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Issues: (i) whether the appellant had abandoned the e-auction process or remained a bona fide and serious bidder; (ii) whether the alleged non-availability of the pre-qualification link was attributable to a technical glitch in the auction platform; and (iii) whether the enhanced offer and deposited amount justified setting aside the concluded auction and directing a fresh e-auction with a revised reserve price.
Issue (i): whether the appellant had abandoned the e-auction process or remained a bona fide and serious bidder?
Analysis: The appellant had earlier participated in the sale process, uploaded documents, deposited the EMD and logged into the auction platform on multiple occasions. The communications from the liquidator referred to registration, upload of documents and EMD deposit, but did not clearly highlight the separate pre-qualification step. The appellant also contacted the BAANKNET support team before the auction closed, complaining that the pre-qualification link was unavailable.
Conclusion: The appellant was not treated as having abandoned the process and was found to have acted as a bona fide participant.
Issue (ii): whether the alleged non-availability of the pre-qualification link was attributable to a technical glitch in the auction platform?
Analysis: The tribunal noted that neither the liquidator nor the adjudicating authority had the technical means to conclusively rule out a platform defect. No affidavit or appearance was made by the auction platform operator to negate the complaint. The appellant's contemporaneous complaint and multiple login attempts supported its case, while the absence of a screenshot or log was held insufficient to dislodge the grievance.
Conclusion: The plea of technical difficulty was accepted and the adverse finding against the appellant on this aspect was set aside.
Issue (iii): whether the enhanced offer and deposited amount justified setting aside the concluded auction and directing a fresh e-auction with a revised reserve price?
Analysis: The appellant had offered a substantially higher amount and later deposited Rs. 54 crores. The tribunal distinguished authorities protecting concluded auctions, holding that those decisions did not bar interference where a genuine participant was excluded by process failure and the higher offer could materially advance value maximization. The liquidator's own stand before the High Court also supported a re-auction at the enhanced reserve price.
Conclusion: The concluded auction was set aside and a fresh e-auction was directed with a reserve price of Rs. 54 crores.
Final Conclusion: The appeal succeeded, the impugned order was set aside, and the liquidation sale was ordered to be redone through a fresh competitive process open to eligible bidders, including the appellant, on a revised reserve price.
Ratio Decidendi: A concluded liquidation auction may be interfered with where a bona fide bidder is excluded because of a plausible platform-related failure, and a substantially higher offer already secured supports a fresh auction to further the statutory objective of value maximization.
Value maximization in liquidation auctions can justify a fresh e-auction when a bona fide bidder is excluded by platform failure.
In a liquidation sale context, a bona fide bidder was held not to have abandoned the e-auction where the record showed repeated logins, document upload, EMD deposit, and a contemporaneous complaint that the pre-qualification link was unavailable. The tribunal accepted that a technical glitch on the auction platform could not be ruled out, especially without any rebuttal from the platform operator, and set aside the adverse finding on that issue. It further held that a substantially higher offer and deposited amount justified interference with the concluded auction in aid of value maximization, and directed a fresh e-auction at a revised reserve price.
Exclusion from e-auction on technical glitch - non-availability of the pre-qualification link - bona fide bidder - Fresh auction in liquidation for value maximization - Sanctity of concluded auction and its exceptions. Bona fide participation in e-auction - Technical glitch in auction portal - Pre-qualification on automated platform - HELD THAT: - The Tribunal found that the liquidator's emails of 03.04.2025 and 07.04.2025 emphasized registration on the BAANKNET platform, uploading of documents and redeposit of EMD, but did not specifically highlight a separate pre-qualification step or its deadline. The appellant had registered on the platform, uploaded documents in the document library, deposited the EMD in the e-wallet and made multiple logins before the auction. The contemporaneous communication to the BAANKNET support team before commencement of bidding, and the immediate post-auction email, showed that the appellant was attempting to participate and was complaining that the pre-qualification link was unavailable. In these circumstances, the Tribunal held that the Adjudicating Authority was not justified in inferring abandonment or lack of seriousness. It further held that, in the absence of any technical verification from BAANKNET, neither the liquidator nor the Adjudicating Authority could conclusively rule out a technical bottleneck merely because the system was automated or other bidders had participated successfully. Benefit of doubt therefore had to go to the appellant. [Paras 36, 37, 38, 39, 40] The findings that the appellant had abandoned the auction process, was not a serious bidder, and had raised a false plea of technical difficulty were set aside. Value maximization in liquidation sale - Re-auction on substantially higher offer - Inadequate pricing as ground to interfere with auction - HELD THAT: - The Tribunal held that the rule against reopening concluded auctions is not absolute, and interference remains permissible where the process is affected by grounds going to the core of the sale, including inadequate pricing or material procedural infirmity. The precedents relied on by the respondents were distinguished because they largely concerned higher offers from strangers or non-participants after a valid auction, whereas the present appellant had participated in the process but was excluded for reasons the Tribunal did not accept. The record further showed an enhanced offer before the Adjudicating Authority and thereafter deposit of a substantially higher amount with the liquidator pursuant to proceedings before the Delhi High Court. The Tribunal considered this a concrete and credible offer, not a speculative post-auction expression of interest. It also noticed that the liquidator had stated before the High Court that re-auction with the higher reserve price would serve value maximization. Applying the principle that liquidation sales must secure the best possible value through fair and competitive bidding, the Tribunal concluded that a fresh auction with reserve price fixed at the deposited amount was necessary. [Paras 52, 53, 54, 55, 56] The impugned order was set aside and the liquidator was directed to conduct a fresh e-auction with reserve price of Rs. 54 Cr., open to all eligible bidders including the appellant, with consequential directions regarding treatment of the appellant's deposited amount and completion of liquidation. Final Conclusion: The appeal was allowed. The Tribunal held that the appellant was a bona fide participant who had been wrongly excluded from the auction process, set aside the earlier e-auction and directed a fresh auction with reserve price fixed at the amount already deposited by the appellant so as to secure value maximization in liquidation.