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.

JUDGMENT :

Heard Mr.Dhawan M Jayswal for applicant no.1 - Official Liquidator, learned advocate Mr.D.S. Vasavada for respondent No.2, learned advocate Mr.Pathik M Acharya for respondent No.3 and learned advocate Mr.Prabhakar Upadhya for respondent No.4. None appeared for respondent No.1 though Notice was served by direct service.

Heard learned Senior Counsel Mr.Devang Nanavati with learned advocate Mr.Saurabh M Patel for the applicant of Company Application No.44 of 2024.

1. The Official Liquidator filed Official Liquidator’s Report No.42 of 2024 seeking following orders and directions from this Hon’ble Court:--

(A) In view of facts stated here-in-above, this Hon’ble Court may be pleased to consider the bid received for Lot No. (III) from M/s. Arham Developers of Rs.70,27,52,700/- as per e-auction conducted by M/ s. RailTel Corporation of India Ltd., as per terms and conditions of sale and/or such other and further terms and conditions as may be considered appropriate by this Hon’ble Court in the matter.

(B) This Hon’ble Court may be pleased to permit the Official Liquidator to make payment of bill of Rs.2,36,387/-, to M/s.Global Network Advertising., Advertising Agency, as per advertisement agency’s bill dated 26.06.2024 at Annexure – “B” to this report being the advertisement expenses from the Common Pool Account maintained by the Office of the Official Liquidator subject to recovery from the Sale Consideration on priority basis being Liquidation Expenses.

(C) As stated in para (9) here-in-above, this Hon'ble Court may be pleased to direct successful bidder to pay cost of Rs.30,000/- + applicable GST to e-auction agency, if the sale is confirmed in their favour, otherwise Official Liquidator may be permitted to pay an amount of Rs.10,000/- + applicable GST to e-auction agency if the auction fails and sale is not confirmed in favour of successful bidder from the Common Pool Account maintained by the Official Liquidator.

(D) Such other and further orders and directions as may be considered just and appropriate may also be passed.”

2. During pendency of the aforesaid report, M/s. Devbhoomi Agrifresh Private Limited, intervener bidder, preferred COMA No.44 of 2024, wherein, applicant seeks following reliefs:

“This Hon'ble Court may be pleased to permit present Applicant to participate and allow to bid for the properties into the custody of official liquidator of ARYODAY SPG. & WVG. MILLS COMPANY LTD (In liquidation) as describe in sale proclamation and public notice issued by official liquidator on 20.06.2024 pursuant to this Hon'ble court’s order dated 14.06.2024. This Hon'ble Court may be pleased to order for manual auction by conducting inter-se biding for fetching highest price of the properties into the custody of official liquidator of ARYODAYA SPG. & WVG. MILLS COMPANY LTD (In liquidation) as describe in sale proclamation and public notice issued by official liquidator on 20.06.2024 pursuant to this Hon'ble court’s order dated 14.06.2024 and further this Hon'ble court be pleased to permit the present Applicant to participate in the inter-se bidding. That this Hon’ble Court be pleased to pass such further and other orders as the nature and circumstances of the case may require;”

3. This Court vide its order dated 14.06.2024 passed in Official Liquidators Report No.29 of 2024 had permitted Respondent No. 1 to sell the property of ARYODAY SPG AND WEVG. MILLS LTD (in liquidation) and in compliance to the said order, sale proclamation was published on 26.06.2024. Thereafter, accordingly E-auction was conducted on 15.07.2024 wherein two bidders deposited EMD (Earnest Money Deposit) amount of Rs. 7,00,00,000/- as per terms and condition of sale and participated in e-auction proceedings wherein present respondent no. 3 immerged as the highest bidder & respondent No.4 immerged as the second highest bidder respectively. Pursuant to conclusion of said E-auction, R/Official Liquidators Report No. 42 of 2024 has been filed by official liquida