in the order confirming the sale in this behalf. 8. After that the IFCI also prayed in Civil application No. 147 of 1998 that the costs set out in Annexure "c" to the application incurred by the applicant be paid to the IFCI and that all such payments have priority over other payments that may be required to be paid from out of sale proceeds. The amount claimed by the ifci are as under:-