AUCTION OF PADDY STOCK

OF NSELDEFAULTER: NAMDHARI FOOD

HCC Meeting High Court Committee (HCC) formed by the

Bombay High Court (BHC) to hear the NSEL matters

Plenty of legal proceedings are conducted on regular intervals to resolve & recover the defaulted amount from NSEL defaulters

NSEL Defaulter called for meeting was Namdhari Foods

NSEL Defaulter – Namdhari foods As per BHC order dated 19th May 2015, auction of  paddy

stocks of NSEL Defaulter Namdhari Foods have been approved

The order of BHC have been passed after considering recommendations of HCC

HCC comprises of Retd. Justice VC Daga & eminent solicitors & Chartered Accountants to ascertain NSEL Defaulters dues

M/s. Rattanchand Jain & Sons and M/s. Songara Trading Company were the bidders who showed interested in buying the paddy stocks

Bidders interested in Paddy Stock The matter was listed before Hon’ble

Justices Mr. V. M. Kanade and Smt. Shalini Phansalkar-Joshi

Representative of M/s. Rattanchand Jain & Sons appeared in the matter, upon being offered an opportunity to revise their bids

Their representative stated they had no objection to the bid placed by M/s. Songara Trading Company

Bidding of M/s. Songara Trading Company

The bid placed by M/s. Songara Trading Company at the rate of Rs. 7.500/- per metric ton of paddy was accepted by the Hon’ble Court

M/s. Songara Trading Company deposited a Demand Draft of Rs. 10 lakhs as the initial payment

Court directed M/s. Songara Trading Company to deposit the balance amount within seven days with the Competent Authority

Why BHC reconsidered M/s. Songara’s Bid? Advocate for the M/s. Songara Trading Company

submitted the Notice of Motion, in which the impugned order was passed, was initially listed for 20th May 2015

However, the matter was wrongly listed on board & heard on 19th May, 2015 & the same was recorded in the impugned order to which he drew the Court’s attention

Therefore, M/s. Songara Trading Company could not remain present before the Court

In view thereof, the Advocate for the Appellant requested the Court to reconsider the bid placed by M/s. Songara Trading Company

Courts Order to Bidder M/s. Songara

As the goods are perishable by nature, the Court required an undertaking from M/s. Songara Trading Company that they shall deposit the entire amount within seven days of the acceptance of their offer

Later, M/s. Songara Trading Company as required by the Court, issued an undertaking

Undertaking stated that they have already deposited an initial amount of Rs. 10 lakhs by DD before the Committee

And they shall pay the balance amount within seven days of the acceptance of their offer

Next BHC Hearing In view of the same, the matter was listed for

further hearing on Monday- 24th August 2015 Wherein the successful bidder M/s. Ratanchand

Jain & Sons can also attend the Court & increase their bid if they desire

Conclusion The process of recovery from the NSEL defaulters

need to speed up, as trading clients are awaiting justice

Like the auction of paddy stocks of NSEL defaulter Namdhari Foods, the seized assets of other NSEL defaulters should be auctioned soon

So that the trading clients can get back their money