Extension of time by modifying condition clause prayed.

LAKSHMANAN J.

Before dealing with all the applications, it is necessary for me to briefly state the history of the case. This court, by order dated February 22, 1991, in Company Application No. 1561 of 1990 in Company Petition No. 28 of 1986, directed the respondent herein (official liquidator) to invite sealed tenders for the sale of the properties belonging to the company in liquidation by publishing advertisements in newspapers. Accordingly, the official liquidator had published necessary advertisements in The Hindu, The Indian Express, Economic Times and Financial Express (all in English) and in Daily Thanthi (Tamil), calling for sealed tenders for the sale of the company's property. The advertisements were published in the said newspapers on March 9, 1991, and March 10, 1991. Pursuant to the advertisements in the newspapers, many parties evinced considerable interest in the purchase of the property of the company (the textile mill) in liquidation. About 115 persons obtained from the office of the official liquidator copies of the terms and conditions and tender forms between April 8, 1991, and April 10, 1991. About 35 persons had visited the factory premises at Pudukottai for inspection of the machinery, etc. Though the initial response to the advertisements was quite encouraging, the official liquidator received tenders for purchase of the company's property only from three persons. He had also received an unsealed cover from one Mehta Traders, captioned

"Tender for the purchase of machinery belonging to the Cauvery Spinning and Weaving Mills Ltd. (in liquidation)" *

. Pursuant to the notice, the representatives of the Tamil Nadu Industrial Investment Corporation Ltd., the Bank of India and the State Government of Tamil Nadu were present at the time of opening of the tenders in the office of the respondent on April 16, 1991, at 11 a.m. The tenders received by the respondent were opened in the presence of the aforesaid persons. The names of the tenderers and the particulars of the offers received are as under :S. No. Name of the tenderer E.M.D. with Price

D. D. No. and offered

date Rs.

1. Sri T. S. Velusamy, 1, 00, 000 2, 80, 00, 000

519, Big Bazar Street, D.D. 0825271

Trichirappalli - 8. dated 11-4-1991

2. Senthel Building 1, 00, 000 1, 89, 09, 699

Manufacturing Co. Pvt. P. O. 702316

Ltd., Coimbatore dated 15-4-1991

3. Sri M. K. Thaila 1, 00, 000 2, 62, 00, 000

Mudaliar, D.D. 082570

Trichirappalli dt. 11-4-1991

Brief terms and conditions : Payment of 20 per cent. of the tender amount within ten days and the balance in 30 days from the date of confirmation of sale.

The said three offerers were informed that if they so desire, they should be present in court at the time of hearing to make submissions, if any, with the leave of this court in respect of their offers.

The Bank of India, the first respondent in Company Application No. 1561 of 1991 filed a memo, stating that they have no objection whatsoever to this court's accepting the offer for a sum of Rs. 2 crores and Rs. 80 lakhs made by T. Velusami, No. 519, Bazaar Street, Trichy, and that he may be called upon to pay 20 per cent. of the offer within ten days.

The learned official liquidator filed his further report, dated April 18, 1991, with some enclosures.

My learned brother, Maruthamuthu J., after hearing the respective parties, viz., the official liquidator and learned counsel for the Bank of India, Madras and the Tamil Nadu Industrial Investment Corporation Ltd., Madras, passed the following order on April 19, 1991:

"When the offers were taken up for consideration, Senthel Building Manufacturing Co. (P.) Ltd., Coimbatore, who offered a price of Rs. 1, 89, 09, 699 before the official liquidator expressed their desire to enhance it even beyond Rs. 2, 80, 00, 000 for which Sri T. Velusamy made the offer. Since there is the likelihood of getting increased price for the property in question, the two offerers, viz., Velusamy and Senthel Building Manufacturing Co. (P.) Ltd., a