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2022 (5) TMI 1501 - THE NATIONAL COMPANY LAW TRIBUNAL PRINCIPAL BENCH, NEW DELHIE-auction - Seeking approval of Acquisition Plan submitted by a consortium in the liquidation proceedings with respect of the Corporate Debtor and declare that the same to be binding on the Corporate Debtor and its stakeholders - HELD THAT:- The first issue was with reference to order dated 05.05.2021, where the earlier Bench has flagged the issue of high CIRP cost. To rebut this argument, Mr. Vashisth, Ld. Sr. Counsel was able to point out, from pg. 212 and 213 of the additional affidavit dated 29.05.2021, by way of a detail chart showing the CIRP cost. It primarily was in relation to payment of wages, salary etc. When this was pointed out, Shri Gopal Jain, Sr. Counsel fairly conceded that this issue now has become irrelevant. The next issue that was raised by Mr. Gopal Jain, Ld. Sr. Counsel was that they have made an offer by way of settlement proposal dated 03.04.2022, which was submitted before the stakeholders. Hence, the same should be considered first. The said contention was rebutted by Mr. Abhinav Vashisht, Ld. Sr. Counsel, stating that the stakeholders have already rejected that proposal, so that proposal has become academic - the ex-promoter has no locus standi to participate or agitate in this proceeding or submit a settlement proposal at this stage, in view of the finding of this Adjudicating Authority, Hon'ble NCLAT and Hon'ble Supreme Court, wherein it was held that, the ex-promoter has become ineligible in terms of Section 29A(h) of the Code as well as proviso to sub-section (f) of Section 35 of the Code. The third objection was that, the e-auction is dated 12.10.2020 and 14.10.2020. The letter of intent was issued on 16.10.2020 and therefore, in terms of the bid process document the entire amount should have been paid within 90 days i.e. before 15.01.2021 - Since this amount has not been paid, the sale cannot be termed as confirmed. As a result, the ex-promoter is entitled to participate and make an offer. This contention appears to be a misconception of the bid process document para 1.16.7 - there is no contradiction between the bid process document and clause 12 of schedule-I - mode of sale and therefore, this argument has no basis. The e-auction was conducted on 12.10.2020 and 14.10.2020 on the reserve price of Rs. 40 crores, and the letter of intent issued in favour of respondent nos. 1 to 4 on 16.10.2020, stands confirmed. The sale of the Corporate Debtor as a going concern in favour of respondent nos. 1 to 4 stands confirmed. As a result, this application stand allowed.
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