Regulation 33 - Mode of sale - Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016

Mode of sale 33. ( 1) The liquidator shall ordinarily sell the assets of the corporate debtor through an auction in the manner specified in Schedule I. (2) The liquidator may sell the assets of the corporate debtor by means of 1 [ private sale only after prior consultation with the consultation committee under regulation 31A, in the manner specified in Schedule I when ] - (a) the asset is perishable; (b) the asset is likely to deteriorate in value significantly if not sold immediately; 2 [ or ] 3 [****] (d) the prior permission of the Adjudicating Authority has been obtained for such sale: Provided that the liquidator shall not sell the assets, without prior permission of the Adjudicating Authority, by way of private sale to- (a) a related party of the corporate debtor; (b) his related party; or (c) any professional appointed by him. (3) The liquidator shall not proceed with the sale of an asset if he has reason to believe that there is any collusion between the buyers, or the corporate debtor's related parties and buyers, or the creditors and the buyer, and shall submit a report to the Adjudicating Authority in this regard, seeking appropriate orders against the colluding parties. ************** NOTES:- 1. Substituted vide Notification No. IBBI/2023-24/GN/REG112 dated 12-02-2024 before it was read as, private sale in the manner specified in Schedule I when 2. Inserted vide Notification No. IBBI/2023-24/GN/REG112 dated 12-02-2024 3. Omitted vide Notification No. IBBI/2023-24/GN/REG112 dated 12-02-2024 before it was read as, (c) the asset is sold at a price higher than the reserve price of a failed auction; or