Markandey Katju JUDGMENT
Markandey Katju, J.
1. Leave granted.
2. This appeal has been filed against the impugned final judgment & order dated 25.8.2005 & 26.8.2005 passed by the High Court of Gujarat at Ahmedabad in O.J. Appeal No. 69 and 70 of 2004 in O.J. Misc. Civil Application No. 175 of 2003 and CA No. 311 of 2004respectively in Official Liquidator Report No. 49 of 2003 .
3. Heard learned Counsel for the parties and perused the record.
4. The facts of the case are that Hindustan Nitro Product (Gujarat) Ltd. was put under liquidation, and an official liquidator was appointed for it. The assets of the company were proposed to be auctioned, and hence the Court asked the official liquidator to obtain a valuation report. The official liquidator after obtaining the valuation report submitted it to the Court. The valuation of these assets, according to the official liquidator, was Rs. 2.55 crores. The property was then put up for auction on 25.3.2003 after advertising it in various well-known newspapers having wide circulation, including `The Economic Times' which is a well known newspaper having wide circulation in the business community.
5. Several bids were received and were opened in the Court. The highest bid was that of the appellant M/s. Valji Khimji & Company amounting to Rs. 3.51 crores. With the consent of the learned advocates representing the secured creditors, the said bid was accepted and the sale was confirmed on 30.7.2003. The Court directed the appellant to deposit 25% of the purchase price i.e. Rs. 63,98,000/- within 30 days from the said day and to deposit the balance amount within the next three months. The Court also directed that the amount may be deposited in installments, but no installment should be less than Rs. 5 lakhs. These conditions were complied with by the appellant.
6. Although the sale was confirmed in favour of the appellant on 30.7.2003, a letter dated 22.10.2003 was sent to the official liquidator by one M/s. Manibhadra Sales Corporation (respondent No. 8 herein) offering to buy the assets in question for Rs. 3.75 crores (though this offer was admittedly withdrawn later on).
7. Subsequently in August 2004, M/s. Castwell Alloys Limited (respondent No. 9 herein) made an offer of Rs. 5 crores for the said assets. This offer was made more than one year after the confirmation of the sale in favour of the appellant.
8. Both M/s. Manibhadra Sales Corporation and M/s. Castwell Alloys Limited filed applications praying for recall of the order dated 30.7.2003 by which the sale was confirmed in favour of the appellant. On 10.9.2004, the learned Company Judge took up both these applications and passed an order dated 10.9.2004 recalling the order dated 30.7.2003 by which the sale was confirmed.
9. Aggrieved against the said order dated 10.9.2004 the appellant filed an appeal before the Division Bench of the High Court which was dismissed by the impugned judgment dated 25.8.2005 and 26.8.2005. Aggrieved, this appeal has been filed before us by way of Special Leave.
10. We have carefully perused the impugned judgment & order of the learned Division Bench as well as the order dated 10.9.2004 of the learned Single Judge and are of the opinion........