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2025 Supreme(Online)(Ker) 59013
IN THE HIGH COURT OF KERALA AT ERNAKULAM
VIJU ABRAHAM, J
Rajeendran P. – Appellant
Versus
M/s.Goodway Business Corporation of India Limited – Respondent
Co.Appl.No.314/2025 in Co.Appl. No.258/2025 in Report No.108/2025 in Co.Pet. No.39/2008
For the Appellants/Petitioners: Sri.Shiju Varghese
For the Respondents: Sri.K.Moni
The court emphasized timely compliance in auction processes for claimants seeking to participate.
Headnote:This Judgment pertains to a Company Application under Rule 9 of the Company Court Rules, 1959, where the applicant seeks to be impleaded for preferring a claim petition. The Court reviews the offers for a specific property and confirms the existing auction sale while allowing the applicant to join proceedings under certain conditions. The principal issue revolves around the confirmation of the sale and the applicant's ability to deposit the requisite amount. The Court's finding affirms the necessity of timely compliance for participation in the auction process. RESULT: The Court allows the application with the condition that the applicant deposits an amount of Rs.75 Lakhs on or before 05.01.2026.
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| 1. the necessity for compliance with auction terms. (Para 4) |
VIJU ABRAHAM, J.
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Dated this the 19th day of December, 2025
ORDER
Report No.108 of 2025 in C.P.No.39 of 2008 is filed by the Official Liquidator seeking confirmation of sale in respect of the landed property having an extent of 43.65 cents comprised in Survey No.373/1 at Nenmanikkara Village, Paliyekkara Desom, Thrissur District in favour of Govind & Company, the applicant in Co.Appln. No.292 of 2025, who had quoted the bid amount of Rs.2,18,50,000/- [Rupees Two crores eighteen lakhs and fifty thousand only) and also permitting the Official Liquidator to execute the sale deed in favour of the purchaser viz. Govind & Company after receiving the entire sale consideration.
2. The erstwhile Managing Director has filed Co.Appln.No.258 of
2025, making an offer of Rs.2,30,00,000/- [Rupees Two crores and thirty lakhs only], which is more than Rs.12 Lakhs above the present auction amount.
3. When Co.Appln.No.258 of 2025 came up for consideration on
29.09.2025, this Court has directed the applicant to deposit the aforesaid amount of Rs.2,30,00,000/- before the Official Liquidator within a period of three weeks therefrom. However, it is an admitted fact that the said amount has not been deposited till date by the applicant in Co.Appln.No.258 of 2025. In the meanwhile, the auction purchaser, M/s. Govind & Company, filed Co.Appl. No.292 of 2025 expressing their intention to match the offer made by the applicant in Co.Appl.No.258 of 2025 by agreeing to deposit an amount of Rs.2,30,00,000/- and seeking confirmation of the sale upon acceptance of the said amount.
4. While so, this application was filed claiming to be the erstwhile Managing Director of the respondent Company, wherein it is submitted that, by any stretch of imagination, the property sold in auction is worth Rs.3,50,00,000/- and he sought impleadment in Co.Appln. No.258 of 2025, stating that he has a purchaser who is prepared to purchase the property for a sum of Rs.3,50,00,000/-. This matter has been pending consideration for a considerable period, though the auction was initially finalised in favour of M/s. Govind & Company. The applicant in Co.Appln. No.258 of 2025 failed to deposit the amount of Rs.2,30,00,000/- as agreed. In the meanwhile, the auction purchaser agreed to match the offer made by the applicant in Co.Appln.No.258 of 2025. It is while so.
This application is filed seeking impleadment in the proceedings. Therefore, this application is allowed, impleading the applicant as the additional respondent in Co.Appln.No.258 of 2025 on condition that the applicant shall deposit an amount of Rs.75 Lakhs on or before 05.01.2026. If the said amount is not deposited within the stipulated time, this Court will take steps to confirm the auction in favour of M/s.Govind &
Company on the basis of their revised offer.
Sd/-
