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2021 (12) TMI 484 - AT - Insolvency and BankruptcyCIRP proceedings - private sale of assets - failure to e-auction process for the composite assets of the Corporate Debtor was taken up by the liquidator. - HELD THAT:- It comes out from a reading of Section 35 of IBC and Regulation 8 of Liquidation Regulations is that the proviso that any such consultation shall not be binding on the liquidator is ostensibly so to enable the liquidator to perform its duties in a fair, impartial and judicious manner for realising the maximum value from the disposal of assets of the Corporate Debtor. In our opinion the views of the stakeholders regarding the sale of assets are both desirable and valuable, especially as they are the ultimate beneficiaries of the liquidation process and also because substantial period of time (over two years and seven months) has already been spent in the liquidation process without any fruitful results. The specific context in which an auction is carried out can only elucidate the aspect of arbitrariness and favouritism or otherwise. Thus, in the present appeal where the Impugned Order challenging the stoppage of second Swiss Challenge Process and taking up a fresh private sale process has been challenged, it is seen that the decision of the stakeholders and the liquidator, upon which the Adjudicating Authority has based its order does not grant any particular party any favour. It is driven by the stakeholders’ wish to get the liquidation process concluded early without losing sight of maximization of value of assets. Also, even though this is a private sale as opposed to sale by a government authority, we are of the opinion that the standards and norms of transparency, fairness and responsibility should be adopted without any qualification or reservation and all prospective bidders should get sufficient notice and time to enable them to participate in the bidding in an effective manner. The process should be taken up after proper notice to prospective buyers and not limited to chosen few. The impugned order directs the Liquidator to complete the entire private sale (relating to the assets contained in the WSRPL offer) within three weeks from the date of Adjudicating Authority’s order - it is directed that in partial modification of the impugned order, that while the second Swiss Challenge Process stands cancelled, the private sale process should be undertaken in accordance with the directions contained in the preceding paragraph of this judgment as per relevant legal provisions. Appeal disposed off.
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