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2022 (9) TMI 279 - AT - Insolvency and BankruptcySeeking a direction to the Appellant herein to acknowledge and record the transfer of ownership in the name of the Auction Purchaser - Section 60(5) of the Insolvency and Bankruptcy Code, 2016 - whether the Successful Bidder in an Auction conducted on ‘as is where is basis’ is liable to pay prior dues attached to such Auction property, when the Company is in Liquidation and the dues were claimed under ‘Operational Debt’ before the Liquidator? HELD THAT:- The material on record establishes that the Appellant herein had filed their Form-C on 09.03.2020 which was defective and the Liquidator vide email dated 09.03.2020 pointed out the deficiency and sought clarifications on the information provided. A reminder was also sent on 12.03.2020 to consider the claim of the Appellant herein as an ‘Operational Creditor’. Subsequent to the e-Auction conducted and the receipt of the sale consideration, the Liquidator allocated the funds in accordance with Section 53 of the Code in a waterfall mechanism. Once the Liquidation sale has been completed and the Certificate of Sale has been executed followed by handing over possession to the Auction Purchaser, any claim relating to such property for dues prior to the Auction cannot be raised against the Auction Purchaser specifically when the Company is in Liquidation and the dues were already claimed by the said party as an ‘Operational Creditor’, during the CIRP process as the Company was in Liquidation and the Appellant had already approached the Liquidator by filing a Form-B and the Liquidator has intimated to the Appellant that there is no amount left for the payment to any ‘Operational Creditor’, the Auction Purchaser cannot be made liable for any dues arising on the property before the purchase of the said property in this case. There are no illegality or infirmity in the Order of the Adjudicating Authority - appeal dismissed.
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