1. MUHAMMAD SHAFI SIDDIQUI, J.---The Official Assignee in his Reference No,7 of 2016 dated 09.11.2016 has prayed for acceptance of offer of Rs,188 Million of Messrs Omni Sugar Mills (Pvt.)
2. Limited plus Rs,5 Lacs as utility charges for purchase of all assets of Messrs Pangrio Sugar Mills Limited. The objections in shape of an affidavit were filed by the judgment debtor through its Chief Finance Officer. In substances the judgment debtor raised following objections: i) That Messrs Joseph Lobo appointed by Official Assignee to conduct valuation of the mill which valued the property at Rs,405 Million and calculated forced sale value at Rs,325 Million is incorrect.
3. The judgment debtor disagreed as it claimed the property to be far in excess. In any event judgment debtor claimed the property could not have been disposed of to a value less than 700 Million and the offer of the auction purchaser is far less than the reserved price of 325 Million. ii) It is further claimed that the notices to the judgment debtor were not issued for approval of terms of Sale Proclamation and that the approval of the Court was also not taken. Iii) That a solitary bid of the auction purchaser was received which by negotiation was enhanced to Rs,188 Million which too was conditional. Iv) That the liabilities of the judgment debtor are 372 Million.
4. These liabilities are in respect of unsecured creditors and the bid should have been at least to the extent of Rs,372 Million and/or forced sale value.
5. I have heard the learned counsel for decree holder, judgment debtor and auction purchaser as well as learned Official Assignee insofar as above objections are concerned and perused the record.
6. The decree in the matter was passed on 26.01.2006 as under:- "That the outstanding liabilities of Messrs Pangrio Sugar Mills Ltd. Would be settled at the forced sale value of Rs,215, 770,000/- on the basis of the decision taken in the 85th meeting held on October 1, 2004 by the State Bank Committee for Resolution of Dispute annexure 'C', Bankers Equity's share in the Forced Sale Value is Rs, 114,099,176/- (against total outstanding liability of Rs, 199,336,373/- as on 31.12.2004). ii) That the payment by the company would be made as per the Statement of Prorata Distribution which has been verified/signed by all secured creditors Annexure "D" in the following manner: a) 10% down payment of settlement amount of Rs,215,770,000/- in which Bankers' Equity's share is Rs,11,409,918/-. b) Balance of Rs,194,000,000/- in 12 quarterly installments in three years. Bankers Equity's share in 12 quarterly installments is Rs, 102,689,258/, iii) That the company will be eligible for any write off/waiver under State Bank Circular No,29 after payment of entire settlement amount of Rs, 215,770,000/- in which Bankers Equity's share is Rs, 114,099,176/- according to the repayment schedule. Iv) In case of any single default in payment of settlement installment, the above arrangements would be cancelled and Bank would be entitled to recover entire outstanding liabilities as per their record/decree issued by the Hon'ble Court. v) That the settlement of liabilities shall be implemented through a consent decree in recovery suit No,B-68/2000 pending before the Hon'ble High Court of Sindh, Karachi."
7. The execution application was filed on 14.04.2008. In August 2008 two weeks' time was granted to the judgment debtor to file objections to the Execution Application. On 20.08.2008 a week's time was again requested to file objections to which the judgment debtor was directed to deposit the decretal amount within one month with the Nazir of this Court and in the meanwhile he was directed to file objections, if any. On 01.11.2011 a suggestion of Mr. Asim Mansoor Khan, counsel for judgment debtor, for payment of the outstanding amount in 12 quarterly installments spreading over a period of three years, was declined in view of the decision of the decree holder as they were dissatisfied on giving remissions in the agreed amount payable in terms of the compromise decree. In terms of order dated 22.11.2011 this Court directed the Official Assignee to auction the mill of the judgment debtor by issuing sale proclamation within 15 days and to pay a sum of Rs,187,926,455/- out of the sale proceeds to the decree holders. The Official Assignee moved Reference No,1/2014 praying for appointment of Joseph Lobo for evaluating the assets of the judgment debtor so that the reserve price be mentioned in the sale proclamation. The said Reference was taken on record on 23.12.2014 without any substantive order.
8. Against the order dated 22.11.2011 High Court Appeal No,10 of 2012 was dismissed on 04.09.2014.
9. Against the said order of learned Division Bench, the judgment debtor filed Civil Petition No,368-K of 2014 wherein a statement was filed by judgment debtor as under:- "1. That, the petitioners are ready and willing to make a payment of Rs, 51,000,000.00 being 50% of the total outstanding of Rs, 102,000,000.00 within one week from today.
2. That the balance of Rs,51,000,000.00 shall be paid within three months from the date of the above payment.
3. In the meanwhile the Official Assignee shall not proceed to sell the mortgaged property."
10. The Hon'ble Supreme Court on 22.01.2015 passed following order:- "... We have heard both the learned ASCs. In the facts and circumstances of the case, it is directed that the matter shall come up for hearing after three months and one week from today and the amount of Rs, 102,00,000/- as admitted by the petitioner owed from the respondents is paid to the official liquidator/official assignee as proposed. The matter shall be decided by us on the next date of hearing on merits ignoring the question of limitation as propounded before the learned High Court. This has been agreed to by both the learned ASCs' for the parties.
11. In the meanwhile, operation of the impugned judgment is suspended subject to payment of first installment of R1.51,000,000/- by the petitioner to the Official Liquidator."
12. Reference No,2/2015 was then filed by the Official Assignee on 13.05.2015 for taking over possession of the assets of Messrs Pangrio Sugar Mills Limited and for appointment of security guards till disposal of the mortgaged property. The first trench, as agreed to be deposited in the sum of Rs,51 Million was not complied with. On this the Official Assignee sent letter dated 14.04.2015 to the judgment debtor to be present at site/Mill on 17.04.2015 for evaluation of the property. Reference No,3/2015 dated 24.06.2015 is in respect of re-auction of the mill on account of lapse of time and since no bid was received in pursuance of earlier sale proclamation of May, 2015. Reference No,04/2015 is in respect of receipt of both the vehicles being the property of the judgment debtor.
13. One offer of the auction purchaser in relation to a sale proclamation of May, 2015 was declined on account of the fact that it was tendered beyond the prescribed time of 1:30 p.m. And in view of such fact permission to re-auction the mill was sought as mentioned in Reference. Reference No,6/2016 is in respect of compliance of order of this Court to the effect of release of pay order in pursuance of earlier auction proceedings of May 2015. Finally the subject Reference No,7/2017 was filed which is in respect of an offer of bidder in pursuance of sale proclamation dated 05.10.2016. The offer by the auction purchaser was enhanced from Rs,185 Million to Rs,188 Million to cover the decretal amount of Rs,187,926,455/-. As against this the judgment debtor has filed objections referred above.
14. Insofar as the reserved price is concerned that was never observed to be made part and parcel of sale proclamation yet both, the value of mill and forced sale value was mentioned. Initially the bid was invited for sale of the mortgaged properties of the judgment debtor on 11.06.2015 pursuant to which no bids were received. However, at around 1:35 a representative of Omni Sugar Mills came and submitted a {{ Incomplete Citation }}