TaxTMI 
TaxTMI 
2024 (4) TMI 633
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....R-2/Liquidator. Mr. Sanidhya Kumar and Mr. Amrendra Kumar Singh, Advocate for R-3/SBI. ORDER ASHOK BHUSHAN, J. Both these Appeals have been filed against the order dated 13.02.2024 passed by the Learned Adjudicating Authority, (National Company Tribunal, Mumbai Bench, Court - II) in I.A. No.5737/2023 & I.A. No. 261/2024 in C.P. (IB)/03/MB/C-II/2017. 2. The Appellant in Comp. App. (AT) Ins. No. 452 & 453/2024 is a successful bidder in a private sale whereas Appellant in Comp. App. (AT) Ins. No. 651/2024 claimed to be a prospective bidder in the private sale of Corporate Debtor. 3. Facts of the case necessary for deciding the Appeal are: i. Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor/Bhupen Electronic Ltd. commenced by order dated 17.01.2017 of the Adjudicating Authority. The Adjudicating Authority passed an order on 28.07.2017 directing for liquidation of the Corporate Debtor. ii. The State Bank of India and Canara Bank are the Financial Creditors of the Corporate Debtor. iii. The Respondent/Manish Gupta in both the Appeals is the Liquidator of the Corporate Debtor appointed by the Adjudicating Authority. ....
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.... Ins. No. 452 & 453/2023 was filed by Eshan Minerals on 23.02.2024 in which following interim order was passed by this Tribunal on 05.03.2024: "Learned counsel for the Appellant submits that the Adjudicating Authority by the impugned order has rejected the private sale whereas the Liquidator has already filed application for approval of the private sale and at that stage Respondent No.1 filed an application stating that he is interested to take the property and on whose instance the order reserved on the application for approval was de-reserved, application was heard and impugned direction was passed. An Additional Affidavit has been filed by the Appellant where the Appellant has brought on record letter dated 26.02.2024 sent by the Respondent No.1 that he does not want to involve in any litigation matter, hence, he does not want to proceed further in the proposal. Learned counsel for the Appellant submits that in view of the disinclination shown by Respondent No.1, the whole order is erroneous. Learned counsel for the Liquidator also submits that she has also received letter dated 26.02.2024. In view of the aforesaid, we are of the view that auc....
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....n noticed by this Tribunal in its interim order dated 05.03.2024, when Sachani Developers have withdrawn their offer, there is no occasion to proceed with any Auction in pursuance of the order dated 13.02.2024 and the private sale in favour of the Appellant need to be confirmed. It is submitted that State Bank of India/Financial Creditor have also filed an Affidavit that private sale in favour of the Appellant be confirmed. The order dated 13.02.2024, directing for e-Auction be set aside. 11. Learned Counsel for the Liquidator advancing submission on behalf of the Liquidator submits that Liquidator has issued Auction Notice dated 21.02.2024, in pursuance of the order of the Adjudicating Authority dated 13.02.2024 and it has received one EoI from M/s. SD Reality but the Auction could not take place in view of the interim order passed by this Tribunal on 05.03.2024. Liquidator further submits that the Liquidator has also received the letter dated 26.02.2024 from Sachani Developers that they are no more interesting to participate in the sale of the Corporate Debtor. 12. Sh. Amar Dave, Learned Sr. Counsel for the Appellant appearing in Comp. App. (AT) Ins. No. 654/2024 submits th....
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.... "11. While the Liquidator has taken various steps to ensure the private sale is reasonable and transparent, we cannot ignore the fact that the Liquidation Regulation provides for some more checks and balances on the private sale in Schedule 1 of the Liquidation Regulations which includes, inter alia, preparation of a strategy to approach interested buyers for assets to be sold by private sale, liaising with potential buyers or their agents, completion of sale in accordance with the terms of sale, etc. It is observed that the Buyer approached the Liquidator on his own and expressed interest to acquire the rights over the said Property above the reserve price fixed at the last failed auction. Though belated ie., after issue of letter of intent in favour of the Buyer, another person (the Applicant in IA.No.261/2024) has come out with an expression of interest to acquire the rights on the said Property. Thus it is evident that there is interest in the market to acquire the rights in the said Property even though there are other outstanding issues. Furthermore, substantial time has passed after the last public auction in October 2021. 12. It is also pertinent t....
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....Liquidator shall issue fresh notice of conducting sale in two newspapers circulating in the area where the said Property is situate and invite bids above the bid submitted by the buyer by adopting Swiss Challenge method, thereby treating the bid offered by the Buyer as an anchor bid. The interested bidders will have to submit 10% of the bid amount as EMD along with the bid. In the event of receipt of higher bid than the anchor bid of the Buyer, the Buyer shall have the option to match the same. (ii) The Liquidator may finalize other terms relating to MIDC dues, time period for making deposit of consideration, documentation, etc. (iii) The entire sale process to be completed within one month from the date of the order and there is no requirement of obtaining fresh consent/approval of financial creditors for confirming the private sale in favour of the highest bidder subject to satisfaction of other terms and conditions as may be specified by the Liquidator . " 21. We have already noticed that Liquidator has submitted that in pursuance of the Auction Notice dated 21.02.2024, one EMD has already been received and the Appellant-Best One Infraventures Pvt. Ltd. has ....