9911796707
TMI Blog2021 (8) TMI 988X X X X Extracts X X X X X X X X Extracts X X X X ..... Mohan Acharya, the Liquidator of Amrit Feeds Limited (in Liquidation). 2. This Adjudicating Authority vide order dated 22nd October, 2019 admitted the Corporate Debtor in Corporate Insolvency Resolution Process (CIRP). Thereafter on 19th February, 2021 an order of liquidation was passed in respect of the Corporate Debtor and Mr. Sunil Mohan Acharya was appointed as the Liquidator of the Corporate Debtor. 3. The Ld. Counsel for the applicant submits that by an e-mail dated 7th June, 2021 the respondent forwarded the sale notice dated 2nd June, 2021 for the assets of the Corporate Debtor (In Liquidation). Thereafter on 29th June, 2021 by an email dated 29th June, 2021 the respondent No. 1 forwarded the sale notice dated 28th June, 2021 for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... document and that a fresh e-auction shall be held for the said property. 6. The Ld. Counsel for the applicant further submits that the applicant was declared as successful bidder. However, the respondent has cancelled the said e-auction without any reasons after the applicant was declared as the successful bidder. Such cancellation of e-auction is in violation of the Liquidation Process Regulations. The Liquidator has not acted in a fair manner arbitrarily and since the applicant has been declared as successful bidder, the Liquidator has no reason to cancel the e-auction of the said assets. In these circumstances the applicant named above filed this application before this Adjudicating Authority for grant of the following reliefs:- i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f schedule 1 specified the manner in which the auction is required to be conducted. Sub clause (12) really does not vest the Liquidator with a discretion to cancel an auction or to revisit the invitation to the highest bidder once the highest bidder is identified. 10. Regulation 33(3) of the Liquidation Regulation stipulates that 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 buyers, and shall submit a report to the Adjudicating Authority in this regard, seeking appropriate orders against the colluding parties. 11. However, in the present proceedings there is no whiff of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h reads as follows:- "The Liquidator has absolute right to accept or reject any or all bids or adjourn/postpone/cancel the E-Auction or withdraw any asset/property or portion thereof from the E-Auction at any stage without assigning any reason thereof." 13. Mr. Krishnaraj Thaker vehemently argued that even under the earlier Companies Act, 1956 such discretion was vested in the Official Liquidator. This argument cannot be countenanced because under the Companies Act, 1956 the notice of auction was to be vetted by the Hon'ble High Court and the final confirmation of sale was also in the hands of the Hon'ble High Court. Such is not the case under the Insolvency and Bankruptcy Code and the Regulations, which constitute a complete cod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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