Nimmagadda Surya Pradeep Bio-Tech Pvt. Ltd. Vs Kamineni Steels & Power India Pvt. Ltd. (NCLAT Chennai)
NCLAT Chennai owing to the situation prevailing due to Covid-19, the earnest money should not be permitted to be forfeited, where a subsequent fresh auction has taken place and the property has been sold at a higher price. Accordingly, directed to refund 75% EMD and retain 25% EMD.
Facts- The short controversy, which would be required to be considered by us, in the instant company appeal, would be limited to the extent as to whether the Appellant herein, being determined as to be a successful bidder in the liquidation proceedings and having apparently defaulted in the remittance of the amount which was the settled due to be paid under the terms and conditions of the tender document, could be granted any leverage by way of an extension of time period to pay the amount, beyond the time period stipulated under the tender document. It will also be needed to considered as to whether, as prayed by the Ld. Counsel for the Appellants, that in case it is not possible to grant an extension of time to deposit the amount due to be paid under the tender document by the Appellant, who had been determined to be the successful bidder, the Earnest Money Deposit (EMD) remitted by him can be returned back to him as now the subsequent sale process has been completed and settled in favour of a third person, at a higher price than, the price at which the same was awarded to him.
