2020 (9) TMI 1181 - Tri - Insolvency and Bankruptcy

Restraint on Respondent Liquidator to create any third party interest by way of auction, sell or proceed to deal with the property otherwise or deal with the EMD remitted by Applicant - liability to pay the sum of ₹ 6 Lakhs to the Liquidator over and above the successful bid amount of ₹ 130 Lakhs - HELD THAT - It is seen that the Applicant has paid a sum of ₹ 10 Lakhs as EMD and the remaining sum of ₹ 120 Lakhs is yet to be paid and the Counsel for the Applicant has submitted that they are ready with the amount to be paid to the Liquidator. Taking into consideration, the said representation, we direct the Applicant to pay the remaining amount of ₹ 120 Lakhs to the Liquidator within seven days from the date of receipt of the Order. Further, the Applicant is also directed to pay a um of ₹ 6 Lakhs to the Liquidator towards Maintenance Security Deposit within the said period of 7 days from the date of receipt of this order and the same to be remitted to DLF. Upon receiving the total bid amount and the Maintenance Security Deposit, the Liquidator is directed to execute the sale deed and hand over the possession of the property along with title documents within a period of 7 days thereafter and further it is clarified that the Liquidator will pay the pending tax arrears to MCD as undertaken. Application disposed off.

Summary

Issues:
1. Urgent hearing of Application IA/637/2020 under Rule 11 r/w Rule 13 of NCLT Rules 2016.
2. Relief sought under Section 60(5) of IBC, 2016 regarding property auction.
3. Dispute over additional payment of Maintenance Security Deposit by successful bidder.
4. Pending payment of bid amount and resolution of tax arrears.

Analysis:
1. The Applicant filed IA/638/2020 seeking urgent hearing of IA/637/2020 under NCLT Rules 2016. The Tribunal allowed IA/638/2020 due to the urgency expressed by the Applicant.

2. IA/637/2020 sought relief under Section 60(5) of IBC, 2016 related to the property auction. The Applicant requested to restrain the Liquidator from creating third party interests, asserting successful bid status, seeking possession of property, and monitoring ongoing proceedings.

3. The dispute arose over the Liquidator demanding an additional sum of &8377; 6 Lakhs as Maintenance Security Deposit from the Applicant, beyond the bid amount of &8377; 130 Lakhs. The Tribunal analyzed the Process Memorandum terms, confirming the requirement of the additional deposit, and directed the Applicant to pay the said amount to the Liquidator.

4. Regarding pending payments, the Applicant had remitted &8377; 10 Lakhs as EMD and was directed to pay the remaining &8377; 120 Lakhs within seven days. Additionally, the Applicant was instructed to pay the &8377; 6 Lakhs Maintenance Security Deposit within the same period. Upon full payment, the Liquidator was mandated to execute the sale deed, hand over property possession, and settle tax arrears within specified timelines.

This comprehensive analysis highlights the legal proceedings, the relief sought, the dispute resolution over additional payments, and the directives issued by the Tribunal regarding pending payments and property possession.