Liquidation period extension allowed after failed e-auctions and pandemic disruption, with directions to follow model timelines.

Liquidation period may be continued where completion within the prescribed two-year period is not possible and the liquidator supports the request with a report explaining the delay and further time required. The Tribunal noted repeated failure of e-auctions, absence of bidders, and disruption caused by the Covid-19 pandemic and lockdown restrictions, and found it just and proper to grant additional time. It also directed compliance with the prescribed model timelines for completion of liquidation. The liquidation period was accordingly extended for one year from the date of the order.

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Issues: Whether the liquidation period could be extended under the liquidation regulations in view of unsuccessful sale efforts and disruption caused by the Covid-19 pandemic.

Analysis: The liquidation had already continued beyond the prescribed period, and the liquidator placed material before the Tribunal showing repeated failure of e-auctions, absence of bidders, and impediments caused by the pandemic and lockdown restrictions. Regulation 44(2) permits an application to continue liquidation where completion within two years has not been possible, supported by a report explaining the delay and the further time required. On the facts, the Tribunal found it just and proper to grant further time and directed adherence to the prescribed model timelines for completion of liquidation.

Conclusion: The request for continuation of the liquidation period was allowed, and the liquidation period was extended for one year from the date of the order.

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