HC defers auction of PAL-Peagout property at Kalyan till Dec 10

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Mumbai, Nov 27 (UNI) The Bombay High Court today deferred till December 10, the auction sale of PAL-Peagout property in Kalyan, expected to fetch over Rs 700 crore, as some bidders have raised doubts over the terms and conditions related to payments of liabilities of the company.

Under directions of the High Court in an earlier round of litigation, the official liquidator had invited sealed proposals for auction sale of the company's property at Kalyan. But, raising doubt over terms and conditions of company's liabilities, Citra Developers has moved the court saying that the official liquidator had not disclosed all liabilities and there was no clarity on whether the buyer will have to pay the debts irrespective of the bid price or not.

After hearing counsels for Citra Developers, ICICI Limited, the debenture holding company, and other stakeholders, Justice S J Wajifdar had, in morning session, allowed the conduct of the auction slated in the afternoon, and had also directed the liquidator to disclose all known liabilities to the bidders before opening their offers.

But, when the liquidator disclosed debts of Rs 356 crore, including Rs 122 crore dues to the workers and staff members of the company, again a question as to whether the buyers will have to pay that amount seperately or not stalled the proceedings.

After objections were raised by some bidders, the liquidator chose to move the court again in the closing hours. At that juncture, Justice Wajifdar postponed the auction saying that it would not be proper to pass any order over the payments of dues in a hurry.

The court has now adjourned hearing on plea filed by Citra Developers till December 4 and the auction will now be held on December 10.

The PAL-Peagout property on the periphery of Kalyan city, was expected to fetch over Rs 700 crore and eight bidders have put up their proposals. The bidders include Kohinoor, owned by Shiv Sena leader Manohar Joshi, Nirmal Lifestyles and DLF Limited.


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