Research › Search › Judgment

Madras High Court · body

2012 DIGILAW 744 (MAD)

First Petitioner v. Second Respondent

2012-02-10

A.ARUMUGHASWAMY

body2012
JUDGMENT A.ARUMUGHASWAMY, J. 1. Pursuant to the order of this Court, dated 17.11.2011, publication was effected on 22.01.2012 in English Daily 'The Hindu' and in Tamil Daily 'Dhana Thanthi' to call for tenders through paper publication for conducting public auction for the sale of 167 residential and 6 commercial plots, totally 173 plots situated at Mahatma Gandhi Naar near Sunguvarchathiram, Kancheepuram District, in which, Lot No.I of residential plots 1 to 50 on 7.2.2012, Lot No.II of residential plots 51 to 100 on 8.2.2012 and Lot No.III of residential plots 101 to 167 and 6 non-residential plots on 9.2.2012 by fixing the upset price for Rs.250/- towards residential plots and Rs.300/- towards commercial plots. 2. Mr.M.Ravindran, learned Administrator for Ms/.Anubhav Plantations Private Limited, has represented that preference shall be given to the persons bid for the entire lots and accordingly the learned Official Administrator was directed to give preference to the persons bid for the entire plots. Accordingly, in the said publication also it was specifically mentioned that preference will be given to the persons who bid for the entire plots. 3. In response to the said publication, 12 intending purchasers have filed sealed tender forms along with Demand Drafts for EMD at the Office of the Registrar General of this Court and the said tenders have been placed before this Court on 07.02.2012. The sealed tenders are opened at 12.00 Noon on 07.02.2012 and the details of the tenders are listed below: Since all the tenderers were willing to participate in the auction on all three days, the matter was adjourned to 08.02.2012. 4. On 8.2.2012, apart from the above 12 tenders four more tenders have also been filed by the party-advocates in the open Court The details of the above tenders are given below:- 5. On 8.2.2012 Mr.M.Ravindran, learned Administrator and the advocates who are all representing their parties and their respective parties were also present. The intending purchasers who were present before the Court were willing to participate on the next day. Hence, the matter was adjourned to 09.02.2012. 6. Though the intending purchasers viz., Akshaya JMB Properties Pvt. Ltd., Chennai and Mr.P.Mani Gounder, Chennai, had intended to purchase the entire lots, they were not present in the Court on 9.2.2012 and it is represented that they are not willing to participate in the auction. Hence, the matter was adjourned to 09.02.2012. 6. Though the intending purchasers viz., Akshaya JMB Properties Pvt. Ltd., Chennai and Mr.P.Mani Gounder, Chennai, had intended to purchase the entire lots, they were not present in the Court on 9.2.2012 and it is represented that they are not willing to participate in the auction. Hence, at the request of the parties, the matter was adjourned by 3.00 p.m. on the same day expecting keen bid of the other persons. At that juncture, apart from 16 intending purchasers two more persons viz., Mr.P.Mani Gounder, Chennai and (2) M/s. AKR Holdings (P) Ltd., Chennai, have come forward with tender forms along with Demand Drafts for EMD to purchase the entire lots viz., 167 residential plots and 6 non-residential plots at the rate of Rs.250/-per sq. ft. At the time of filing tender form M/s AKR Holdings (P) Ltd., Channai, has enclosed two Demand Drafts (1) bearing No.046774 dated 9.2.2012 for Rs.50,00,000/-, (2) bearing No.044932 dated 9.2.2012 for Rs.27,20,000/- totalling Rs.77,20,000/-. An objection by The Royal & Nest Co.Op.Society Ltd., Chennai with regard to the deficit amount of EMD submitted by M/s AKR Holdings (P) Ltd., the matter was adjourned to 3.00 p.m. on 10.2.2012 finally for conducting auction so as to enable M/s. AKR Holdings (P) Ltd, to file Demand Draft for the deficit amount of EMD. At that juncture, the learned Administrator represented that 31 cents of land was left out in the publication by mistake and it has to be included in the auction for sale once for all otherwise, if it is auctioned in the subsequent hearing the Official Liquidator has to incur further expenses of Rs.7,00,000/- approximately. 7. Today when the matter was taken up for conducting public auction, apart from 18 intending purchasers, two more intending purchasers viz., Mr.Vignesh, Chennai-8 and Mr.C.Palanichamy, Namakkal have come forward with tender forms along with Demand Draft for EMD to purchase residential plot Nos. 65 and 164 respectively. As per the terms of the earlier order passed by this Court as well as in the publication, it has been specifically mentioned that preference will be given only those who have intended to purchase the entire lots viz., 167 residential plots and 6 non-residential plots. Except one person viz, The Royal & Nest Co.Op.Society Ltd., Chennai, intending to purchase entire 167 residential plots alone at the rate of Rs.285/-per sq. ft. Except one person viz, The Royal & Nest Co.Op.Society Ltd., Chennai, intending to purchase entire 167 residential plots alone at the rate of Rs.285/-per sq. ft. No one has come forward to purchase the entire lots viz., 167 residential plots and 6 non-residential plots. Previous day i.e. 9.2.2012 itself M/s AKR Holdings (P) Ltd. offered to purchase the entire lots viz., 167 residential plots at the rate of Rs.250/-per sq. ft. The upset price fixed by this Court was only Rs.250/-per sq. ft. Today M/s. AKR Holdings (P) Ltd., Chennai offered to purchase the entire lots viz.,167 residential plots at the rate of Rs.310/- per sq. ft. and 6 non-residential plots and 31 cents of land left out in the publication at the rate of Rs.306 per sq. ft. On verification of guideline value it is seen that the guideline value also Rs.250/-per sq.ft. Comparing this, it is higher than the upset price fixed by this Court as well as the guideline value. The only competing bidder for the purchase of the entire lots is M/s AKR Holdings (P) Ltd. Today, M/s AKR Holdings (P) Ltd., has produced three more Demand Drafts (1) bearing No.001431 dated 10.2.2012 for Rs.13,00,000/-, (2) bearing No.099019 dated 10.2.2012 for Rs.8,00,000/- and (3) bearing No.046799 dated 10.2.2012 for Rs.21,00,000/-totaling Rs.42,00,000/-. Ultimately, M/s AKR Holdings (P) Ltd., had produced 5 Demand Drafts for Rs.1,19,20,000/- towards EMD. Total sale consideration for 167 residential plots is: Rs.12,64,65,430/-, Total sale consideration for 6 non-residential plots is: Rs.1,44,54,216/- Total sale consideration for 31 cents of land is : Rs. 41,35,896/- Grand total : Rs.14,50,55,5542/- 8. The tenderers, viz., The Royal & Nest Co.op.Society Ltd., Chennai and M/s.AKR Holdings (P) Ltd., Chennai have keenly competed by rising their bids, from Rs.250/-to 310/- per sq. ft. towards residential lots. It is represented on behalf Royal & Nest Co.op Society Limited that they are interested only to purchase residential lots, whereas, M/s.AKR Holdings (P) Limited, Chennai alone has come forward to purchase the entire lots, viz., residential and non-residentiall plots and left out 31 cents of land at the rate of Rs.310/- and Rs.306/- per sq.ft. respectively and accordingly, they offered the said price. 9. Considering the same, before confirming the sale in favour of AKR Holdings (P) Limited, Chennai at the rate of 310/- sq. ft. towards residential plots and Rs.306/-per sq. ft. respectively and accordingly, they offered the said price. 9. Considering the same, before confirming the sale in favour of AKR Holdings (P) Limited, Chennai at the rate of 310/- sq. ft. towards residential plots and Rs.306/-per sq. ft. towards non-residential plots and left out 31 cents of land, this Court insisted and enquired if any tenderer comes forward more than these rates. The individual tenderers who quoted for single or more residential plots, have come forward to bid their tenders for Rs.320/- per sq.ft. towards residential plots. In this regard, it is relevant to mention the order passed by this Court on 19.01.2012, wherein, a specific condition has been added that the preference should be given to the persons who bid for the entire plots. It is to be noted that the said order was not challenged by any of the individuals. Therefore, having regard to the said order, this Court is constrained to confirm the sale in favour of M/s.AKR Holdings (P) Ltd., Chennai. 10. However, considering the fervent request of the individuals to allot single plots in their favour, this Court enquired with the highest bidder M/s.AKR Holdings, whether any possibility to allot the plots in favour of the respective individuals, for which, it is submitted that there is no such possibility since they are intending to develop the property as common unit and if individual plots are allotted, it would be very difficult for them to develop the property by leaving the allotted single plots. In such circumstances, it is just and proper for this Court to confirm the sale in favour of M/s.AKR Holdings (P) Limited, Chennai. 11. In nutshell, this Court is inclined to confirm the sale in favour of M/s.AKR Holdings (P) Limited for the entire lots, for the following reasons, viz., i. that no tenderer has come forward to bid entire lots, viz., both residential and nonresidential plots and 31 cents of land which was not brought for sale by advertisement,for Rs.310/- and 306/-per sq.ft. respectively, except M/s.AKR Holdings (P) Limited, Chennai; ii. that as per earlier order of this Court 19.01.2012, preference should be given to the persons who bid for the entire plots and as M/s.AKR Holdings (P) Ltd., Chennai alone bid for the entire plots, this Court has given preference to the said purchaser; iii. respectively, except M/s.AKR Holdings (P) Limited, Chennai; ii. that as per earlier order of this Court 19.01.2012, preference should be given to the persons who bid for the entire plots and as M/s.AKR Holdings (P) Ltd., Chennai alone bid for the entire plots, this Court has given preference to the said purchaser; iii. that in the auction, M/s.AKR Holdings (P) Ltd. stood as higher bidder for Rs.310/-towards residential plots and Rs.306/- towards non-residential plots and 31 cents of land which was not brought for sale by advertisement,; iv. that though some of the individual purchasers are ready and willing to bid their offer at Rs.320/- for single or more for residential plots, it is not feasible to confirm the piecemeal bids and thereafter, to go for fresh auction by way of another publication which not only expensive, but also consume considerable time and lead to multiplicity of proceedings. v. that though the highest bidder has produced Demand Drafts for Rs.98,20,000/-towards EMD which is less than the requisite EMD (i.e. 1,16,15,905/-as per advertisement), however, in order to prove his bona fide, the highest bidder has immediately produced another Demand Draft for Rs.21,00,000/- at the end of the auction proceedings, fulfilling the requisite EMD amount. vi. that though the learned counsel appearing for some of the bidders who are willing to purchase single or more plots, opposed by raising technical objections that the highest bidder has not come forward with the requisite EMD amount, considering the facts and circumstances that the highest bidder alone has come forward to purchase entire lots including the left out property, with the highest rates at Rs.310/- and 306/-, and also produced another Demand Draft for Rs.21,00,000/-at the end of the auction proceedings, fulfilling the requisite EMD amount, all the objections raised on behalf of the unsuccessful bidders, are overruled. 12. Accordingly, the sale in respect of the entire lots, namely, 167 residential plots, 6 non-residential plots and left out 31 cents is hereby confirmed in favour of M/s.AKR Holdings (P) Limited, Chennai at the rate of Rs.310/-, 306/- and 306/- per sq.ft. respectively, subject to the following conditions. a) The bidder shall deposit the entire sale consideration of Rs.14,50,55,542/- (Rupees Fourteen Crores, fifty lakhs, fifty five thousand, five hundred and fourty two only) less Rs.1,19,20,000/- by way of Demand Drafts towards EMD, to the Official Liquidator, within 60 days from today. respectively, subject to the following conditions. a) The bidder shall deposit the entire sale consideration of Rs.14,50,55,542/- (Rupees Fourteen Crores, fifty lakhs, fifty five thousand, five hundred and fourty two only) less Rs.1,19,20,000/- by way of Demand Drafts towards EMD, to the Official Liquidator, within 60 days from today. b) After such deposit, the Official Liquidator is directed to execute the sale deed in favour of the bidder after following the procedure. c) If the bidder commits default in paying the balance sale consideration within the stipulated period, the amount paid towards EMD will be forfeited without any further reference. 13. In view of the above terms and conditions, this application is disposed. The Official Liquidator is directed to return the Demand Drafts to the respective unsuccessful bidders on receipt of due acknowledgments. 14. Though it is specifically mentioned in the advertisement that the payment of Rs.1000/- towards cost of tender forms is not refundable, however, considering the frustration of the individual bidders who participated with fond hope to get a residential plot for their living, I feel it just and appropriate to order for return the costs paid towards tender forms to the unsuccessful bidders. Accordingly, the Official Liquidator is directed to return the costs of Rs.1000/- to the unsuccessful bidders who paid the same.