Vedica Procon Private Ltd. v. Balleshwar Greens Private Ltd. and Ors. - (Supreme Court) (13 Aug 2015)

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

MANU/SC/0870/2015

Commercial

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