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High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE S.J. MUKHOPADHAYA & THE HONOURABLE MR. JUSTICE M. VENUGOPAL
R. Vijayakumar
Versus
M. Ravindran, Sr. Advocate & Others
O.S.A. No. 129 of 2007
Decided On : 21-10-2008
Sale of Property - Company Petition - Companies Act - Sec. 477 - Sec. 477 of the Companies Act - Summary adjudication or a proceeding under Sec. 477 of the Companies Act - Sec. 477 of the Companies Act - Sec. 477
Fact of the Case:
The appellant filed a company application to set aside the sale of lands pursuant to a court order. The appellant claimed that certain lands were sold to the company in liquidation, but the sale deeds were not registered. The appellant objected to the auction sale of the lands and alleged lack of notice and non-registration of sale deeds.
Finding of the Court:
The court found that the appellant had prior knowledge of the auction sale and had not challenged it. The court also noted that the appellant had sold government lands and was charge-sheeted in a criminal case. The court dismissed the appeal, stating that there was no ground to interfere with the lower court's order.
Issues: The issues involved the legality of the auction sale, lack of notice to the appellant, non-registration of sale deeds, and the appellant's prior knowledge of the auction.
Ratio Decidendi: The court held that the auction sale could not be challenged as the appellant had prior knowledge of it and had not challenged it. The court also noted that the legality of the transfer made by the appellant was not to be determined in the present company petition.
Final Decision: The appeal was dismissed with no order as to costs.
S.J. Mukhopadhaya, J.
In the company petition, the appellant, R.Vijayakumar filed company application, C.A. No.1037/06 to set aside the sale pursuant to order dated 11th Nov., 2003, passed by the Court in C.A. No.211/03 in respect of lands situated in survey No.3 to an extent of
1. 20 acres in Kazhipattur village, Kanchipuram District. Learned Judge having rejected the application, the present appeal has been preferred.
2. According to the appellant, agreement for sale of certain lands were reached between M/s.Good Luck Inn Pvt. Ltd. represented by its Managing Director, Mr. R. Vijayakumar with Mr.C.Natesan of the company in liquidation. In most of the cases full consideration amount was received except some in which certain amounts were payable. In some cases, sale deeds were executed; in some cases sale deeds were prepared, but not executed and in all cases none of the sale deeds were registered. The grievance of the appellant is that, this Court, by its order dated 18th Dec., 2003, directed the Official Liquidator to execute the sale deed in respect of 7.875 acres of land in Kazhipattur village in favour of the auction purchase including the 1.20 acres of land in question.
3. Learned counsel for the appellant submitted that the total money having received in most of the cases, the appellant filed application only with regard to land situated in survey No.3 to an extent of 1.20 acres in Kazhipattur village, Kanchipuram District and not for the other lands. The following details with regard to the lands belonging to the appellant, auction sold by the Official Liquidator pursuant to courts order have been shown as follows :-
Agreement for Sale dt. 21. 94 M/s.Good Luck Inn Private Limited represented by its Managing Director, Mr.R.Vijayakumar entered into Three agreements for sale with Mr.C.Natesan to sell the following properties situate at Kazhipattur and Muttukadu Villages :-
1) Survey No.95/1A, 1C, 2A, 1B – measuring an extent of 50 cents in Mutukadu village.
2) Survey No.19/2C – mesauring an extent of 79 cents in Kazhipattur village.
3) Survey No.19/2D – measuring an extent of 75 cents out of 91 cents in Kazhipattur village.
Total Sale consideration Rs.21,50,000/=
Cheque for Rs.10,00,000/= issued not presented
The total sale consideration agreed was Rs.21,50,000/=. The appellant received a cheque for Rs.10,00,000/= issued by Mr.C.Natesan vide cheque bearing No.072601 dt. 21. 94 drawn on Karnataka Bank Ltd., Kodambakkam Branch. However, the cheque issued for Rs.10 lakhs has not been presented for payment on instructions from Mr.C.Natesan.
Period - 6 months Time agreed for completion of the transaction was 6 months Agreement for sale dt. 21. 94 Another agreement for sale had been entered into with C.Natesan on 21. 94 for sale of the property situate at No.37, Kazhipattur village comprised in survey No.20, measuring an extent of 5.42 acres or thereabout. Sale value – Rs.27.10 lakhs Agreed sale consideration was 27.10 lakhs Amount received by appellant – Rs.1.90 lakhs by cheque bearing No.072602 dt. 21. 94 drawn on Karnataka Bank Ltd., Kodambakkam Branch.
Agreement for sale dt. 21. 94
Another greement dt. 21. 94 was entered into in respect of the property situate atKazhipattur village, measuring an extent of 5.28 acres or thereabout comprised in various survey nos.
Sale consideration – Rs.26.40 lakhs
Total sale consideration that has been fixed was Rs.26.40 lakhs
Amount recd. - Rs.1,00,000/=
Amount received – Rs.1,00,000/= by way of demand draft dt. 31. 94 in the name of
Mrs.E.Chinnammal.
The balance sale consideration payable within a period of 6 months.
Since the sale transaction could not be completed within the stipulated period of six months from the date of respective agreement for sale, the agreements stood terminated and cancelled.. The appellant, the 3rd party files a memo intimating the Administrator that he has entered into an agreement for sale with C.Natesan in an individual capacity and as such, the sa
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