Liquidation value maximisation guided the court's decision to leave re-auction issues and contempt objections for appellate determination.

In liquidation proceedings, the Court recorded the liquidator's stated intention to seek re-auction before the appellate tribunal, noting that the process document gave the liquidator discretion to reject bids and restart the auction where value maximisation so required. In light of subsequent developments, including the enhanced offer and pending proceedings before the NCLT and NCLAT, the Court declined to pursue the contempt allegations further. It left the proposed re-auction and all related objections, including any challenge to the earlier e-auction, for determination by the competent appellate forum.

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Issues: Whether the alleged conduct of the liquidator warranted further adjudication of the contempt allegations, and whether the liquidation process could be carried forward by seeking re-auction before the appellate tribunal.

Analysis: The petition arose from allegations that the liquidator had acted contrary to the undertaking recorded earlier before the Court. The Court noted the sequence of events in the liquidation and auction process, including the subsequent developments before the NCLT and NCLAT, the petitioner's enhanced offer, and the liquidator's statement that a request would be made before the appellate tribunal for setting aside the earlier e-auction and conducting a re-auction with a higher reserve price. The Court also noted the liquidator's contractual and regulatory discretion under the process document to reject bids and restart the auction process, and observed that the larger objective was maximisation of value of the liquidation estate.

Conclusion: The Court declined to pursue the contempt allegations further, recorded the liquidator's statement to seek re-auction before the NCLAT, and left all consequential issues, including objections, to be decided by the appellate tribunal.

Final Conclusion: The petition was brought to an end by recording the liquidator's course-correction and by leaving the proposed re-auction and related objections for determination in the pending appellate proceedings.

Ratio Decidendi: In liquidation matters, where subsequent developments and the liquidator's stated proposal better serve maximisation of value, the Court may record the statement and leave consequential auction issues to the competent appellate forum rather than proceed with a separate contempt adjudication.

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