Bombay HC Directs Auction Of Kakade Construction Company Pvt Ltd's Assets To Repay Dues Of Vistra ITCL

Bombay HC Directs Auction Of Kakade Construction Company Pvt Ltd's Assets To Repay Dues Of Vistra ITCL

The HC had directed the auction of KCCPL’s shares while hearing a plea by Vistra claiming that the former MP’s firm owes it over Rs 780 crore. It sought sale of KCCPL’s shares in compliance of a 2018 consent terms on settlement of dues.

FPJ News ServiceUpdated: Tuesday, July 18, 2023, 03:23 PM IST
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Bombay HC | PTI

Mumbai: The Bombay High Court recently directed fresh auction of shares of former Rajya Sabha MP Sanjay Kakade’s firm, Kakade Construction Company Pvt Ltd (KCCPL), noting that not a single bid was received earlier. The shares are directed to be auctioned to repay dues of Vistra ITCL (India), pursuant to a mutual settlement. 

Justice Manish Pitale, on July 12, also directed the auction of five cars, owned by KCCPL, which were in possession of the court receiver. 

The HC had directed the auction of KCCPL’s shares while hearing a plea by Vistra claiming that the former MP’s firm owes it over Rs 780 crore. It sought sale of KCCPL’s shares in compliance of a 2018 consent terms on settlement of dues. The HC had appointed a court receiver last year and directed sale of shares. 

Pursuant to the order, schedule was fixed for inviting bids in May this year when Kakade sought time contending that he was getting a loan. As the loan didn’t come through, Vistra sought for an auction. 

The bid was scheduled in June, during which no bid was offered. Hence, Vistra sought a re-auction. It informed the HC that Kakade’s five cars are in the court receiver’s possession and that it has paid Rs five lakh towards parking charges. It sought that the same should be auctioned too. 

Kakade’s counsel said they would take an effort to locate the RC books of the said cars. The HC directed a fresh auction, the modalities for which are to be worked out. 

HC Accepts Vistra's Suggestion Of Online Auction

The court has also accepted Vistra’s suggestion to have the auction online as well, wherein bidders will be given 60 days to carry out inspection of the land, documents and other details. The notice regarding the proposed schedule for fresh auction be published in various cities in addition to Mumbai and Pune, the HC added.

“Having considered the submissions, this Court is convinced that a fresh auction/re-bidding of the shares of respondent No.3-Company, needs to be carried out. It is an admitted position that not a single bid was received in response to the advertisement issued as per order dated 05.06.2023,” the judge noted.

The HC has kept the matter for hearing on July 19 for fixing the schedule of auction. Kakade has been directed to remain personally present in the court.

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