PRAVIN GADA AND ANOTHER versus CENTRAL BANK OF INDIA AND OTHERS

PRAVIN GADA AND ANOTHER versus CENTRAL BANK OF INDIA AND OTHERS

In view of elapsed period, deposit of Rs.2.50 crores with interest aggregating Rs.4.75 crores by appellants, and maximum offer of Rs.5.04 crores obtained in auction, Supreme Court confirmed the sale in favour of appellants subject to depositing an additional Rs.50 lacs within three months. Official Liquidator must participate at both sale and distribution stages. Rights of workmen to be decided and monitored by High Court as per appellants' concession.

Parties
Appellants: Pravin Gada and Another; Respondents: Central Bank of India and Others
Jurisdiction
India
Judgment Date
03 December 2012
Procedural Posture
Civil Appeal / Appeal From High Court Order Quashing DRAT Confirmation of Auction Sale; Special Leave Appeal Before Supreme Court
Outcome
Appeals disposed of. Sale confirmed in favour of appellants subject to deposit of Rs.50 lacs. Rights of workmen to be addressed by High Court.
Legal Topics
Company Liquidation, Auction Sale Under Recovery Proceedings, Rights of Workmen, Role of Official Liquidator
Corporate Law Company Liquidation Auction Sale Under Recovery Proceedings Rights of Workmen Role of Official Liquidator

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Parties

Pravin Gada and Another

Appellants

Central Bank of India and Others

Respondents

Procedural Posture

Civil Appeal / Appeal From High Court Order Quashing DRAT Confirmation of Auction Sale; Special Leave Appeal Before Supreme Court

Legal Issues

  1. 1 Whether auction sale of company's property under liquidation was fair and transparent
  2. 2 Rights of workmen vis-à-vis sale proceeds in liquidation
  3. 3 Role of Official Liquidator at different stages of liquidation sale

Ratio Decidendi

In view of elapsed period, deposit of Rs.2.50 crores with interest aggregating Rs.4.75 crores by appellants, and maximum offer of Rs.5.04 crores obtained in auction, Supreme Court confirmed the sale in favour of appellants subject to depositing an additional Rs.50 lacs within three months. Official Liquidator must participate at both sale and distribution stages. Rights of workmen to be decided and monitored by High Court as per appellants' concession.

Court Disposition

Appeals disposed of. Sale confirmed in favour of appellants subject to deposit of Rs.50 lacs. Rights of workmen to be addressed by High Court.

Orders

  • Appellants to deposit Rs.50 lacs before DRAT within three months.
  • Interlocutory applications for impleadment and withdrawal of earnest money by other bidders allowed.