JUDGMENT :

K.A. PUJ, J.

The Official Liquidator has filed this report as well as Company Application and since common issue is involved in both the matters, the same are heard together and are being disposed of by this common judgment and order.

2. In O.L.R. No. 12 of 2006, the Official Liquidator has prayed for ratification of his action in impleading the Secretary, Government of Gujarat, Industries and Mines Department, Gandhinagar as party - in the present report. He has also prayed for confirmation of sale of land admeasuring approximately 27,741 Sq. Mts. situated at Survey Nos. 39 & 41, Town Planning Scheme No. 14, Final Plot No. 24 of Dariapur - Kazipur, Ahmedabad, except records of the Company in liquidation, in favour of Shri Nilesh Jhalani, Shriram Bhavan, Goshala Road, Ratlam, M.P. for Rs. 5.55 Crores on the terms and conditions specified in the tender document produced at Annexure - F to his report. He has also prayed for ratification of his action of making payment to the Advertising Agency, namely, Navnitlal & Company for Rs. 38,022/-from the funds available with his office and he has also prayed for permission to make payment of Rs. 25,000/-to the Valuer Shri Hasmukh C. Patel towards valuation charges.

3. This Court has issued notice on 03.03.2006. On 01.05.2006, the Court has passed a detailed order in view of the objections raised by the purchaser on the basis of the stand taken by the State Government that the State Government has taken the possession of the property somewhere in the year 1999 by invoking the provisions contained in Urban Land (Ceiling & Regulation) Act, 1976. The Court, therefore, directed the State Government to file its affidavit pointing out that what would be the effect of the Repealing Act and how the State Government entered in possession when the property was in possession of the Court through the agency of the Official Liquidator.

4. On behalf of the State Government, an affidavit was filed by the Deputy Collector (ULC), Ahmedabad on 28.06.2006. An affidavit - in - rejoinder is filed by one Mr. Sudama Ramkuber Dube, a watchman of the Company in liquidation, in response to the affidavit - inreply filed by the State Government. The Official Liquidator has also filed his further report on 05.09.2006 taking note of the fact stated and the averments made in the affidavit - in - reply filed on behalf of the State Government and, inter alia, praying for the direction, clarification and declaration that so - called possession taken by the ULC authorities under order of April 1991 passed by the Competent Authority and Deputy Collector, is illegal and contrary to law and seeking direction to the State Government to remove its attachment from the revenue records so that he could go ahead with the liquidation proceedings and could dispose of the land of the Company in favour of the highest bidder.

5. During the pendency of the above report, as per the advice received by the Official Liquidator, he has filed Company Application No. 575 of 2006 and in the Judge's Summons taken out therein, he has prayed for quashing and setting aside the action of the State Government of taking possession of the land belonging to the Company in liquidation and praying for the declaration that a piece of land admeasuring about 26721 Sq. Mts. situated at Survey Nos. 39 & 41, Town Planning Scheme No. 14, Final Plot No. 24 of Dariapur - Kazipur, Ahmedabad is the property of the Company in liquidation and it cannot be treated as surplus land. The Official Liquidator has also prayed for removal of the attachment from the revenue records on the said land.

6. The brief facts giving rise to the report as well as Company Application are that by an order dated 11.10.1989 passed by this Court in Company Petition No.117 of 1989, Commercial Ahmedabad Mills Limited has been ordered to be wound up and the Official Liquidator attached to this Court was appointed as the Liquidator of the said Company with all usual powers and under the pro