TaxTMI 
TaxTMI 
2022 (6) TMI 107
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....d, a liquidation proceeding was initiated and an order passed under Section 33(1) of the IBC. The Liquidator on 31.03.2021issued an Auction Notice. In the Auction Notice date and time of auction was mentioned as 20.04.2021 between 10 AM to 4 PM whereas last date and time of submission of EMD was 15.04.2021 before 4 PM. Regarding inspection of the site, date and time was from 01.04.2021 to 13.04.2021 from 11 AM to 2 PM. The EMD was fixed as Rs.107.58 lakhs. 3. It is the case of the Appellant that after Auction Notice he sent an email on 15.04.2021 at 14.03 (2.03 PM) which was addressed to Liquidator. The Appellant claimed that through the said email he requested the Liquidator for providing Detailed Process Memorandum and also for extension of time of the bid. As per the Appellant case, he was refused his request by the Liquidator. Subsequently the Appellant sent another email on 06.05.2021 offering a sum of Rs.15 crores for auction property. The said mail was replied by the Liquidator that auction process was already complete. The Appellant thereafter filed an IA seeking direction to consider his offer. To the IA, the liquidator also filed reply affidavit. It is further case of ....
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....down situation. 2. They are not prepared to file Bid. 3. They were not having funds. 4. They want IM only for further study. 6 15.04.2021 3.32 PM Email was replied rejecting the request for extension Admitted fact. Thereafter no reply to this email. 7. 20.04.2021 Auction took place 16 Bidders took place10 Bidders were from Maharashtra. Auction was completed at Rs.2.25 crore higher than the Reserve Price This proves that genuine bidders were there and business activities were very much on. 8 22.04.2021 Letter of Intent issued to successful bidder. Copy attached as Annexure A. 9 26.04.2021 To 28.04.2021 EMD refunded to unsuccessful bidder. Bank statement acched as Annexure B. 10. 06.05.2021 16 daus after completion of Bid process Email received from Appellant. With a false statement that we became aware of the Notice on 14.04.2021. After completion of the Auction Process Liquidator has not powers to consider such request. Whereas admitted fact that they visited the site on 07.04.2021. (Page 83 of the Appeal Paper Book). Not ready with the funds even on the date of email. 11 07.05.2021 Email was replied that Auction ....
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.... than the amount settled in favour of the highest bidder. Learned counsel for the Appellant had taken this Court to Annexure 'C' (Page 36) and Annexure 'D"' (Page 37), Annexure 'G' (Page starting from 41) and other documents while referring to statement made in reply by the RP which is Annexure G. It has been argued that the request of the Appellant for providing detailed process memorandum was rejected on untenable grounds. He has specifically referred to paragraph 5 at running page 43 and paragraph 7 at Page 44. It has been highlighted that there was no reason for the Respondent to reject the request of the appellant on the plea that the Appellant was neither Director of the Company nor email which had come from the registered email of the Company. He submits that Liquidator as responsible Officer of the Court has not shared process of memorandum which was not correct. It has been emphatically argued that once before the time for submission of EMD the Appellant had sent an email, the Official Liquidator was duty bound to provide the details to enable him to participate in the bid. The Appellant was ready to offer much more than the highest bidder. Of course, learned counsel for t....
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....a facie on examination of the record and pleading we are satisfied that Appellant has adopted undue steps for abusing process of the Court. In normal course such appeals are required to be rejected with imposing heavy costs. However, at the moment we are refraining to impose such costs. The intention of the Appellant is to defeat the object of auction as is evident from the initial sending of email by the Appellant. As per the auction notice 15.4.2021 before 4 PM was the time fixed for last date for submission of EMD and inspection date was fixed for 1.4.2021 to 13.4.2021. In the reply filed by the Respondent, which has not been rebutted, it has been indicated that the Appellant himself had inspected the site on 07.04.2021. However, no such fact has been disclosed by the Appellant either before the Adjudicating Authority or in the present memo of appeal. The Appellant as per reply visited the site on 07.04.2021 still at the last hour i.e. at 2.03 PM on 15.4.2021 he sent an email primarily for extending the date for bid for 30 more days time and at the sametime he requested to send detailed process memorandum for further study. It is profitable to reproduce the email dated 15.4.2021....