Tribunal grants relief in property auction dispute under IBC rules

The Tribunal allowed the urgent hearing of Application IA/637/2020 under NCLT Rules 2016. Relief was sought under Section 60(5) of IBC, 2016 regarding a property auction. The dispute over an additional Maintenance Security Deposit was resolved, with the Applicant directed to pay the required amount. The Applicant was also instructed to pay the remaining bid amount and settle tax arrears within a specified timeline. Upon full payment, the Liquidator was mandated to execute the sale deed, hand over property possession, and settle tax arrears within specified timelines.

---

---

Issues:
1. Urgent hearing of Application IA/637/2020 under Rule 11 r/w Rule 13 of NCLT Rules 2016.
2. Relief sought under Section 60(5) of IBC, 2016 regarding property auction.
3. Dispute over additional payment of Maintenance Security Deposit by successful bidder.
4. Pending payment of bid amount and resolution of tax arrears.

Analysis:
1. The Applicant filed IA/638/2020 seeking urgent hearing of IA/637/2020 under NCLT Rules 2016. The Tribunal allowed IA/638/2020 due to the urgency expressed by the Applicant.

2. IA/637/2020 sought relief under Section 60(5) of IBC, 2016 related to the property auction. The Applicant requested to restrain the Liquidator from creating third party interests, asserting successful bid status, seeking possession of property, and monitoring ongoing proceedings.

3. The dispute arose over the Liquidator demanding an additional sum of &8377; 6 Lakhs as Maintenance Security Deposit from the Applicant, beyond the bid amount of &8377; 130 Lakhs. The Tribunal analyzed the Process Memorandum terms, confirming the requirement of the additional deposit, and directed the Applicant to pay the said amount to the Liquidator.

4. Regarding pending payments, the Applicant had remitted &8377; 10 Lakhs as EMD and was directed to pay the remaining &8377; 120 Lakhs within seven days. Additionally, the Applicant was instructed to pay the &8377; 6 Lakhs Maintenance Security Deposit within the same period. Upon full payment, the Liquidator was mandated to execute the sale deed, hand over property possession, and settle tax arrears within specified timelines.

This comprehensive analysis highlights the legal proceedings, the relief sought, the dispute resolution over additional payments, and the directives issued by the Tribunal regarding pending payments and property possession.

---