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Issues: (i) Whether the reserve price and valuation adopted for the liquidation auction could be assailed after completion of the auction and absence of prior objection. (ii) Whether the reliefs and concessions granted to the successful auction purchaser for running the corporate debtor as a going concern were impermissible because they were not expressly mentioned in the process document.
Issue (i): Whether the reserve price and valuation adopted for the liquidation auction could be assailed after completion of the auction and absence of prior objection.
Analysis: The liquidation sale had been conducted on the basis of valuation obtained during liquidation in accordance with the liquidation regulations, and the reserve price was fixed as an average of the realised values reported by the valuers. The stakeholder had knowledge of the auction process, the reserve price, and the public notices, but raised no objection before the auction concluded. The challenge was therefore belated. The record also showed that the claimant had relinquished security interest and had been paid in accordance with the liquidation waterfall, while the auction process was carried out transparently and without any substantiated irregularity.
Conclusion: The challenge to valuation and reserve price failed and was rejected.
Issue (ii): Whether the reliefs and concessions granted to the successful auction purchaser for running the corporate debtor as a going concern were impermissible because they were not expressly mentioned in the process document.
Analysis: The sale was expressly for the corporate debtor as a going concern, and reliefs and concessions were consequential to enabling the successful bidder to operate the enterprise on a clean slate basis. The omission of an express recital in the process document that such reliefs could be granted did not vitiate the auction or the subsequent adjudicatory order. The concessions were viewed as incidental to a going-concern sale and not as an impermissible deviation from the process document.
Conclusion: The grant of reliefs and concessions was upheld and the objection failed.
Final Conclusion: The appeal was found to be devoid of merit, and the liquidation sale and consequential reliefs to the successful bidder were sustained.
Ratio Decidendi: A belated challenge to valuation and reserve price in a completed liquidation auction will not succeed absent prior objection or substantiated illegality, and reliefs incidental to a going-concern sale may be granted even if not expressly itemised in the process document.
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