Going-concern liquidation sale reliefs may be sought, but only limited directions aligned with auction terms are maintainable.

In a going-concern liquidation sale, a successful bidder may seek directions, clarifications and limited reliefs from the Adjudicating Authority where they are necessary to operationalise the corporate debtor and remove implementation impediments. Those requests must, however, remain commensurate with the e-auction process document and the liquidation framework, including the treatment of liabilities and claims. A broadly framed application was therefore found excessive, and only prayers consistent with the sale terms could be considered. The order was modified to preserve the bidder's right to seek targeted implementation reliefs through a fresh application confined to the auction framework.

---

---

Issues: Whether a successful bidder in a going-concern sale during liquidation can seek reliefs, concessions and directions from the Adjudicating Authority that are necessary for operationalising the corporate debtor, and whether such prayers should be limited to what is commensurate with the e-auction process document.

Analysis: The sale was conducted as a going concern under the liquidation framework, and the process document contemplated transfer of the corporate debtor with treatment of liabilities and claims in accordance with the liquidation scheme. In that setting, the successful bidder could approach the Adjudicating Authority under the insolvency jurisdiction for directions, clarifications and reliefs necessary to remove impediments to implementation of the sale. At the same time, the breadth of the original application was found to be too general and wide, and only those requests that were consistent with the terms of the process document and necessary for operationalisation could properly be considered.

Conclusion: The bidder was entitled to seek appropriate, limited reliefs, concessions and directions before the Adjudicating Authority, and the matter was to be considered on the basis of a fresh application confined to prayers commensurate with the auction terms.

Final Conclusion: The order below was modified to preserve the bidder's right to seek targeted implementation reliefs, while restricting consideration to prayers aligned with the going-concern sale framework.

---