This appeal under Section 483 of the Companies Act,

1956 has been filed against the order dated 26.08.2016

passed by Company Judge on OLR No.109/2016 in Co.P

62/1987 filed by the Official Liquidator.

2.

Facts leading to filing of this appeal in nutshell

are that the appellants are public sector financial institutions

and are carrying on the business of banking. The appellants

provide credit and other facilities. A company viz., Spun Silk

India Pvt. Ltd. (SSIL) approached the appellant No.1 for

sanction of facilities for its business. Thereupon, the

appellant No.1 sanctioned a Rupee Term Loan of Rs.120

Lakhs, additional Rupee Term Loan of Rs.10 Lakhs and Rs.32

Lakhs. The aforesaid SSIL secured the loan by creating a

deed of hypothecation and created a joint mortgage in

respect of properties run by it. The aforesaid company also

availed loan to the extent of Rs.1,33,83,810/- to appellant

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No.2 as well as term loan of Rs.55 Lakhs and additional Term

Loan of Rs.14 Lakhs from respondent No.3.

3.

In a company petition, learned Company Judge of

this court by an order dated 02.06.2000 directed SSIL to be

wound up and Official Liquidator attached to this court has

been appointed as Liquidator. The assets of SSIL were sold

by the Official Liquidator in November 2003 for a sum of

Rs.166.13 Lakhs to M/s Rajmahal Silks Pvt. Ltd. (hereinafter

referred to as 'the respondent No.2' for the sake of

convenience). The learned company Judge vide order dated

13.11.2003 accepted the bid of respondent No.2 for a sum of

Rs.1,65,13,000/- and the sale was affirmed. The Official

Liquidator was directed to hand over the possession of the

Company in Liquidation. Thereupon the possession was

handed over to respondent No.2.

4.

The aforesaid order passed by the Company

Court was challenged before a Division Bench of this court.

The division Bench of this court by an order dated

28.08.2007 set aside the sale carried out by the Official

Liquidator and requested the learned Company Judge to re

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tender the property for sale afresh. The respondent No.2

assailed the aforesaid order in an appeal. The Supreme Court

passed an interim order on 11.02.2016 and directed that the

upset price of the property shall be fixed at Rs.4 Crores and

if the property fetches more than Rs.4 Crores, the amount

already tendered by respondent No.2 along with interest at

the rate of 15% thereon shall be paid to it and the balance

amount

shall

be

retained by the Official Liquidator.

Thereafter, the Special Leave Petition was disposed of by an

order dated 03.05.2016 and it was directed that learned

Single Judge shall take appropriate decision after hearing the

concerned parties and if the property has to be auctioned

again,

necessary

direction

to

return

the

amount

to

respondent No.2 shall be issued with adequate interest

thereon so that respondent No.2 can be sufficiently

compensated.

5.

The learned Company Judge got the property re

valued and auctioned the sale. The highest bid of Rs.8.80

Crores was received and the sale was affirmed. However,

respondent No.2 was also permitted to submit his claim to

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the Official Liquidator and Official Liquidator was directed to

pass orders in respect of adequate compensation payable to

respondent No.2. The respondent No.2 along with a report of

certificate annexed by Chartered Accountant submitted the

claim for an amount of Rs.10,20,24,000/- as refund and

compensation. The Official Liquidator filed OLR No.109/2016,

calculating the compensation by taking into account fixed

deposit rate of interest ranging from 7.5% to 10.25% The

Official Liquidator took note of the fact that respondent No.2

had deposited the amount 13 years ago and stated that

interest at the rate of 8.5% interest compounded annually

can be awarded on the amount. Thus, the Official Liquidator

stated that a sum of Rs.5,54,36,056/- can be awarded to the

respondent No.2 as compensation. The learned Company

Judge by an order dated 26.08.2016 accepted the report and

directed that a