TMI Blog2020 (1) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... s publicly advertised the auction notice in the Business Standard circulated in Delhi and Jaipur duly disclosing the asset for auctioning and followed the procedure as laid down in the Regulations 12 of (Liquidation Process Regulation) - there are no merit in the allegation. Reduction in time period - HELD THAT:- The Liquidator followed the procedures as contemplated in clause 3 of Schedule I of the Regulations, which provides that the Liquidator shall prepare the terms and conditions of sale, Regulation 2 of Schedule I and the Liquidator shall prepare a marketing strategy with the help of marketing Professionals, if required for sale of the Asset. The strategy may include releasing advertisement, preparing of information sheets for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The brief facts of the case are: 2.1 The liquidation process of the 'Corporate Debtor', viz., M/s SPM Auto Pvt. Ltd. (in liquidation) was initiated under the provision of Insolvency and Bankruptcy Code, 2016 (In short 'IBC') by the Adjudicating Authority. In that process, the Liquidator, vide e-auction information document, dated 15.02.2019, invited bids for auction of assets of M/s SPM Auto Pvt. Ltd. under the provisions of IBC. As per the said auction, 4 (four) assets of the Company under liquidation were to be auctioned. The process of liquidation followed the process of e-auctioning namely, public announcement of auction, opening of auction portal (e-auction process), submission of bid forms due diligence ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... successful bidders - 16.04.2019 to 22.04.2019 j. Payment of balance consideration by successful bidder - 22.04.2019 to 21.05.2019 3. The contention of the Appellant is that the Liquidator reduced the Reserve Price of this asset from 7.24 crore to 6.15 crore with sole objective to favour pre-decided buyer. It is further contended that the Liquidator deliberately did not disclose the area of the asset for public advertisement so that the maximum bidders could not participate in the bidding process and the assets could have been sold to a known bidder. The Liquidator deliberately reduced the time period to submit the bid forms, declaration form and EMD from 8 days, which was given in the first e-auction to 3 days in the secon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his duties as per IBC and Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. As per Regulation 12(1) of the (Liquidation Process Regulations, 2016), the Liquidator shall make a public announcement in Form-B, Schedule-II within 5 days from his appointment. III. Public announcement shall be published in one English and one regional language newspaper with wide circulation at the location of the Registered Office and Principal Office, if any, of the 'Corporate Debtor' and any other location where in the opinion of the Liquidator, the 'Corporate Debtor' conducts material business operations, on the website, if any, of the 'Corporate Debtor' and on the website of any designated by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hence we do not find any merit in the allegation. 8. Insofar as the allegations of the Appellant with regard to reducing the time period is concerned, the Liquidator followed the procedures as contemplated in clause 3 of Schedule I of the Regulations, which provides that the Liquidator shall prepare the terms and conditions of sale, Regulation 2 of Schedule I and the Liquidator shall prepare a marketing strategy with the help of marketing Professionals, if required for sale of the Asset. The strategy may include releasing advertisement, preparing of information sheets for the asset, preparing a notice of sale and liaising with Agents. Moreover, in the code and in the liquidation Regulations, no time limit was specified for the auct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion between the buyer and creditor and the buyer shall submit a report to the Adjudicating Authority in this regard, seeking appropriate orders against the colluding parties. 11. However, the Appellant did not participate in the e-auction and now making vague allegations without any substantial grounds cannot be accepted. As per Regulation 44(1) of the Liquidation Process Regulations, 2016, the Liquidator shall liquidate the 'Corporate Debtor' within a period of two years. We are of the view that there should not be any unnecessary delay and protract the liquidation process for undue advantage of some of individuals or group, which would adversely affect the liquidation process. 12. For the aforesaid reasons, we d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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