Law: Companies Ordinance, 1984

Section: 33

(a) Companies Ordinance (XLVII of 1984)--Ss. 33(f) & 305---Winding up of company---Auction of assets of company by official liquidators---Confirmation of sale and transfer of bid right in favour of an other party---Objection petition by the company alleging that property was sold at a price entirely disproportionate to the actual value and bid could not be transferred without registration of sale in favour of original bidder---Validity---Sanctity to judicial sale of property is to be maintained as far as possible, however, the Courts have also a duty to ensure that such sales should be seen to have been made in the most fair, transparent, judicious manner and above any suspicion so that the interests of all the stake holders are properly safeguarded---Court cannot ascertain the genuineness or otherwise of the offer---When a bid was withdrawn and company Judge had made it clear that the said bid could not be considered alive, thereafter there were no valid reasons or exceptional circumstances for the revival and acceptance of the offer of same bidder with a nominal increase and to confirm the sale---Matter of withdrawal of bid by the bidder had become a past and closed transaction---Objection taken by the petitioners against the confirmation of sale in favour of the said bidder and its subsequent transfer of the bid rights in favour of another party was not attended to in their proper perspective---Such transfer could not be made without the registration of sale in favour of the said bidder---Auction-purchaser had sold his rights without payment of entire sale price and thus without becoming the owner---Proceedings of re-auction of the assets of the Company by the joint official liquidators suffered from the same defects and infirmities which was noticed by the High Court in respect of earlier auction and re-auction was ordered---Orders of confirmation of sale by the High Court were not sustainable at law in circumstances---Case was remitted to the High Court for a re-sale---Reasons. Per Faqir Muhammad Khokhar, J.--- In the present case Chief Executive of the company was behind the bars on account of criminal proceedings initiated by the National…

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