JSK Estate Private Limited Vs Sundaresh Bhat (NCLT Mumbai)
NCLT Mumbai held that entertaining objection raised by the applicant after the sale is confirmed unjustified as there is no allegation of fraud. Accordingly, application filed u/s. 60(5) of the IBC dismissed.
Facts- This is an application filed by the Applicant u/s. 60(5) of the Insolvency and Bankruptcy Code, 2016 praying to recall and set aside the Order dated 09th September, 2022 declaring Respondent No.02 as a successful bidder for the sale of assets of Corporate Debtor and all other reliefs sought by the Applicant of the Application are consequential to the aforesaid prayer. Essentially, the present application has been filed by the Applicant, inter-alia, challenging the e-auction sale process conducted for purchase of the Corporate Debtor in liquidation on a going concern basis which, according to the Applicant, was carried out in contravention of the provisions of the IBBI (Liquidation Process) Regulations, 2016.
Conclusion- Held that at this belated stage, after the sale has already been confirmed, the objections raised by the Applicant cannot be entertain especially when there is no allegation of fraud. Besides, the Applicant was never in picture ever since the CIRP commenced against the Corporate Debtor. Therefore, simply on the ground that the Applicant did not get to know about the auction proceedings or that it is willing to offer higher price, the auction process cannot be set aside at this belated stage. In our considered view, the Applicant is guilty of delay and latches and, therefore, the application is liable to rejected on this ground alone.
