The Hindu : Business : Upset price for SML assets raised

Online edition of India's National Newspaper
Friday, Aug 12, 2005

Business

Business

Upset price for SML assets raised

Special Correspondent

CHENNAI: The upset price for the sale of movable and immovable properties of the Standard Motors Limited (SML) has been increased to Rs. 142 crore, from the initial Rs. 63 crore by the Madras High Court.

A Division Bench comprising Justice P. Sathasivam and Justice A.R. Ramalingam said, "taking note of the fact that there were offers to the extent of Rs. 141.50 crore, in modification of the earlier order passed, we fix the upset price to the extent of Rs. 142 crore."

The property under liquidation involves 57.84 acres on GST Road and a large number of standing trees, buildings and plant and machinery. The company was ordered to be wound up in October 1996, and a sum of Rs. 63 crore was fixed as upset price.

After a tender process, it was concluded in favour of one Khannaiyann of Coimbatore. However, the bench ordered fresh global tenders after the second highest bidder, the Hyderabad-based Nuziveedu Seeds, questioned the process adopted for awarding the tender to Mr. Khannaiyyann.

The matter came up before the bench on Thursday since no outer time limit for completion of the auction process had been fixed in the earlier order. Fixing the upset price at Rs. 142 crore, the judges directed the official liquidator to issue advertisements in five leading newspapers and added that the tenders must be opened on October 24.

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