The National Company Law Appellate Tribunal, Chennai Bench, ...

Private sale timeline refusal upheld by NCLAT. Indian Contract Act inapplicable. Doctrine of approbation and reprobation applied. Appeal dismissed.

Case Laws     Insolvency and Bankruptcy

June 5, 2024

The National Company Law Appellate Tribunal, Chennai Bench, addressed the issue of refusal to revise the timeline for balance payments in a private sale, invoking the doctrine of approbation and reprobation. The question arose whether the Indian Contract Act, 1872 or the Code u/r Liquidation Regulation, 2016 applied to private sales. The Tribunal found that lenders did not agree to the extension proposed by the Appellant, who later accepted the extended timeline but challenged the condition of forfeiture. The Tribunal held that the Appellant's actions invoked the doctrine of approbation and reprobation, as they accepted benefits under the order while attempting to challenge it. Consequently, the appeal was dismissed.

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