Bhavik Bhimjyani Vs Uday Vinodchandra Shah (NCLAT Delhi)
NCLAT Delhi held that proposed sale in the form of private sale to related party being not in conformity with Regulation 33 of IBBI (Liquidation Regulations), 2016 hence order of Adjudication Authority allowing such private sale is liable to be set aside.
Facts- The present Appeal challenges the Impugned Judgment and Order dated 05.12.2023 passed by the Adjudicating Authority by which sale of assets of the Corporate Debtor by way of a private sale to a related party was allowed without considering the objections raised by the Appellant objecting to the sale by way of its application and despite better offers being under consideration by the Adjudicating Authority.
Conclusion- Held that the proposed sale in the form of a private sale in favour of Leisure Enterprises LLP-R2, as approved by the Adjudicating Authority in IA 1577, is not in conformity with the statutory provisions, particularly Regulation 33. The Order of the Adjudicating Authority is therefore set aside. Moreover, for a transparent and unbiased liquidation process, a new Liquidator should be appointed immediately. Accordingly, Adjudicating Authority should take steps to appoint a new Liquidator within a period of 15 days of presentation of this Order. New Liquidator should ensure that the whole process of liquidation is taken up afresh starting with public auction or private as per law. All related Appeals as noted above and all pending IAs, if any, are disposed of. No order as to costs.
