The Hindu : Business : Court concludes Standard Motor property sale

Online edition of India's National Newspaper
Thursday, Dec 01, 2005

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Court concludes Standard Motor property sale

Special Correspondent

CHENNAI: The Madras High Court on Wednesday concluded the sale of the 57.94-acre land belonging to the under-liquidation Standard Motor Products of India Limited, and directed the Registration Department to register it in favour of Sriram Properties Limited.

Justice K. Ravirajapandian passed the order after counsel for Sriram Properties, Abbudukumar Rajarathinam, deposited a Demand Draft for the remaining Rs. 139.90 crore in court.

After emerging as the highest bidder by quoting Rs. 154.10 crore for the land, buildings, plant and machinery, Sriram Properties had paid Rs. 14.20 crore as earnest money deposit.

As regards the successful bidder's plea for a court order directing the Official Liquidator to "clarify the status of the property,'' Mr. Justice Ravirajapandian said there was no compelling necessity to clarify the status. Formalising the transfer, he said the sale deed should be executed in a week.

"There is no hindrance at this point of time," he said, adding, "if need arises, it is open for Sriram Properties Limited to approach the court."

He also directed the Official Liquidator to complete adjudication of claims, including that of the workers, within three months.

On his part, the Official Liquidator withdrew his petition praying for recalling a condition, imposed when the land was assigned to Union Co. (Motors) Limited in 1949, that it should not be used for any purpose other than manufacturing motor vehicles and allied products.

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