Interest mandatory on delayed auction balance; Schedule I Rule 12 requires 12% after 30 days, extension limited

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....NCLAT partly allowed the appeal, setting aside the Adjudicating Authority's waiver of interest on the balance sale consideration. It held that Schedule I Rule 12 of the Liquidation Process Regulations is mandatory, requiring payment of the balance sale consideration within 30 days, failing which 12% interest is payable, with an outer limit of 90 days (extendable only by the AA, not the Liquidator). The Successful Auction Purchaser, having delayed payment beyond 30 days from the Sale Confirmation Advice dated 29.12.2022, was held liable to pay 12% interest on the unpaid balance from expiry of 30 days until 15.06.2023, when extension was granted, to be paid within two weeks.....