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TMI Blog2022 (8) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... take of respondent no.2 and 3 in the Company known as IL FS Engineering and Construction Company Limited is published pursuant to the Proposed Resolution Framework for IL FS group filed before the NCLT. Under Clause V proposed process for Asset Level Resolution is spelt out. The petitioner has failed to submit Expression of Interest. If the petitioner has any legitimate objection to the sale, then it is for the NCLT to consider it in terms of payment of financial bid amount by the successful applicant to a designated account will be required to be made, and it is for the NCLT to consider whether sale has been conducted in a fair and transparent manner and according to the resolution. Petition disposed off. - WRIT PETITION NO.2448 O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort was submitted to the NCLAT. The resolution framework report provided for monetizing the assets of respondent no.2 and its group companies. Pursuant to the same, the advertisement is issued for sale of 42.25% stake in the Company and the invitation document. 2. The learned advocate for the petitioner strenuously contends that the respondent no.1 has taken steps to ensure that respondent nos.2 and 3 monetize their assets in a way which is transparent and leads to the best possible recovery. However, the manner in which the respondent no.2 and 3 are proceeding leads to reasonable suspicion as to their intentions. 3. The impugned advertisement and the invitation document both state that the respondent nos.2 and 3 have already receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent nos.2 and 3 in the target company has been undertaken by them in contravention of the scheme framed by respondent no.1 in its affidavit dated January 25, 2019 and to facilitate some unknown and undisclosed initial bidder . The respondent nos.2 and 3 are applying dual standards. For all prospective bidders, respondent nos.2 and 3 have prescribed eligibility criteria. However, the initial bidder is allowed to participate in the sale process outside the so-called Resolution Framework and appears to have been exempted from the eligibility criteria. 5. According to the learned counsel for the petitioner, the respondent nos.2 and 3 propose to adopt the process akin to a Swiss Challenge Method . This introduces a degree of uncer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dy before NCLAT. 8. We have considered the submissions. It appears that the petitioner has not submitted the Expression of Interest. The petitioner could have submitted Expression of Interest without prejudice to its rights. From the record it appears that earlier also the advertisement and invitation document were published. However, the sale could not materialize. This is for the third time the advertisement and the invitation document are published. The sale of the 42.25% stake of respondent no.2 and 3 in the Company known as IL FS Engineering and Construction Company Limited is published pursuant to the Proposed Resolution Framework for IL FS group filed before the NCLT. Under Clause V proposed process for Asset Level Resolution is s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Challenge Method which cannot be said to be impermissible. 10. As observed above, the petitioner has failed to submit Expression of Interest. If the petitioner has any legitimate objection to the sale, then it is for the NCLT to consider it as provided under step 6 and as observed above, it is for the NCLT to consider whether sale has been conducted in a fair and transparent manner and according to the resolution. 11. In the light of the above, we are not inclined to exercise our writ jurisdiction. It is made clear that we have not considered the contention of the parties on merits as the appropriate authority to finalize the sale would be NCLT. 12. Writ Petition, as such, stands disposed of. No costs. - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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