The Hindu : Karnataka / Bangalore News : Plea against order on NGEF withdrawn

Online edition of India's National Newspaper
Wednesday, Mar 01, 2006

Karnataka

Karnataka - Bangalore

Plea against order on NGEF withdrawn

Staff Reporter

BANGALORE: The Karnataka High Court on Tuesday dismissed as withdrawn an appeal by Prestige Garden and Estates Pvt. Ltd. against a single-judge order putting off the auction proceedings of New Government Electric Factory (NGEF) and permitting the Government to submit to it a package to revive the company.

Prestige Garden and Estates, which was the highest bidder for the NGEF, had appealed against the December 22, 2005 order of a single judge giving the Government time till March 2006 to submit a revival package and terminating the auction proceedings.

Highest offer

The single judge, while terminating the auction, said the Government will have to make good the loss on account of termination of the sale proceedings. If the State is unable to place before the court adequate material on a revival package and payment of debt, it will be liable to pay the highest offer received by the official liquidator (appointed by the High Court to conduct the liquidation proceedings) during the auction.

Aggrieved by the order, Prestige Garden and Estates filed an appeal. It said the Government has not placed a revival package. The State has sold through auction several assets of the company, and all that remains is obsolete machinery. There is no workforce, it said and urged a Division Bench to stay the single-judge order. In its statement of objections, the Government said the appeal was filed "with the intention of putting spokes in the affairs of the company". It said the tender notification of November 3, 2005 said the sale of assets of NGEF will be subject to confirmation by the High Court.

The court/official liquidator reserves the right to cancel or reject the highest bid offer or cancel the tender.

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