ISSUE:
Whether the Company Court is empowered to order for a re-auction of the property of the company undergoing winding up process if the price received in the auction is insufficient?
RULE:
The Company (Court) Rules require that the Official Liquidator needs the sanction of the court before proceeding with the sale of the company’s assets by way of an auction under Rule 272 and Rule 273.
In spite of this provision, the Court is obliged to determine whether the price received in the auction is adequate even in the absence of fraud or discrepancies. The Court is empowered to order for a re-auction of the assets if the price received in the auction is not sufficient.