TaxTMI 
TaxTMI 
TaxTMI 
2021 (6) TMI 72
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....owards Maintenance Security Deposit in respect of the property which was e-Auctioned by the Liquidator. 2. While dismissing the Application, preferred by the Appellant herein, the Learned Adjudicating Authority has observed as follows:- 10. Thus, even in the Process Memorandum itself, the Liquidator has mentioned that the successful bidder will have to pay a sum of Rs. 6 Lakhs towards interest bearing maintenance security Deposit with DLF and it is understood that the said amount has to be paid over and above bid price. Hence, the attempt of the Applicant to say that the bid amount is inclusive of the Maintenance Security Deposit proves to be futile and not sustainable. 11. Further, when the terms and conditions of the bid have clearly postulated that the successful bidder has to pay the Maintenance Security Deposit, the stance of the Applicant that it will be paid only after getting clarification from this Tribunal is strange on the part of the Applicant. Hence, the Applicant is directed to pay the said sum of Rs. 6 Lakhs as Maintenance Security Deposit with the Liquidator over and above the successful bid price amount of Rs. 1.30 Lakhs. 12. During the course of arguments....
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....d through a Private Sale to the favored purchaser. 4. Learned Counsel for the Appellant strenuously argued that the Liquidator issued a Process Memorandum on 24.03.2020, for which, the Appellant had sought clarification on the terms and conditions of the said e- Auction over 'MSD' charges vide an email dated 10.04.2020 as it was the 5th Auction and all the previous Auctions had failed. The Learned Counsel drew our attention to the email dated 10.04.2020 (Annexure P-25) which is reproduced as hereunder:- (Emphasis Supplied) 5. Learned Counsel further drew our attention to the e-mails dated 01.10.2019, 03.03.2020 annexed as Annexure B and C to the Rejoinder, wherein the Liquidator had sought for details of the prospective buyer and details of the price quoted to them to improve their negotiation accordingly and thereafter addressed an e-mail stating that the Liquidator shall sell the property by way of a Private Sale to maximize the value of property in the interest of all stakeholders. 6. Learned Counsel vehemently contended that the Appellant participated in the e-Auction and found that the online Auction process provided only for entering the bid amount and no separate....
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....at the terms of Auction was not clear with regard to 'MSD' of Rs. 6 Lakhs cannot be justified; that the Appellant mailed to the Liquidator on 13.08.2020 a copy of two DDs for Rs. 50 Lakhs and Rs. 70 Lakhs respectively but as the DDs were not handed over to the Liquidator, the remittance of the said amount is still pending and hence attracts interest at 12% p.a. from 19.07.2020, which is the 90th day form the date of the issuance of LoI. 8. The Learned Counsel for the Respondent drew our attention to the email correspondence exchanged between the Appellant and the Liquidator annexed to the Reply filed before us pertaining to the period between 18.07.2020 and 10.09.2020, the sum and substance of which pertains to the reminders issued by the Liquidator to the Appellant with respect to payment of balance sale consideration of Rs. 120 Lakhs to be paid within the time period specified, failing which the amount shall attract interest at 12% p.a. and if the amount is not paid by 12.08.2020, the EMD amount of Rs. 10 Lakhs would stand forfeited. The correspondence also evidences that there is some dispute between the Appellant and the Respondent and the conduct of the Liquidator has been ra....
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....ull amount, the sale shall stand completed and the Liquidator shall issue a Certificate of Sale or Sale Deed to transfer the said Property. 8. The assets of the Company are sold on "As is where is basis", "As is what is basis", "Whatever there is basis" and "No recourse" basis and the sale does not entail transfer of any title except the title which the Company had on its assets as on date of transfer. The Liquidator does not take or assume any responsibility for any shortfall or defect or shortcoming in the movable/immovable assets of the Company. 9. Notwithstanding any as above, Liquidator shall revoke the Letter of intent, without being liable in any manner whatsoever to the recipient of this LOI (you), if the Liquidator, at his discretion, determines that the recipient of this LOI has (you have), directly or indirectly or through an agent, engaged in corrupt practice, fraudulent practice, coercive practice, undesirable practice or restrictive practice in the auction Process or has, undertaken any action in respect of such process which results in the breach of any Applicable Law including the Prevention of Corruption Act, 1988. 10. Any dispute arising out of or in rela....