TMI Blog2023 (7) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... In view of the subsequent facts and notices brought on record by the Appellant and other terms and conditions of the process document as extracted, the ends of justice will be served in granting liberty to file an Application before the Adjudicating Authority claiming reliefs/concessions/directions which may be necessary for operationalisation of the Corporate Debtor as per terms and conditions of the process document. While granting such liberty to the Appellant it is observed that law is well settled, a successful bidder who is declared as successful bidder of sale as going concern can seek access of the Adjudicating Authority and may pray for necessary directions in accord with and in consonance with the process document in the liquidation proceedings. In result, appeal partly allowed and it is held that applicant s prayers i.e. relief/concessions/directions needs consideration by the Adjudicating Authority for which liberty granted to the Applicant to make a fresh Application containing prayers which may be commensurate and in accord with terms and conditions of the process document of e-auction process document. Appeal disposed off. - Company Appeal ( AT ) ( Insolven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claims/rights/dues. d. Terms and Conditions of e-Auction under Heading P(II) Other Terms and Conditions of E-auction contains certain additional terms and conditions. Under clause 2, following has been stated: 2. The Liquidator has proposed to conduct sale of the Corporate Debtor as a going concern in its totality as contemplated under Regulation 32(e) of the Liquidation Regulations through E-auction Process, as under: - a. Upon payment of 25% of the bid amount, A Term Sheet shall be executed between the Liquidator representing the Corporate Debtor and the successful bidder to give effect for sale of the Corporate Debtor as a going concern in its totality alongwith its employees/workers. The broad terms are stated herein below: - The cut-off date for the purposes of determination of all assets and liabilities of the Corporate Debtor shall be the liquidation commencement date, i.e., January 9th 2020. The sale of the Corporate Debtor as a going concern shall result in the transfer of the entire available assets of the Corporate Debtor in favour of the successful bidder on the date of transfer after payment of full sale consideration amount, i.e., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reserve price of INR 73 Crores. There was certain challenge by another bidder which challenge was unsuccessful. The Appellant made the payment of sale consideration. Liquidator issued a Sale Certificate dated 22nd June, 2022 to the Appellant. Appellant thereafter filed an I.A. No. 3207/2022 in Company Petition seeking certain directions/reliefs/concessions and the provisions which according to the Appellant were necessary for fulfilling and actualizing the sale of the corporate debtor as a going concern. f. The Application was listed before the Adjudicating Authority, the Adjudicating Authority by Order dated 02.12.2022 disposed of the Application. In the order, the Adjudicating Authority noticed large number of prayers which were made by Appellant in the Application and after extracting prayers made in the Application, the Adjudicating Authority disposed of the Application by following order: The Applicant in this case is a successful auction purchaser of the Respondent/Corporate Debtor i.e. namely M/s. Apex Buildsys Limited. Though the application is filed with a number of reliefs. In this application, we are not constrained to go to every aspect of the relief ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... editors, no creditors can insist for any claim which stood settled under the liquidation. It is submitted that Adjudicating Authority have passed several orders in relation to sale as a going concern allowing various reliefs, concessions and directions whereas several reliefs and concessions have been granted. Learned Counsel for the Appellant submits that due to non-consideration of various reliefs, concessions and directions which are necessary for operationalisation of Corporate Debtor as a going concern, the objective of the Code shall not be fulfilled. 5. Learned Counsel for the Liquidator during his submissions supported the claims for reliefs, concessions and directions as was made by the Applicant. However, in the written-submissions, the Liquidator has submitted that there are certain reliefs claimed by the Appellant in I.A. No. 3207 of 2022 which is neither permissible under the Code nor in terms of settled position of law. Liquidator further submits that sale of the Corporate Debtor as a going concern would entail transfer of both assets as well as liabilities of the Corporate Debtor in favour of the Successful Bidder. Learned Counsel for the Liquidator further raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts. 10. In view of the subsequent facts and notices brought on record by the Appellant and other terms and conditions of the process document as extracted, we are of the view that ends of justice will be served in granting liberty to file an Application before the Adjudicating Authority claiming reliefs/concessions/directions which may be necessary for operationalisation of the Corporate Debtor as per terms and conditions of the process document. 11. We may also observe that prayers which were included in I.A. No. 3207 of 2022 were too elaborate and general prayers which cannot be made by a Successful Bidder who have been declared as Successful Bidder. Successful Bidder on e-Auction of the Corporate Debtor as a going concern can make only such prayers for reliefs/concessions which are commensurate and in accordance with the terms and conditions of the process document. Prayers in general in a very wide term as contained in I.A. No. 3207 of 2022 may not require any consideration by the Adjudicating Authority. 12. We while granting such liberty to the Appellant observe that law is well settled, a successful bidder who is declared as successful bidder of sale as going concer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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