Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2020 (1) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 235 - Tri - Insolvency and BankruptcyLiquidation proceedings - Public auction of the assets of the Corporate Debtor - reduction in reserve price - HELD THAT:- The changes made by the Liquidator in the second auction in April are in consonance with the power conferred by the Code and the Liquidation Regulations. The Liquidator can reduce the reserve price if the previous auction at the original reserve price has failed. The Code and the Liquidation Regulations do not specify a timeline for the auction process and the same can be framed by the Liquidator in his discretion. It does not seem unreasonable that the timeline was shortened for the auction of one property as compared to the timeline set for the auction of four properties, especially when the information of public auction had been made public during the previous round of auction - The Liquidator has publicly advertised the auction by publishing the auction notice in the Business Standard circulated in Delhi and Jaipur. Further, the condition that the balance sale consideration has to be paid within 15 days is only a procedural provision in Schedule-I and if the Liquidator, for justified reasons deems it fit to increase the period of payment as it would help maximize participation and returns of the auction, then the Liquidator in his discretion can be allowed to do so, especially in light of the power given to the Liquidator to set the timeline of the rest of the process and the other terms and conditions of the sale. Application dismissed.
|