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2022 (5) TMI 1459 - NATIONAL COMPANY LAW TRIBUNAL MUMBAIAuction - sale of corporate debtor - Whether the sale of the Corporate Debtor as a going concern under the Code and the Regulations includes both assets and liabilities or assets alone without any liabilities? - HELD THAT:- The issue whether the sale of the Corporate Debtor as a going concern includes assets and liabilities or assets alone is no longer res-integra. The Hon'ble NCLAT in M/S. VISISTH SERVICES LIMITED VERSUS S.V. RAMANI, UNITED CHLORO – PARAFFINS PRIVATE LTD., STATE BANK OF INDIA [2022 (1) TMI 460 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI] in the similar circumstances of the present case on hand, where it was held that Sale of a Company as a 'Going Concern' means sale of both assets and liabilities, if it is stated on 'as is where is' basis. In the present case on hand, the application is filed by auction purchaser himself seeking the declaration without distribution of the liquidation proceeds to the creditors and before issuing sale certificate and possession of the Corporate Debtor. In addition to this, the liquidator in this case clearly put the Applicant on notice that sale of the Corporate Debtor as going concern as is where is' basis and the Applicant is duty bound to make due diligence with regard to the local taxes/maintenance fees/electricity expenses/water charges etc., outstanding as on date or yet to fall due in respect of the relevant asset should be ascertained by the E-Auction process applicant and would be borne by the successful bidder. The Applicant is not entitled for the relief sought for - application disposed off.
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