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TMI Blog2021 (11) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration within 90 days as per the amended Liquidation Regulations, when the Liquidation Regulations as at 01.04.2018 (old) is applicable to the present Corporate Applicant Which stipulate a time limit of only 15 days from the date of demand i.e. the signing of the LoI. This Adjudicating Authority not inclined to give benefit of provision of 90 days to pay balance sale consideration as per amended clause 12 of Schedule I of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. Relying on Circular issued by the IBBI, it is held that benefit cannot be granted as the liquidation order in the proceeding was passed before the amendment dated 25.07.2019 benefit under amended clause 12, could not be granted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 asset, in E- auction held on 26th February 2021. Submissions made by Applicant: 2. The Applicant states and submits that this Tribunal vide order dated 30.07.2018, ordered Liquidation of the Corporate Applicant and Applicant herein appointed as the Liquidator. 3. It is pertinent to note that as on the date of Liquidation of the Corporate Applicant, the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016 amended upto 01.04.2018 ( Liquidation Regulations as at 01.04.2018 ) is applicable. 4. That in the Regular course of Liquidation, the Applicant herein issued as E- Auction sale notice dated 19.11.2019 for the E-Auction scheduled to be held on 05.12.2019, for inter-alia the auction sale of the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2021, successful bids were received for both Lot 1 and Lot 2 assets and the same were accordingly sold for ₹ 3.10 crores and ₹ 41.25 crores, respectively. The Applicant on behalf of the Corporate Applicant issued Letter of Intent ( LoI ) dated 03.03.2021. 6. Further Applicant submits that the successful bidders of both the Lot 1 and Lot 2 assets were allotted a time limit of 90 days to pay the entire sale consideration as per the amended Liquidation Regulations and thus, the LoIs were executed stipulating 90 days period to pay the balance sale consideration, however, the same being subject to approval by this Tribunal. 7. It is further submitted that since the Liquidation commencement date of the Corporate Applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h demand: Provided that payment made after thirty days shall attract interest at rate of 12% Provided further that the sale shall be cancelled if the payment is not received within ninety days. 8. Thus, from a perusal of the above extract of the Liquidation Regulation as at 01.04.2018 (applicable) and the amended Liquidation Regulation in juxtaposition to each other, it is clear that due to a change in law, the present circumstances requires indulgence of this Tribunal to ratify and allow the Auction Sale of the Lot 1 and Lot 2 assets of the corporate Applicant, since the Applicant herein is not empowered as a Liquidator to accommodate the requests of the successful bidders to pay the balance sale consideration within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et 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. Schedule I relates to Auction. Clause 12- earlier read as follows: (12) On the close of the auction, the highest bidder shall be invited to provide balance sale consideration within fifteen days of the date when he is invited to provide the balance sale consideration. On payment of the full amount, the sale shall stand completed, the liquidator shall execute certificate of sale or sale deed to transfer such assets and the assets shall be del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resses and on website of the IBBI) Dear Madam / Sir, Sub: Applicability of the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2019 notified on 25th July, 2019. The Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2019 (Amendment Regulations) on 25th July, 2019. They came into force on the date of their publication in the Official Gazette, that is, on 25th July, 2019. 2. The stakeholders have expressed a difficulty in applying the Amendment Regulations to a liquidation process, which commenced before 25 th July, 2019. It is reiterated that the provisions of the Amendment Regulations are not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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