Regulation 33 - Mode of sale

Private sale restrictions limit disposal of corporate debtor assets to narrow exceptions and bar sales to related parties without authority.

Assets must ordinarily be sold by auction under Schedule I; private sale is permitted only after prior consultation with the regulation 31A consultation committee and in Schedule I manner where the asset is perishable, likely to deteriorate significantly if unsold immediately, or with prior permission of the Adjudicating Authority. Private sale without Adjudicating Authority permission is prohibited to related parties, the liquidator's related parties, or appointed professionals. The liquidator must not proceed with a sale on reasonable suspicion of collusion and must report such suspicion to the Adjudicating Authority.