APHC010556562023 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI r WEDNESDAY. THE TWENTY THIRD DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT HONOURABLE SRI JUSTICE CHALLA GUNARANJAN COMPANY APPLICATION No: 48 OF 709? IN COMPANY PETITION No.171 of 2011 In the matter of the Companies Act. 1956 and In the matter of M/s. Pioneer Alloy Castings Limited (In Liquidation) Between: M/s. Pioneer Alloy Castings Ltd, (In Liqn.) Rep. by the Official Liquidator, High Court of Judicature at Amaravati for the State of Andhra Pradesh ...Applicant AND 1. The Assistant General Manager. State Bank of India SAM Branch-ll, D.N0.3-4-1013/A. Commuter Amenity Center (CAC). TSRTC Bus Station. Kachiguda. Hyderabad - 500 027. 2. The Sr. Vice President. Canbank Factors Ltd.. Casa Blanca. No. 11/19. Casa Major Road. Egmore. Chennai 600 008. ...Respondents Company Application under Section 457 (1) (c) of the Companies Act. 1956 read with Rules 9 and 11 (b) of the Companies (Court) Rules. 1959 praying that this Hon’ble Court may be pleased to: Dispose the C.A.No.579/2018 filed by the Official Liquidator praying to sale the Land and Building and Plant and Machinery of the (in liquidation) based on the valuation report made on 02-07-2018 and subsequent Official Liquidator report No. 16/2022 dated along with valuation report of Plant and Machinery submitted Er.N.S.Vaidyanathan as per the directions of the Hon'ble Court (') company 22-04-2022 by the as the earlier valuation report dated 02-07-2018 Building is more than 5 pertaining to Land and years old and valuation report dated 22-04- 2022 for Plant and Machinery is more than one and half year old and the same may not reflect actual present value of the assets of the company (in liqn.,) (ii) Permit the Official Liquidator to place the fresh submitted by State Bank of India before this necessary directions with regard to sale of assets subject company (in liqn.) and the fee of the valuer the Secured creditor i.e.. State Bank of India as agreed in the creditors meeting held on 10-10-2023. Order that the costs of this application do the company Counsel for the Petitioner: SRI T.V.P SAI LIQUIDATOR) Counsel for Respondent No.1: SRI S. SATYANARAYANA Counsel for Respondent No.2: SRI P. BADRINATH Counsel for Intervening Applicants: SRI Y. KOTESWAR The Court made the following : valuation report to be Hon'ble Court for properties of the shall be borne by (iii) come out of the assets of VIHARI (SC FOR OFFICIAL MOORTHY RAO APHC010556562023 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3506] WEDNESDAY,THE TWENTY THIRD DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE CHALLA GUNARANJAN COMPANY APPLICATION NO: 48/2023 Between: 1.M/S.PIONEER ALLOY CASTINGS LTD, , (IN LION.) REP. BY THE OFFICIAL LIQUIDATOR, JUDICATURE AT AMARAVATI FOR THE STATE OF ANDHRA PRADESH HIGH COURT OF ...APPELLANT AND 1.THE ASST GENERAL MANAGER, STATE BANK OF INDIA, SAM BRANCH-II, D.N0.3-4-1013/A, COMMUTER AMENITY CENTER (CAC) TSRTC BUS STATION, KACHIGUDA, HYDERABAD - 500 027. 2.THE SR VICE PRESIDENT, CANBANK FACTORS LTD., CASA BLANCA, NO.11/19, CASA MAJOR ROAD, EGMORE, CHENNAI 600 008 ...RESPONDENT(S); Let all the parties concerned attend the sitting Judge in Chamber/Court on day of 2023 at Clock in the noon for the hearing of an application filed by the applicant above named, for an order to Dispose the C.A.No.579/2018 filed by the Official Liquidator praying to sale the Land and Building and Plant and 2 C.O.M.P.A.NO.4^1^ • Machinery of the company (in liquidation) based on the valuation report made on 02-07-2018 and subsequent Official Liquidator report No. 16/2022 dated 22-04-2022 along with valuation report of Plant and Machinery submitted by the Er.N.S.Vaidyanathan as per the directions of the Hon'ble Court, as the earlier valuation report dated 02-07-2018 pertaining to Land and Building is more than 5 years old and valuation report dated 22-04-2022 for Plant and Machinery is more than one and half year old and the may not reflect actual present value of the assets of the company (in liqn.,) Permit the Official Liquidator to place the fresh valuaton report to be submitted by State Bank of India before this Hon'ble Court for necessary directions with regard to sale of assets properties of the subject company (in liqn.) and the fee of the valuer shall be borne by the Secured creditor i.e.. State Bank of India as agreed in the creditors meeting held on 10-10-2023. order that the costs of this application do come out of the assets of the company and Pass lA NO: 1 OF 2024 same Petition under Section 151 CPC circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased Pleased to permit the official Liquidator to amend/ alter/ modify the sale notice to be displayed on web portal as per the procedure norms of the e- auction service provider and pass lA NO: 2 OF 2024 praying that in the Petition under Section 151 CPC circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased Let all the parties concerned attend the sitting Judge in Chambers/Court on day of May, 2024 at O’clock in the noon for the hearing of an application filed by the applicant above named for an order to: approve the highest offer of Kemin Industries South Asia Private Limited for Rs.17,10,46,000/- (Rupees Seventeen Crores Ten Lakhs Forty Six Thousand only) in respect of Lot No.3 i.e. Consolidated and praying that in the 3 CGR,J C.O.M.P.A.NO.48OF2023 Composite of entire assets / properties as mentioned in Lot No.1 & Lot No.2 and directions may kindly be issued to the above successful bidder to deposit the balance sale consideration of Rs. 16,18.13,000/- after adjustment of EMD of Rs.92,33,000/- within a period of 30 days as per the terms and conditions of sale or within such time as decided by this Hon’ble Court, since the offer of Lot No.1 and Lot No.2 are not accepted as it is on lower side (less than 63.4%) compared with Lot No.3. Sale of assets / properties may kindly be confirmed in favour of Kemin Industries South Asia Private Limited for Lot No.3 (Consolidated and Composite of entire assets / properties mentioned in Lot No.1 & Lot No.2) subject to deposit of balance sale consideration as mentioned above within a period of 30 days or within such time as decided by this Hon’ble Court; Permission may kindly be granted to the Official Liquidator to handover the possession of assets of the company (in liqn.) in respect of Lot No.3 (Consolidated and Composite of entire assets / properties as mentioned in Lot No.1 & Lot No.2) to the successful purchaser viz., Kemin Industries South Asia Private Limited, after receipt of entire sale consideration' permission may kindly be granted to the Official Liquidator to refund the EMD amounts of 2nd & 3rd highest bidders of Lot No.3 after receipt of balance sale consideration from the successful purchaser; permission may kindly be granted to the Official Liquidator to refund the EMD amount of 1st, 2nd and 3rd highest bidders Lot No.1 and Lot No.2, after confirmation of sale of Lot No.3 {Consolidated and Composite of entire assets / properties mentioned in Lot No.1 & Lot No.2) since the offer of Kemin Industries South Asia Private Limited for Lot No.3 is accepted as highest bid / offer which is more than 63.4% of total offer received in respect of Lot No.1 & Lot No.2 (both) as detailed in Para 11 & 12. order that the cost of this application do come out of the assets of the company; and Pass lA NO: 3 OF 2024 4 C.0.M.P.A.N0.43t|t Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased o suspend the operation of the order dt.9-5-2024, passed i: LA.No.2 of 2024 in Company Application No.48 of 2023 i;; C.P.No. 171 of 2011, in respect of the petitioner’s plant & machinery etc., given below; List of Machineries/Equinments/Infrastructures material Moulding Boxes - ISONo’s (ARPA 1300/ARPA/Machines Pallet Cars, Sand incentive Automatic Mixture for sand plant Core Sand Mixture Pallet Car Tracks ECO (5Ton - 2nos. 1- Scrap loading + unloading 2- Cuppola Metal Handing Structures for EOT Crane Cuppola Blast furnace -2No’s with blowers other infrastructure Moulding Machine Iset Transfer Laddie capacity Spectrometer ARL 3460 International standard sample - 6 no’s DELL High end computer connected to spectrometer. License Software for Spectrometer UPS - 10KV to spectrometer A/C -2 no’s 17. Nodularity tester -2 no’s Brinnell Hardness tester -1 No. ATLAS - CAPCO air Compressor -1 No. Extension North and South Bay Industrial Shed -(All Steel Fabricated Material and Roofing Sheets) Bull Earth Moving equipment fitted tractor Tractor -2 no’s Forklift -2 no’s Core sand Mixer - Ino. Heat Treatment Furnace -1 no. Radial drilling machine -1 no. Lathe - 1 no. Short Blasting machine - Ino. Magnetic separator - 1 no. Knockout machine -2 no’s Different products Tooling -33 sets Pending the Interlocutory Applications filed by the petitioner before this Hon’ble Court for taking possession of building, plant & machinery, etc., belongs to the petitioner, and pass lA NO: 4 OF 2024 1. m m 1 tone on Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to grant permission to the petitioner to take possession of the plant & machinery, etc., situated at Unit —II, Gummidipoondi, Thiruvallur District, Tamil Nadu, into the custody of the petitioner, the following plant & machinery etc; List of 5 CGR,J C.0.M.P.A.N0.48 OF 2023 Machineries/Equinments/lnfrastructures material Boxes - ISONo’s (ARPA 1300/ARPA/IVlachines Sand incentive Automatic Mixture for sand plant Core Sand Mixture Pallet Car Tracks ECO (5Ton - 2nos. 1- Scrap loading + unloading 2- Cuppola Metal Handing Structures for EOT Crane Cuppola Blast furnace -2No’s with blowers other infrastructure Moulding Machine Iset Transfer Laddie - 1 tone capacity Spectrometer ARE 3460 International standard sample - 6 no’s DELL High end computer connected to spectrometer. License Software for Spectrometer UPS - lOKV to spectrometer A/C -2 no’s Nodularity tester -2 no’s Brinnell Hardness tester -1 No. ATLAS - CAPCO air Compressor -1 No. Extension North and South Bay Industrial Shed -(All Steel Fabricated Material and Roofing Sheets) Bull Earth Moving equipment fitted on tractor Tractor -2 no’s Forklift -2 no’s Core sand Mixer - I no. Heat Treatment Furnace -1 no. Radial drilling machine -1 no. Lathe - 1 no. Short Blasting machine - Ino. Magnetic separator - 1 no. Knockout machine -2 no’s Different products Tooling -33 sets And pass 1. Moulding Pallet Cars, lA NO: 5 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased permit the Official Liquidator to execute a Deed of Conveyance for the Leasehold land to an extent of Ac.6.00 cents together with Buildings including Compound Wall and Plant & Machinery situated at Plot No.B-39, SIPCOT Industrial Complex, Gummidipoondi, within the village limits of Pappankuppam and Karumbukuppam, Thiruvallur District, Tamilnadu in favour of the purchaser viz., Kemin Industries South Asia Private Limited ; direct the State Industries Promotion Corporation of Tamilnadu Limited (SIPCOT) to substitute the name of purchaser Kemin Industries South Asia Private Limited lessee in the place of M/s.Pioneer Alloy Castings Limited (In Liqn) in their records for the remaining lease period; 6 C.O.M.P.A.NO.4^. order that the cost of this application do come out of the assets of the company ; and as Pass lA NO: 1 OF 20Pfi Petition under Section 151 CPC i circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased Reased to Direct the Official Liquidator of Pioneer Alloy Castings Limited{ln Liquidation) to Transfer the Sale Proceeds of Rs. 17 Crores to the Petitioner Bank , which were received by the Official Liquidator through Auction Dated 23-04-2024, belongs to the Respondent Company through Official Liquidator, in which the Auction of the Property Mortgaged to the Sold, praying that in the Petitioner Bank I.e assets located at SIPCOT Industrial Estate Gummidipoondi, Tamil Nadu, to satisfy part of the amount as per the Recovery Certificate issued by the Honble DRT inOANo. 423of2013,and to was Hyderabad pass Counsel for the Appellant: 1 .T V P SAI VIHARI(SC FOR OFFICIAL LIQUIDATOR) Counsel for the Respondent(S): 1.S SATYANARAYANA MOORTHY 2.Y KOTESWAR RAO 3.PBADRINATH The Court made the following: 7 CGR,J C.0.M.P.A.N0.48 0F 2023 ORDER: Learned counsel for the applicant submits that, in view of the subsequent developments as assets of company liquidation have been put to public auction and sold, nothing survives in this application. Sri Y.Koteswar Rao, learned counsel for intervening appiicants, who opposed the sale of assets, submits that as against the rejection order in intervening application, appeal has been preferred ih O.S.A.Nos.2 & 4 of 2025, which are pending, hearing in present application may be deferred. In view of the same, as no further orders need to be passed, the application is stands closed. However, the respondents/intervening applicants are granted liberty to seek revival of the application in the case O.S.As. are allowed in their favour. There shall be no order as to costs. As a sequel, miscellaneous applications, pending if any, shall stand closed. 2. 3. Sd/- S.V.S.R.MURTHY JOINT REGISTRAR //TRUE COPY// SECTION OFFICER To, 1. The Official Liquidator M/s. Pioneer Alloy Castings LTD, (In Liqn.), Rep. by the Official Liquidator, High Court of Judicature at Amaravati for the State of Andhra Pradesh 2. The Registrar of Companies, Ministry of Corporate Affairs, Government Floor, Corporate Bhawan, Nagole, Bandlaguda, Thattiannaram Village, Hayathnagar Mandal, Ranga Reddy District, Telangana State Pin Code-500 680 nd of India, 2 9 3. The Regional Director, South Eastern Region, Ministry of Corporate Affairs, 3'^^ Floor, Corporate Bhawan, N9agole, Bandlaguda, Thattiannaram Village, Hayathnagar Mandal, Ranga Reddy District, Telangana State Pin Code-500 680. 4. One CC to Sri T.V.P.Sai Vihari (SC for Official Liquidator), Advocate [OPUC] 5. One CC to Sri S.Satyanarayana Moorthy, Advocate [OPUC] 6. One CC to Sri Y.Koteswar Rao, Advocate [OPUC] 7. One CC to Sri P. Badrinath. 8. Three CD Copies MV sree \ HIGH COURT DATED;23/07/2025 \ \ 2 1 AUG 2025 ORDER COMPA NO. 48 OF 2023 a: m o C9 ^ . Current Section ^ CLOSING THE COMPANY APPLICATION