2024 (7) TMI 1583 - SCH - IBC

Collusion between the bank officials and the auction purchaser - managed show - lack of transparency - HELD THAT - It is not inclined to entertain this question in view of the fact that the order of the Recovery Officer cancelling the auction has been fully affirmed by the High Court. The auction property has been restored to its original status and is now subject to such orders that may be passed by NCLT/NCLAT in the pending proceedings. The petitioner shall be at liberty to apprise the Tribunals about the estimated market value of the property and and/or other initiatives as may be deemed appropriate for the revival of the industry. The Special Leave Petition is disposed of.

Summary

In the Supreme Court case presided over by Hon'ble Mr. Justice Surya Kant and Hon'ble Mr. Justice Ujjal Bhuyan, the Court addressed a Special Leave Petition. The petitioner, represented by Mr. P.S. Patwalia, Sr. Adv., argued for a probe into alleged collusion between bank officials and the auction purchaser, claiming the auction was a "managed show" and lacked transparency. However, the Court declined to entertain this issue, noting that the Recovery Officer's order canceling the auction was affirmed by the High Court. The property in question has been restored to its original status and is now subject to orders by NCLT/NCLAT in ongoing proceedings. The petitioner is allowed to inform the Tribunals about the property's estimated market value or pursue other initiatives for industry revival. Consequently, the Special Leave Petition and pending interlocutory applications are disposed of.