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TMI Blog2020 (1) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... property as compared to the timeline set for the auction of four properties, especially when the information of public auction had been made public during the previous round of auction - The Liquidator has publicly advertised the auction by publishing the auction notice in the Business Standard circulated in Delhi and Jaipur. Further, the condition that the balance sale consideration has to be paid within 15 days is only a procedural provision in Schedule-I and if the Liquidator, for justified reasons deems it fit to increase the period of payment as it would help maximize participation and returns of the auction, then the Liquidator in his discretion can be allowed to do so, especially in light of the power given to the Liquidator to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, furniture and fixtures at factory plot No - 135, Industrial Estate, Sector- 59, Phase - II, Faridabad, Haryana with reserve price of ₹ 8.23 crore ( Asset 3 ) d. Plant and machinery located at Plot No. 135, Industrial Estate, Sector-59, Phase-II, Faridabad, Haryana for reserve price of ₹ 55.24 lakh ( Asset 4 ) ii. As per the e-auction process information document, dated 15.02.2019, the following timetable was to be followed for the e-auction process: a. Public announcement of auction- 15.02.2019 b. Opening of auction portal and availability of e-auction document- 15.02.2019 c. Submission of bid forms and declaration forms - 15.02.2019 to 22.02.2019 d. KYC declaration and d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Letter of Intent - 16.04.2019 to 22.04.2019 i. Return of EMD for unsuccessful bidders - 16.04.2019 to 22.04.2019 j. Payment of balance consideration by successful bidder -22.04.2019 to 21.05.2019 iv. The Liquidator while conducting second auction in April committed the following violations: a. The Liquidator arbitrarily reduced the reserve price of Asset 1 from ₹ 7.24 crore to ₹ 6.15 crore with sole objective to give favour to pre-decided buyer. b. The Liquidator deliberately did not disclose the area of the asset in the public advertisement so that maximum bidders could not participate in the bidding process and asset could have been sold to a known bidder. c. The Liquidat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal cancels the auction, dated 15.04.2019 and directs the Liquidator to conduct a fresh auction of Asset 1 in a transparent manner. 2. The Liquidator has filed the following reply to the application: i. In the auction, dated 26.02.2019, only Asset 4 could be sold and the auction of the other three assets failed. Meanwhile, the secured creditors intimated the Liquidator that they wanted to realize their security under Section 52 of the Code. Thus, SIDBI, holding charge over asset 2 and Corporation Bank, holding charge over Asset 3, proceeded to realize their securities. In view of these developments, only Asset 1 was left to be auctioned by the Liquidator in the second auction held in April. ii. The Liquidator fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s aggrieved by the shorter timelines, the Applicant could have written to the Liquidator for extension of time as the Liquidator is empowered to amend the timelines. vi. The time for making full payment was increased in the interest of the prospective bidders to ensure maximum participation. vii. The Applicant is working in collusion with the ex-director Vikrant Mahajan of the Corporate Debtor with a motive to derail the liquidation process. This is substantiated by the fact that Vikrant Mahajan sent an e-mail dated 20.04.2019 to the Liquidator 3. We have heard the arguments of both parties and perused the documents. The objections made by the Applicant to the auction process does not stand in light of the justifi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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