2021 (8) TMI 1259 - Tri - Companies Law

Auction - Seeking to direct the Respondent to disclose the entire process of selection of the Anchor Bidder or alternatively to discard the Swiss Challenge Process and adopt the Anchor Bid as reserve price invite bids accordingly and allow inter se bidding amongst the parties - HELD THAT - Since the Liquidator is going for new auction and the tender document allows him to do so the objections of the Applicant in various I.As. No. 332 of 2021 and I.A. No. 371 of 2021 will not survive. It is seen from the record that the sale process is delayed for almost three years. Hence we direct the Liquidator to complete the entire sale process in consultation with stakeholder committee within three weeks from the date of this order - Application disposed off.

Issues:
1. Disclosure of the selection process of the Anchor Bidder
2. Quashing of the Process Document dated 27.03.2021
3. Consideration of offer for the Consolidated Assets and revocation of the Second Swiss Challenge Process
4. Participation in the e-auction Process of the Corporate Debtor
5. Delay in the sale process and initiation of a new auction for Metals & Scrap and Land and Buildings
6. Completion of the entire sale process within three weeks
7. Participation of all parties in the bidding process
8. Fixing appropriate conditions for prospective bidders

Issue 1: Disclosure of the selection process of the Anchor Bidder
In I.A. No. 273 of 2021, HR Commercial Pvt. Ltd. sought disclosure of the selection process of the Anchor Bidder or to discard the Swiss Challenge Process. The Tribunal directed the Respondent to reveal the process or adopt the Anchor Bid as the reserve price and allow inter se bidding among parties under the Liquidator or Tribunal's supervision.

Issue 2: Quashing of the Process Document
I.A. No. 379 of 2021 by M/s. Kanter Steel India Pvt. Ltd. aimed to quash the Process Document dated 27.03.2021 and restrain the Respondent from proceeding with it. The Tribunal granted the prayer to set aside the Process Document and prevent any further steps based on it.

Issue 3: Consideration of offer for the Consolidated Assets
M/s. Welspun Steel Resources Pvt. Ltd. filed I.A. No. 445 of 2021 to direct the Liquidator to consider its offer for the Consolidated Assets and to cancel the Second Swiss Challenge Process. The Tribunal ordered the Liquidator to accept the offer and revoke the Second Swiss Challenge Process.

Issue 4: Participation in the e-auction Process
In I.A. No. 527 of 2021, M/s. Chinar Steel Segment Centre Pvt. Ltd. requested participation in the e-auction Process of the Corporate Debtor. The Tribunal directed the Respondent/Liquidator to allow the Applicant to take part in the e-auction Process.

Issue 5: Delay in the sale process and initiation of a new auction
The sale process faced a significant delay of almost three years. The Liquidator proposed a new auction to sell Metals & Scrap and Land and Buildings at Dahej together, aiming to save time and maximize value for stakeholders. The Tribunal directed the Liquidator to complete the sale process within three weeks in consultation with the stakeholder committee.

Issue 6: Completion of the entire sale process within three weeks
Acknowledging the prolonged delay, the Tribunal mandated the Liquidator to finalize the entire sale process within three weeks from the date of the order.

Issue 7: Participation of all parties in the bidding process
All parties involved were permitted to participate in the bidding process, ensuring transparency and fair competition among bidders.

Issue 8: Fixing appropriate conditions for prospective bidders
The Tribunal emphasized that the Liquidator could impose suitable conditions on prospective bidders to verify their bona fide intentions, ensuring a legitimate and competitive bidding environment.

In conclusion, the Tribunal disposed of I.A. No. 273 of 2021, I.A. No. 379 of 2021, I.A. No. 445 of 2021, and I.A. No. 527 of 2021. The matter was scheduled for further consideration of I.A. No. 332 of 2021 and I.A. No. 371 of 2021 on 31st August 2021.

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