C.M. No. 857 -L OF 2004 This petition by a third person, who had not participated in the original auction, seeks participation in the auction proceedings. This petition is liable to be dismissed for multiple reasons because on the one hand there is no open bidding at the present and on the other hand, the petitioner having not participated in the original auction proceedings, has no right to file any such petition, thus, the same is dismissed, being misconceived.
Main Case.
2. Assets of the respondent, the company under liquidation i.e. Messrs Crescent Spinning Mills Limited, were ordered to be sold vide order dated 1-10-2004. The Official Liquidators accordingly, invited sealed bids through public notice, published in two daily newspapers, one in Urdu "Jang"
Lahore and the other in English Business Recorder dated 12-10-2004, reciting for sale (i) Factory including building, machinery and land measuring 148 Kanals and 17 Marlas duly detailed (ii) Land measuring 20 Kanals and 13 Marlas Qila Nos.2/2, 3 and 5. Bidders were required to submit separate bids/offers for these two sets of properties. Three parties submitted their sealed bids, which were opened by the Joint Official Liquidators in presence of representatives of all the secured creditors.
During the process of sale another piece of land measuring 37 Kanals owned by the company under liquidation, was recovered and at the time of opening of sealed bids, Joint Official Liquidators informed the bidders that the highest bidder will have to purchase this land as well, at the price offered for additional land measuring 20 Kanlas and 13 Marlas. JOLs submitted Report No.8 detailing all the offers received by them. According to this report, Messrs. Accro Textile Mills Limited offered Rs.211,500,000 for factory. and Rs.2,065,000 for additional 20 Kanals, 13 Marlas land whereas the next nearest bid was by Messrs Maqbool Usman Fibers (Pvt.) Limited and its offer for factory was Rs.192,000,000 and Rs.2,312,800 for 20 Kanals and 13 Marlas land. Subsequently all the three bidders, improved their respective bids in inter-bidding process. Messrs Accro Textile came up to Rs.275,500,000 plus land at the rate of Rs.100,000 per Kanal and Messrs Maqbool Usman Fibers improved to Rs.275,000,000. Third bidder i.e. Messrs Faisal Fabrics Limited each time remained at the last with final offer of Rs.272,000,000.
3. Messrs Maqbool Usman Fibers Private Limited, the second highest bidder filed an application for permission to further improve its offer (C.M. 796-L of 2004). Reply to this petition was obtained and during hearing of the case nobody opposed this petition. Even otherwise every bidder has right to raise his offer - earlier to its acceptance by the Court. This petition is accordingly allowed.
4. Court had summoned the representatives of all the bidders and in their presence learned counsel for Messrs Accro Textile Mills Limited (the highest, bidder) submitted that his final offer of Rs.275,500,000 was for both sets of properties i.e. the factory and land measuring 20 Kanals and 13 Marlas and further increase, thereof, is not feasible for the bidder. On the other hand, learned counsel for the second highest bidder, Messrs Maqbool Usman Fibers Private Limited came up with an offer of Rs.280,500,000 for both the factory and 20 Kanals and 13 Marlas of land, excluding 37 Kanals above noted land which was offered for purchase at the rate of Rs.1,12,000 per kanal. This offer now being the highest and according to the JOLs and all other present being reasonable, is accepted. Balance bid amount/price shall be paid by Messrs Maqbool Usman Fibers Private Limited within 15 days whereafter necessary documents shall be executed in their favour, in accordance with law. The earnest money/advance deposit with Joint Official Liquidators of Messrs Accro Textile Mills Limited be immediately returned. Case now to come up on 10-1-2005 for further proceedings.