Liquidation asset sale rules limit private sale, bar related-party transfers, and require action on suspected collusion. Liquidation assets are ordinarily sold through auction in the manner specified in Schedule I. Private sale is allowed only with prior approval of the committee having sixty-six per cent voting share, where the asset is perishable, likely to deteriorate significantly if not sold immediately, or where prior permission of the Adjudicating Authority has been obtained. Private sale is barred to related parties of the corporate debtor, the liquidator's related party, and any professional appointed by the liquidator. The liquidator must not proceed with a sale where collusion is suspected and must report the matter to the Adjudicating Authority.
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Provisions expressly mentioned in the judgment/order text.
Liquidation asset sale rules limit private sale, bar related-party transfers, and require action on suspected collusion.
Liquidation assets are ordinarily sold through auction in the manner specified in Schedule I. Private sale is allowed only with prior approval of the committee having sixty-six per cent voting share, where the asset is perishable, likely to deteriorate significantly if not sold immediately, or where prior permission of the Adjudicating Authority has been obtained. Private sale is barred to related parties of the corporate debtor, the liquidator's related party, and any professional appointed by the liquidator. The liquidator must not proceed with a sale where collusion is suspected and must report the matter to the Adjudicating Authority.
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