The Bombay High Court formed a committee to resolve legal matters related to the National Spot Exchange Limited (NSEL) default. The committee, known as the High Court Committee, was discussing the auction of paddy stocks from NSEL defaulter Namdhari Foods. Two bidders expressed interest, and Songara Trading Company was selected with a bid of Rs. 7,500 per metric ton. However, Songara argued they could not attend the previous hearing. The court accepted their bid upon receiving an undertaking from Songara to deposit the full payment within seven days. The next hearing was scheduled to allow the other bidder to increase their offer if desired.

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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