Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Winding up of sick industrial company 21(c) Sick Industrial Companies (Special Provisions) Act ss. 20(4) 1985 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Sick Industrial Companies (special Provisions) Act, 1985 (1 of 1986) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Sick Industrial Companies (Special Provisions) Act, 1985 : ss. 20(4), 21(c) – Winding up of sick industrial company – Operating agency to prepare complete inventory – On facts, Operating Agency-IDBI initiated process to sell the subject assets of the sick industrial company-BCI in terms of the order passed by the BIFR – Submission of solitary bid by the appellant – Operating authority accepted the same – However, the appellant did not adhere to the terms and conditions of Asset Sale Committee (ASC) – In view thereof, BIFR did not agree to the proposal to accept the bid – However, the Appellate Authority-AAIFR set aside the order of BIFR and issued directions to confirm the sale in favour of the appellant – However, Division Bench holding that the appellants have not made payment in terms of the guidelines of the ASC, they failed to furnish the bank guarantee and to deposit the purchase consideration, restored the order of the BIFR – On appeal, held : Operating Agency was under an obligation to obtain the valuation report of the subject property and after due assessment has to arrive at the reserve price – Procedure adopted by the Operating Agency was defective – Appellants auction bidder neither paid the sale consideration nor furnished the bank guarantee within 15 days of the acceptance of the bid in terms of the guidelines – Moreover, the Division Bench of the High Court holding that there was no competitive bidding which is a sine qua non for public auction and the guidelines of the ASC have not been complied with, set aside the order of the AAIFR with the direction to initiate the process afresh – No error in the view of the High Court – Appellant was under an obligation to comply with the requirement and despite opportunity the appellant failed to comply with the twin conditions – Thus, the High Court rightly set aside the order of AAIFR.Auction: Object and purpose of – Process of auction/bidding – Explained. |
Judge | Hon'ble Mr. Justice Ajay Rastogi |
Neutral Citation | 2023 INSC 439 |
Petitioner | Rajiv Kumar Jindal And Others |
Respondent | Bci Staff Colony Residential Welfare Association And Others |
SCR | [2023] 4 S.C.R. 79 |
Judgement Date | 2023-02-27 |
Case Number | 10127 |
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