Back
B. S. BHANUMATHI
P. Vijaya Saradhi Raju – Appellant
Versus
Vijetha Agro Farms India Limited – Respondent
ORDER :
1. The Official Liquidator attached to this High Court filed administrative report and requested to take it on record and further sought permission to refund/return EMD/part sale consideration of Rs.29 Lakhs to Sri P. Vijaya Saradhi Raju (highest bidder for lot No. 5) pursuant to the orders dated 22.04.2016 in CA. No. 1555 of 2008 of this Court from and out of the fund of Rs.9,50,000/- available in companies account and Rs.19,50,000/- from and out of the “Estate and Establishment Fund Account” maintained by the Official Liquidator, subject to recruitment of the sale against the sale proceedings of the assets of the company (in liqn.).
2. The Company Application No. 4 of 2024 is filed to direct the respondent herein to return the EMD amount of Rs.29,00,000/- along with interest @ 6% per annum for the date of deposit to till the date of payment.
3. The administrative permission sought by the Official Liquidator is heard on the bench along with COMP Appeal No. 4 of 2024 as per the order dated 30.04.2024 on administrative side.
The facts leading to the seeking above relief as briefly as follows:
The court established that a claimant can receive interest on a delayed refund even if there was a lapse in claiming it, provided the funds were not returned as per prior court orders.
The Court has discretion under Section 457(1)(c) of the Companies Act to accept higher bids from non-participants in an auction, prioritizing the interests of creditors.
Liquidator's cancellation of auction for non-payment within 90 days and EMD forfeiture upheld per regulations; excess deposit beyond EMD refunded with interest to prevent unjust enrichment upon re-au....
An auction participant must conduct due diligence and cannot contest auction terms after participating, as liability to verify title lies with the bidder.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
