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TMI Blog2021 (12) TMI 1381X X X X Extracts X X X X X X X X Extracts X X X X ..... quences and wants the luxury of being heard by this Tribunal at length. The application therefore requires to be rejected with proportionate cost for pursuing such a claim and making such untenable plea before this Tribunal which is likely to stall the auction proceedings to be held at 03:00 P.M. today. Application dismissed. The pre-bid qualification is the eligibility criteria of the bidders, as specified by the Stakeholders Consultation Committee, which is binding on the Liquidator. The faint argument of Mr. Rakesh Kumar, Ld. Counsel for the applicant, that pre-bid qualification will not bind the bidders, is totally misconceived because in all these cases the eligibility criteria of bidders is an essential component for bidding process, otherwise, it will lead to all and sundry participating in the bid process, which will only jeopardise the Liquidator's endeavour to maximise the value of the asset of the corporate debtor in liquidation - - (IB)-1644(PB)/2018 - - - Dated:- 14-12-2021 - R. Sudhakar, J. (President) and Hemant Kumar Sarangi, Member (T) For the Appellant: Rakesh Kumar, Preeti Kashyap and Ankit Sharma, Advocates For the Respondent: S.K. Bhatt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urse of argument, it is confirmed by the Ld. Counsel for the applicant, as well as Liquidator, that on 09.12.2021 the party/applicant approached the Liquidator who informed him about the 08.12.2021 email, giving reasons for not accepting the bid therein. Nevertheless, to make matter straight, the Liquidator sent another email at 11:36 A.M. on 09.12.2021 which reads as follows:- 9. It is pertinent to note that the time was given upto 08:00 P.M. on 09.12.2021, to submit the documents properly. Mr. Siddharth Sharma, Director of SGA Fashion Pvt. Ltd. who is the present applicant, sent mail dated 09.12.2021 at 07:46 P.M. to the Liquidator acknowledging the receipt of the email dated 09.12.2021, along with the detailed reply reiterating nature of bid and the EMD submitted. He also stated that the response to the email dated 09.12.2021 is given on the premise that the Income Tax return and financial statements established that the applicant- M/s. SGA Fashion Pvt. Ltd. has a turnover of Rs. 20 Cr. and net worth Rs. 03 Cr. and therefore, he is eligible in both the bids. 10. However, sensing that his bid will not be accepted for both the items he had sent another mail on 10.12.202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra 38 which reads as under: 38. In a few liquidations, it has been noticed that the liquidators have imposed unreasonable pre-bid qualification conditions such as stipulation of exorbitant Earnest Money Deposit (EMD) and in some cases even stipulated the nonrefundable participation fee, for participation in the auction. Such conditions adversely impact the extent of participation in the auction(s), which reflects in the realization of the assets. To ensure higher realization in the auction, it is critical that the liquidator does not impose conditions which inhibit participation in the auction. He therefore pleaded that he should be permitted to participate in both the bids. 14. Mr. S.K. Bhatt, Liquidator appeared and stated that the eligibility criteria is fixed by the Stakeholders Consultation Committee (SCC) and the proceedings are being recorded by way of minutes of the meeting. It is on that basis that the eligibility criteria i.e. Clause 1.15 has been incorporated. He stated that the purpose behind specification of Rs. 20 Cr. turnover and Net worth Rs. 03 Cr., in respect of each property, is only to ensure that the bidder has the capacity to participate in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p firm, HUF, LLP or any company, which is three years old with Turnover of Rs. 20.00 Cr. and Net Worth of Rs. 03.00 Cr. for each set of Land Building. It clearly states that no such condition will apply to plant and machinery and other moveable assets. This eligibility criteria according to the Liquidator has been fixed on the basis of the minutes of the meeting held by the Stakeholders Consultation Committee (SCC), which is also based on in the documents relied by the applicant namely Discussion Paper at para No. 2:- ...He endeavours to sell the assets of the liquidation estate through public auction, in consultation with the Stakeholders' Consultation Committee (SCC) and wherever required, avails assistance of professionals in the discharge of his duties, obligations and functions.... (explain supplied) Therefore, the applicant has no justification for relying upon the para 38 of the Discussion Paper to say that the claim of the applicant should be accepted in totality which is misconceived because para 38 of the Discussion Paper provides for Earnest Money Deposit and not in the manner pleaded by the applicant counsel. (ii) In this rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iteria in respect of each one of the two properties. That being the case, no special consideration or leverage can be granted to the applicant. (iv) The applicant knowing fully well the eligibility criteria at Clause 1.15, which specifies that the Turn Over of Rs. 20 Cr. and Net worth Rs. 03.00 Cr. is applicable for each set of land and building, which is stated in very clear terms, cannot now raise the issue before this Tribunal on the plea that the conditions are not applicable, without challenging the said condition in an appropriate forum. 18. Be that as it may, the application was taken up at 10:45 A.M. and has continue upto 12:45 P.M. on the issue raise of the applicant counsel and much time has been consumed by this applicant on this exercise in futility, knowing fully well that he has absolutely no justification for making such a claim. 19. Hon'ble Appellate Tribunal and higher forums have been repeatedly requesting this Tribunal to take up cases on priority basis, where several home buyers, individual companies and IBC proceedings require time of the Tribunal but this applicant chooses to file an application of this nature, knowing the consequences and wan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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