Tribunal Orders Disclosure of Anchor Bid Selection Process, Quashes Document, Initiates New Auction

The Tribunal directed the disclosure of the selection process of the Anchor Bidder or adoption of the Anchor Bid as the reserve price. It granted the prayer to quash the Process Document dated 27.03.2021 and prevent further steps based on it. The Liquidator was ordered to consider an offer for the Consolidated Assets and revoke the Second Swiss Challenge Process. Participation in the e-auction Process was allowed, and a new auction was initiated to expedite the sale process. The Tribunal mandated the completion of the entire sale process within three weeks, ensuring transparency and fair competition among bidders.

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Issues:
1. Disclosure of the selection process of the Anchor Bidder
2. Quashing of the Process Document dated 27.03.2021
3. Consideration of offer for the Consolidated Assets and revocation of the Second Swiss Challenge Process
4. Participation in the e-auction Process of the Corporate Debtor
5. Delay in the sale process and initiation of a new auction for Metals & Scrap and Land and Buildings
6. Completion of the entire sale process within three weeks
7. Participation of all parties in the bidding process
8. Fixing appropriate conditions for prospective bidders

Issue 1: Disclosure of the selection process of the Anchor Bidder
In I.A. No. 273 of 2021, HR Commercial Pvt. Ltd. sought disclosure of the selection process of the Anchor Bidder or to discard the Swiss Challenge Process. The Tribunal directed the Respondent to reveal the process or adopt the Anchor Bid as the reserve price and allow inter se bidding among parties under the Liquidator or Tribunal's supervision.

Issue 2: Quashing of the Process Document
I.A. No. 379 of 2021 by M/s. Kanter Steel India Pvt. Ltd. aimed to quash the Process Document dated 27.03.2021 and restrain the Respondent from proceeding with it. The Tribunal granted the prayer to set aside the Process Document and prevent any further steps based on it.

Issue 3: Consideration of offer for the Consolidated Assets
M/s. Welspun Steel Resources Pvt. Ltd. filed I.A. No. 445 of 2021 to direct the Liquidator to consider its offer for the Consolidated Assets and to cancel the Second Swiss Challenge Process. The Tribunal ordered the Liquidator to accept the offer and revoke the Second Swiss Challenge Process.

Issue 4: Participation in the e-auction Process
In I.A. No. 527 of 2021, M/s. Chinar Steel Segment Centre Pvt. Ltd. requested participation in the e-auction Process of the Corporate Debtor. The Tribunal directed the Respondent/Liquidator to allow the Applicant to take part in the e-auction Process.

Issue 5: Delay in the sale process and initiation of a new auction
The sale process faced a significant delay of almost three years. The Liquidator proposed a new auction to sell Metals & Scrap and Land and Buildings at Dahej together, aiming to save time and maximize value for stakeholders. The Tribunal directed the Liquidator to complete the sale process within three weeks in consultation with the stakeholder committee.

Issue 6: Completion of the entire sale process within three weeks
Acknowledging the prolonged delay, the Tribunal mandated the Liquidator to finalize the entire sale process within three weeks from the date of the order.

Issue 7: Participation of all parties in the bidding process
All parties involved were permitted to participate in the bidding process, ensuring transparency and fair competition among bidders.

Issue 8: Fixing appropriate conditions for prospective bidders
The Tribunal emphasized that the Liquidator could impose suitable conditions on prospective bidders to verify their bona fide intentions, ensuring a legitimate and competitive bidding environment.

In conclusion, the Tribunal disposed of I.A. No. 273 of 2021, I.A. No. 379 of 2021, I.A. No. 445 of 2021, and I.A. No. 527 of 2021. The matter was scheduled for further consideration of I.A. No. 332 of 2021 and I.A. No. 371 of 2021 on 31st August 2021.

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