Supreme Court

Vedica Procon Private Ltd. v. Balleshwar Greens Private Ltd. and Ors.

MANU/SC/0870/2015

13.08.2015

Commercial

Property becoming more valuable subsequent to conclusion of sale by liquidator is not a relevant consideration in determining the legality of the sale

If a higher offer is received in respect of the sale of property of a company in liquidation, the Court is not justified in reopening the concluded proceedings. Once the highest bid of the Appellant was accepted by the Company Court and none of the stakeholders of the company, or the Respondent, objected to the offer of the Appellant for fraud or irregularity, the sale was confirmed. The Court added that though there is no specific format in which sale by the official liquidator is to be confirmed, the mere absence of the expression "that the sale is confirmed" does not vitiate the sale.

Relevant

FCS Software Solutions Ltd. v. LA Medical Devices Ltd. and Ors. MANU/SC/7803/2008
Manoj I Naik and Associates v. Official Liquidator MANU/SC/1013/2014
Divya Manufacturing Co. (P) Ltd. v. Union Bank of India and Ors. MANU/SC/0427/2000
Valji Khimji and Co. v. Official Liquidator of Hindustan Nitro Product (Gujarat) Limited and Ors. MANU/SC/3408/2008

Tags : liquidation sale higher offer conclusion

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