Transparent liquidation sale process cannot be reopened for a belated higher offer after fair inter se negotiations.

A transparent sale process for company assets in liquidation, supported by expert valuation, public notice, and inter se negotiations before a sale committee, should not be reopened merely because a tenderer later offers a higher price. Where all tenderers were given a fair opportunity to improve bids and the best bid emerged through the committee process, a belated enhancement application is improper because it would unsettle the completed sale and turn the court into an auction forum. The late bid was rejected and the highest bid approved.

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Issues: Whether a belated higher offer made after completion of a transparent tender and negotiation process should be entertained and whether the highest bid obtained through the sale committee deserved approval.

Analysis: The assets of the company in liquidation were valued by an expert valuer, wide publicity was given, and multiple tenders were received. A sale committee consisting of secured creditors, the workers' representative and the Official Liquidator conducted negotiations in the presence of all tenderers to secure the best price. The highest bid emerged after inter se negotiations and was substantially above the valuation. The Court held that once every tenderer had been given a fair opportunity to improve bids, it would be improper to reopen the process merely because one tenderer later sought to make an enhanced offer. Allowing such a late bid would unsettle the sale process and convert the court into an auction forum.

Conclusion: The belated application for enhancement of the bid was rejected and the highest bid was approved.

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