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2020 (3) TMI 164 - AT - Insolvency and BankruptcyMaintainability of appeal - Liquidation of the Corporate Debtor to sell the Corporate Debtor as a going concern - E-auction - The contention that the Appellant Bank has no locus to file the Appeal is without any merit because as per section 61(1) of the IBC which starts with a non-obstante clause, any person aggrieved by the order passed by the Adjudicating Authority is entitled to file an appeal. The Appellant Bank being the lead Financial Creditor of the consortium of banks of the Corporate Debtor, who had opposed the intervention by NCLT in the auction, is well within its rights to approach this Hon'ble Appellate Tribunal. HELD THAT:- It is found that R-2 to R-4 did not participate in the e-auction and filed an application as objectors and offering a higher price in order to create a lust for worth maximisation and thereby vitiated the whole process. In any case R-1 has also withdrawn the offer without there being any corresponding provision in the IBC and NCLT was entitled to forfeit their entire amount. Regulation 32, 32(A) and 33 of Insolvency and Bankruptcy Board of India liquidation process regulation 2016, provides for the mode of liquidation. Regulation 32 of Insolvency and Bankruptcy Board of India Liquidation Process Regulation 2016 the liquidator should originally sell the Corporate Debtor through an auction and private auction is permitted only in certain classes of assets which are of perishable nature, assets likely to deteriorate in value if not sold immediately, if it is sold at a higher price than the Reserve Price of a failed auction etc. Hon'ble Supreme Court has already observed in Valji and Khimji Company v. Official liquidator of Hindustan nitro product (Gujarat) limited and others. [2008 (8) TMI 562 - SUPREME COURT] where bids were received and were opened in the Court. The highest bid was that of the appellant M/s. Valji Khimji & Company amounting to ₹ 3.51 crores. With the consent of the learned advocates representing the secured creditors, the said bid was accepted and the sale was confirmed on 30-7-2003. The Court directed the appellant to deposit 25% of the purchase price i.e. ₹ 63,98,000/- within 30 days from the said day and to deposit the balance amount within the next three months. The Court also directed that the amount may be deposited in instalments, but no instalment should be less than ₹ 5 lakhs. Accordingly Hon'ble Supreme Court confirmed the auction sale in favour of the Appellant. The appeal is, therefore, maintainable in view of the provision of Section 61 (1) of IBC as SBI has a large stake of ₹ 469.29 cr. - appeal allowed.
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