TaxTMI 
TaxTMI 
2020 (1) TMI 235
X X X X Extracts X X X X
X X X X Extracts X X X X
.... objecting to the public auction of the assets of the Corporate Debtor, SPM Auto Pvt. Ltd. (In Liquidation) ("the CD") carried out by the liquidator, Mr. Vijender Sharma, on 15.04.2019, in the liquidation proceedings of the CD. The facts leading up to the filing of this application, as stated in the application, are as follows: i. The Liquidator vide e-auction process information document, dated 15.02.2019, invited bids for auction of the following assets of the CD under the provisions of the Code: a. Land and building at Plot No. B - 169 & 170, RIICO Industrial Area, Phase - II, Delhi Jaipur Highway, Behror, Rajasthan with reserve price of Rs. 7.24 crore ("Asset 1") b. Land and building at Plot No. - 25, Sector -....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... not be auctioned. The liquidator again vide e-auction process information document, dated 10.04.2019, invited bids for auction of Asset 1, where the reserve price of Asset 1 was reduced from Rs. 7.24 crore to Rs. 6.15 crore. The following time table was specified vide e-auction document, dated 10.04.2019: a. Public announcement of auction and opening of auction portal- 10.04.2019 b. Submission of bid forms and declaration forms - 10.04.2019 to 12.04.2019 c. KYC declaration and due diligence - 10.04.2019 to 12.04.2019 d. Site visits and discussion meeting - 13.04.2019 to 14.04.2019 e. Bid and EMD submissions - 10.04.2019 to 12.04.2019 f. E-auction- 15.04.2019 (11.00 am to 01.00 pm) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....liberately reduced the time for auction process from twelve days during the February auction to six days during the April auction. g. The Liquidator deliberately increased the time period for making full payment from fifteen days during the February auction to ninety days during the April auction, in violation of clause 12 of Schedule I of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 ("Liquidation Regulations"). h. The Liquidator did not publicly advertise the auction held on 15.04.2019, in violation of the Liquidation Regulations and provisions of the Code. The Applicant was a serious bidder but could not participate in the auction as it was not publicized. The Applicant was till ready ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....iv. The area of the asset is disclosed in the e-auction document, dated 10.04.2019, which has also been annexed by the Applicant in its application. v. The Liquidator has the discretion to fix the timeline to be followed during the auction. Therefore, merely because a certain number of days were given in the previous bidding process, it does not become mandatory to fix the same time frame for subsequent processes. Further, since the previous auction was out in the public domain since February, 2019 and the same had failed, the Liquidator considered it appropriate to fix shorter timelines for the subsequent e-auction initiated in April 2019, as the process was already delayed because of the failure of the previous auction. Even assu....