2024 (6) TMI 54

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....ry, Ms. Ashly Cherian and Ms. Swet Shikha, Advocates for R-4. Mr. Aman Raj Gandhi, Mr. Parthasarathy Bose and Ms. Panchi Agarwal, Advocates for R-5. JUDGMENT 1. The Petitioner has approached this Court seeking a direction to the Respondent No. 2, i.e. the Insolvency and Bankruptcy Board of India (hereinafter referred to as 'the IBBI') to take appropriate steps against the Liquidator - Mr. Sundaresh Bhat (Respondent No. 4 herein), who has been suspended by the Disciplinary Committee of the IBBI vide Order dated 28.09.2022, and to come up with appropriate guidelines and due process for dealing with the actions of the Insolvency professionals who are suspended by the Disciplinary Committee of the IBBI. 2. The facts, in brief, leading ....

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.... allowed the Respondent No. 4 to proceed with the private sale of the assets of the Corporate Debtor by way of Swiss Challenge Process. The Swiss Challenge Method is a form of public procurement/sale by way of a bidding process wherein a bidder makes a bid to an auctioneer. Once the bid is approved, the auctioneer then seeks counter proposals against the original bid, wherein the original bidder is often granted the right of first refusal. If the original bidder matches the offer to the challenging proposal, the bid is awarded to him, else it is awarded to the challenging bidder. In this method there is no right vested with the bidders beyond the express terms as listed in the document, as the liquidator may elect to go for a private sale i....

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.... the consolidated assets of the Corporate Debtor. h. Respondent No. 4 apprised the Stakeholders and the NCLT about the bid received from the Respondent No. 5 for the Consolidated Assets of Corporate Debtor. The NCLT Vide Order dated 16.08.2021 allowed the Respondent No. 4 to cancel the Second Swiss Challenge Process. i. Petitioner herein filed an appeal, being CA (AT)(INS) 690/2021, before the NCLAT challenging the Order dated 16.08.2021, passed by the NCLT. The NCLAT vide Order dated 02.09.2021 stayed the operation of the Order dated 16.08.2021. j. Respondent No. 5 filed an appeal being Civil Appeal No. 5855/2021 before the Apex Court challenging the Order dated 02.09.2021, passed by the NCLAT. The Apex Court dis....