TaxTMI 
TaxTMI 
2019 (10) TMI 279
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....alingam against Mr. Mahalingam Suresh Kumar (Liquidator) of M/s. Nag Yang Shoes Private Limited. 2. The prayer made by the Applicant in the Application is as follows: a) Pass an order directing the 1st Respondent to refund the entire monies deposited by the Applicant amounting to Rs. 1,30,25,000/- (Rupees One Crore Thirty Lakhs and Twenty Five Thousand only) with interest @ 15% per annum; Or in the alternative b) Pass an order directing the 1st Respondent to restrict the forfeiture only to the EMD amount of Rs. 15,00,000/- (Rupees Fifteen Lakhs only) and refund the balance amount of Rs. 1,15,25,000/- (Rupees One Crore Fifteen Lakhs and Twenty Five Thousand only) to the Applicant. 3. The Applicant has partici....
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....uested for 15 days extension. (FIRST EXTENSION) 6. 26-Nov-2018 Subsequently Rs. 42 Lakhs had been received in the next 15 days. (balance receivable - Rs. 1.74 crores (including GST). Again extension was requested by the Applicant for an additional 10 days (SECOND EXTENSION) 7. 27-Nov-2018 Rs. 30 Lakhs received. Extension granted for 10 days (i.e. upto 6th Dec, 2018). Balance receivable -1.44 crores (including GST) 8. 06-Dec-2018 Last date for payment of full sale consideration. No payment received on the due date. 9. 07-Dec-2018 Liquidator had issued a letter of cancellation of proposed sale and forfeited the paid amount as per clause 12 of the Tender terms & conditions. 10. 10-Dec-2018 Subsequen....
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....d highest bidder who had already made payment that was equivalent to the amount offered by the Applicant and had become the successful bidder by making the payments in time. 4. On failure of the Applicant to honour the commitment and keeping in view the objective of the Insolvency & Bankruptcy Code, 2016, i.e., the maximization of the value of assets, the Liquidator has decided to sell the assets to the 2nd bidder, who has made the payment well in time. The amount of Rs. 1,30,25,000/- (Rupees One Crore Thirty Lakhs and Twenty Five Thousand only) deposited by the 1st bidder viz., Applicant was forfeited under Clause 12 of the Sale Notice, which is reproduced as under: - "Type of offer and manner of payment: * The success....
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....case law, which is not relevant and cannot be made applicable to the facts and circumstances of the case on hand. Therefore, the detail of the case law cited need not to be discussed as facts involved in those cases are different from the facts of the case on hand. Therefore, it is necessary to refer to the relevant part of the Tender document, acceptance thereof by the Applicant and intimation given to the Applicant by the Liquidator of his success in e-auction. 7. The Clause 12 of the Tender document has already been extracted under Para No. 4 hereinabove, which clearly provides that "the defaulting bidder shall have no right to claim any amount deposited by him/her and shall have no claim over the property." 8. The terms and condit....
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.... conditions have clearly been mentioned: "Important note: As per e-auction terms, this intimation of your success in e-auction is conditional, and is subject to your payment of the balance dues as per the terms and conditions of the e-auction. In case of any failure in payment of the auction amount in the Liquidation account on or before the scheduled date, this intimation stands withdrawn automatically and the Liquidator reserves right to award the bid to the second highest bidder, subject to his payment. Any non-compliance of terms of this e-auction by your company will attract complete forfeiture of the EMD amounts and further payments received. Once again, we congratulate you for emerging successful in this e-....