NCLT Kolkata: Successful bidders approved for Rs. 70 Crores bid, must pay first installment within 3 days

The National Company Law Tribunal, Kolkata, approved the bid of successful bidders for a sum of Rs. 70 Crores for the Corporate Debtor and allowed them to commence work before paying the first installment to make the Corporate Debtor operational. The Tribunal directed the successful bidders to pay the first installment within three days and commence work under the Liquidator's supervision to operationalize the Corporate Debtor, while the possession of assets remained with the Liquidator.

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Issues: Clarification on allowing successful bidders to start work before paying first installment.

In this case, the National Company Law Tribunal, Kolkata, approved the bid of the successful bidders for a sum of Rs. 70 Crores for the Corporate Debtor and directed the Liquidator to sell the assets to them. The successful bidders sought permission to commence work before paying the first installment to make the Corporate Debtor operational. The State Bank of India objected, citing non-payment according to the schedule. The Liquidator agreed to allow work upon payment of the first installment within three days. The Tribunal considered the bid, noting it exceeded the liquidation value and the need to make the Corporate Debtor operational for employment opportunities. The Tribunal directed the successful bidders to pay the first installment within three days and commence work under the Liquidator's supervision to operationalize the Corporate Debtor. The possession of assets, however, remained with the Liquidator as per the previous order. The Tribunal disposed of the case with the clarification provided.

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