IMPORTANT POINT
The court must ensure the best price in property sales during execution while balancing the need for timely resolution of awards.

JUDGMENT :

I.P. Mukerji, J.

1. This appeal raises a point of some importance.

2. An arbitral award was made on 27th December, 2021. Bengal Unitech Universal Siliguri Projects Ltd. ( Bengal Unitech) is the award holder. The appellant Siliguri Jalpaiguri Development Authority (SJDA) is the award debtor. Bengal Unitech filed an execution application (EC 91 of 2023) in this court to realize the award. On 12th April, 2023 the executing court appointed a Special Officer to carry out transfer of the subject property belonging to the judgment debtor. It was 92.96 acres of land situated at Mouza-Dabgram within Police Station-Rajganj in District-Jalpaiguri in West Bengal.

3. The proposed transfer by lease was duly advertised in the newspaper, after fixing Rs.322 crores as the reserve price on the basis of the circle rate valuation obtained by the Special Officer. On 15th June, 2023 he published an advertisement for lease of the property for 99 years. 29th June, 2023 was the last date for receiving bids. Till that date, no offer was received by the Special Officer. When the matter was next taken up in court. On 20th July, 2023 SLRL Agencies Pvt. Ltd. (SLRL) appeared and offered Rs.400 crores together with an earnest of Rs.40 crores for the property. Later on by an application (GA 4/2023), Terai Tea Co. Pvt. Ltd. offered Rs.350 crores. However, they could make an earnest deposit of Rs.1 crore only, although asked to deposit Rs.40 crores by the court. They approached the court for an opportunity to bid for the property. That application was dismissed. On dismissal of that application, the court by its impugned judgment and order dated 27th July, 2023 recommended transfer of the property on lease in favour of SLRL for Rs.400 crores, observing that they were the only intending purchaser available. The terms and conditions were as follows:-

(a) 10% of the amount that had already been deposited by cheques are to be encashed by the Registrar, Original Side, immediately and the amount to be put in an interest bearing fixed deposit with the State Bank of India, High Court Branch.

(b) The State of West Bengal along with Siliguri Jalpaiguri Development Authority shall have a survey carried out in the presence of the learned Special Officer and SLRL Agencies Pvt. Ltd. delineating a map containing measurement of property be made by the BL&LRO and/or its authorised agent and a report be prepared demarcating such land/plot. The Block Land and Land Revenue Officer is directed to carry out the same within a period of 21 days from date.

(c) A draft copy of the lease deed to be made over to the SLRL Agencies Pvt. Ltd. by Siliguri Jalpaiguri Development Authority within a period of 10 days from date.

(d) The applicant shall deposit a further amount of Rs.170 Crores (Rupees One Seventy Crores Only) within 90 days from completion of the BL & LRO report.

(e) SJDA shall undertake to stand by the No Encumbrance certificate dated 22nd May, 2023.

(f) Upon Payment of Rs. 170 crores as second installment, the SJDA would execute and register a lease deed equivalent to the quantity of land amounting Rs. 170 Crores. In the event the Applicant defaults in paying the remaining 190 crores within the time mentioned hereinafter, the sum of Rs.40 crores initially deposited shall be forfeited.

(g) The balance amount of Rs.190 crores shall be deposited within 90 days of execution of the lease deed as mentioned hereinabove.

(h) In the event the balance of Rs.400 crores has not been deposited within 90 days of execution of the above lease deed, the entire amount of Rs.210 crores shall stand forfeited and the lease deed issued in favour of the SLRL Agencies Pvt. Ltd. shall be treated as cancelled and a nullity.

4. At the suggestion of the purchaser the court had made some modification of the terms and conditions of the lease contained in the advertisement.

5. After a month or so after the impugned order was made, on or about 23rd August, 2023, one organization Maxofit Softech Private Limited m