Power Mech Projects Ltd. Vs Essar Power (Jharkhand) Ltd. (NCLAT Delhi)
NCLAT Delhi held that Liquidator is jurisdictionally empowered to proceed with private sale of Corporate Debtor by adopting Swiss Challenge Mechanism. Thus, adjudicating authority didn’t commit any error in allowing application filed by Liquidator.
Facts- This Appeal has been filed challenging the order dated 11.12.2024 passed by National Company Law Tribunal, Principal Bench allowing appeal filed by the Liquidator seeking permission of the Adjudicating Authority, to sell the Corporate Debtor (“CD”) as a going concern through private sale method. The Adjudicating Authority by the impugned order allowed the Application. Aggrieved by which order, this Appeal has been filed.
Conclusion- The present is a case where Liquidator filed an Application seeking direction under Regulation 35(h) of the Regulations and the Adjudicating Authority has approved such prayer. When Adjudicating Authority has granted the approval, it cannot be said that the Liquidator exercised any unguided or arbitrary powers.
Held that the power and duties given to the Liquidator under the IBC and the 2016 Regulations, has to be exercised within the four corners of the statutory provisions. The decision taken by the Liquidator to proceed with private sale by adopting Swiss Challenge Mechanism, cannot be said to be a decision beyond the jurisdiction or authority of the Liquidator. Furthermore, SCC has already endorsed the said decision after detailed discussion as noted above. The Adjudicating Authority did not commit any error in allowing prayers made in application filed by the Liquidator.
