TaxTMI 
TaxTMI 
2026 (2) TMI 612
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....ks to participate in the process of sale of M/s Moser Baer Solar Ltd. (hereinafter referred to as 'MBSL') as a going concern under the provisions of the Insolvency and Bankruptcy Code, 2016. 2. It is submitted that the petitioner was one of the shortlisted participant in the process of sale of MBSL as a going concern, but the right of participation has been virtually taken away from the petitioner on account of the fact that the petitioner did not receive any link or instruction/notification for participating in the pre-qualification proceedings. 3. It is further submitted that the petitioner had fulfilled all mandatory requirements of registering as a buyer, including deposit of Earnest Money Deposit (EMD) and uploading all relevant documents. However, it is contended that it was only in the absence of any specific instructions/notifications and/or a link to participate in the pre- qualification proceedings that the petitioner could not fulfil the alleged requirements and has been, therefore, virtually rendered disqualified on erroneous ground. 4. It is pointed out that the petitioner had e-filed an application before the NCLT raising the aforesa....
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.... A: Steps in the process for sale through E-auction, I Publication of notice for sale through E-auction, II. Submission of eligibility document(s) by Prospective Bidder(s); III. Commencement of access of the assets under auction by Prospective Bidder(s) for their inspection and due diligence; IV. Submission of Earnest Money Deposit by Prospective Bidder(s); V. Participation of Bidders in the E-Auction process on the Auction Date; VI. Highest Bidder to be invited to provide balance sale consideration within ninety days; VII. Liquida tor to conduct due diligence and verify the eligibility of the Highest Bidder; VIII. Liquidator to present the auction results, details of Highest Bidder and the due diligence conducted on it, to the Consultative Committee of Stakeholders (consisting of financial creditors of MBSL); IX. Liquidator to declare the Highest Bidder as the Successful Bidder or reject such bid, after consultation with the Consultative Committee of Stakeholders; X. In case the Highest Bidder is found ineligible, the Liquidator to declare the next Highest Bidder as the Successful Bidde....
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....ue diligence conducted on it to the Consultative Committee of Stakeholders. The Committee was informed that the liquidator shall declare the highest bidder as the successful bidder or reject such bid, after consultation with the Consultative Committee of Stakeholders, in accordance with the advice received from the Committee. The Committee is requested to advise the Liquidator on declaring the highest bidder at the E-auction held on April 08, 2025, i.e. the Consortium of Mr. Girish Jain and Chemester Food Industry Private Limited as the Successful Bidder or to reject the Bid by voting on the following resolution: "Resolution: To consider and if found fit, to pass with or without modification the following Resolution: "The Consultative Committee of Stakeholders of corporate debtor Moser Baer Solar Limited in liquidation, hereby resolves to advise the Liquidator to declare 'Consortium of Mr. Girish Jain and Chemester Food Industry Private Limited'; the highest bidder at e-auction held on April 08, 2025, for sale of corporate debtor Moser Baer Solar Limited in liquidation as a 'Going Concern', on 'as is where is', 'as is ....
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....ior Counsel for the petitioner, inter-alia, submits, on instructions, that the petitioner is willing to offer a sum of Rs.54 crores in respect of the very same assets which have been sought to be e-auctioned by the respondent/ liquidator for a sum of Rs.28.27 crores. 2. Learned counsel for the Liquidator states, on instructions from the liquidator (who is present in Court), that in the event of the petitioner furnishing a bank draft for the aforesaid amount, the liquidator shall request the NCLAT (in the pending proceedings), to set aside the e- auction already conducted, and seek permission for conduct of re- auction of the concerned assets with a reserve price of Rs.54 crores. The said statement is taken on record. 3. This Court approves of the aforesaid course inasmuch as the same will maximise the value of the 'liquidation estate'. 4. Learned counsel for the petitioner submits that a bank draft for a sum of Rs.54 crores, drawn in favour of 'Moser Baer Solar Limited-in liquidation' shall be furnished on the next date of hearing. 5. List on 29.01.2026 in the category of 'supplementary matters'. 6. Copy of this o....
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....with the aim of maximizing the value received for the Corporate Debtor/ the assets of the Corporate Debtor, through the Bid Process, without any requirement to provide any reasoning or justification to any Bidder(s). 4.2 ... (c) annul the Bid Process and reject any/all Bids for any reason, at any point of time, including if considered unsatisfactory or commercially unacceptable or below Reserve Price as determined by the Liquidator, in its sole discretion, without any obligation to provide reasons or justification, and if deemed fit move to other methods of liquidation as per Regulation 32(a) to (f) of the Code. (d) restart the Bid Process, and invite fresh bids either on the Auction Date itself or any subsequent date with prior intimation of the same. The Liquidator reserves the right to conduct subsequent rounds of the E-Auction sale with reduction in Reserve Price, as per the Code and Liquidation Regulations." 17. The aforesaid extracts of the 'Process Information Document' governing the auction process recognizes the rights and powers of the Liquidator to annul the auction process and initiate a re-auction, inter-alia to maximize the value received ....
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....ication given the facts and circumstances. The order dated 21.01.2026 merely reflects what has transpired in the present proceedings. It shall be for the NCLAT to consider the matter further and pass appropriate orders. Any objections that may be raised by the applicant in CM. APPL. 5867/2026 (or by any other party) shall necessarily be considered by the NCLAT. 21. During the course of hearing on 02.02.2026, the aforementioned bank draft of Rs. 54,00,00,000/- (Rupees Fifty Four Crores) was handed over to the liquidator. The utilisation/encashment of the same shall be subject to the orders of the NCLAT. While moving an application seeking conduct of a re- auction, the liquidator shall apprise the NCLAT of the aforesaid bank draft furnished by the petitioner. In case it is not possible for the liquidator to deposit the said amount of Rs.54 Crores in an interest bearing FDR (and subject to further order/s of NCLAT), it shall be open for the petitioner to seek return of the Bank Draft with an undertaking to re-furnish the same as and when required and/or for the purpose of the re-auction process. 22. The present petition stands disposed of in the above terms. Pending application/....