TaxTMI 
TaxTMI 
2020 (1) TMI 235
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....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 - 3, Bawal, Haryana with reserve price of Rs. 2.97 crore ("Ass....
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.... 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) g. Announcement of successful bidder - 16.04.2019 h. Signing the Letter of Intent - 16.04.2019 to 22.04.2019 i. Return of EMD for unsuccessful bidders - 16.04.2019 to 22.04.2019 j. Payment of balance consi....
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.... 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 and willing to participate in a fresh auction of Asset 1, if the Tribunal cancels the auction, dated 15.04.2019 and directs the Liquidator to conduct a fresh auction of Asset 1 in a transparent manner. 2. The Liquidator has filed the following reply to the application: i. In the auction, dated 2....
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....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 assuming the Applicant wanted to participate in the process but was aggrieved by the shorter timelines, the Applicant could have written to the Liquidator for extension of time as the Liquidator is empowered to amend the timelines. vi. The time for making full payment was increased in the interest of the prospective bidders to ensure ma....