9911796707
TMI Blog2022 (8) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... pany known as IL&FS Engineering and Construction Company Limited. The respondent no.2 Company is a Core Investment Company. It conducts its business from a network of subsidiaries and joint venture entities. Respondent no.3 is one of its subsidiaries. In the month of September, 2018, the credit rating of respondent no.2 was downgraded to 'D'. On or about October 01, 2018, respondent no.1 filed Company Petition No.3638 of 2018 with the National Company Law Tribunal, Mumbai Bench (NCLT) under section 242 of the Companies Act, 2013. Under order dated October 01, 2018, the NCLT superseded the existing Board of Directors of respondent no.2 by appointing the nominees named by the respondent no.1. The new Board of Directors of respondent no.2 subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e done as per the scheme set out in the affidavit dated January 25, 2019 filed by respondent no.1 before NCLAT. The basis on which the eligibility criteria has been decided has not been clarified in the invitation document. The action of respondent nos.2 and 3 has resulted in an inequitable situation where the unknown 'initial bidder' has been effectively exempted from the transparent sale process and has had ample opportunity to conduct it with due diligence. The other bidder such as the petitioner shall begin with a disadvantage as they are entering into the sale process much after the unknown disclosed 'initial bidder'. 4. It is further contended by the learned counsel for the petitioner that the entire purpose behind a fair and transpa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Companies Act. They are not amenable to the writ jurisdiction of this court. It is contended that earlier two times the advertisements were issued. However, no effective buyers were received. This is the third time advertisement is issued for the 42.25% stake. One offer has been received i.e. the binding offer from the prospective buyer for acquisition of 42.25% of the stake. If the price is known, the other bidders, if they want to quote a higher price, would thereafter be dissuaded from quoting higher price. The petitioner or the other bidders would not be at disadvantage. After the Expression of Interest is submitted by the tenderers, the interested party, subject to compliance with the rules of the data room, will be provided with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the due diligence exercise, the eligible applicants will be required to submit their binding financial offers. Under step 4, new buyer will follow the bids which shall contemplate various aspects. Under step 5, successful applicants are declared by the new board. Under step 6, approval of NCLT for conclusion of sale and transfer of title relating to shareholding of IL&FS group in that Sale Company would be required. Under step 6, payment of financial bid amount by the successful applicant to a designated account will be required to be made and under step 7, payment of financial bid amount by Successful Applicant to a designated account will be required to be made and under step 8, distribution of financial bid amount will be undertaken w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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