S P Construction Vs Narendra Kumar Sharma (NCLAT Delhi)
NCLAT Delhi held that under the Liquidation Regulation 2016, there is a statutory requirement of payment of bid amount within 90 days. Thus, liquidator rightly forfeited EMD and cancelled sale certificate for failure to make payment by successful bidder within prescribed time.
Facts- The Liquidation Proceedings against the Corporate Debtor commenced by an Order passed by the Adjudicating Authority on 16.09.2020 and 06.11.2020. The Liquidator published Sale Notice for reserve price on 12.08.2021 fixing sale price of 6.50. No bids came hence another e-Auction Notice was issued. The Appellant submitted its e-bid in pursuance of Sale Notice 12.09.2021. EMD amount was also deposited by the Appellant of Rs.58. 10 Lakhs. E-Auction was conducted on 17.09.2021 and the Appellant highest bid of Rs.5,81,00,000/- was accepted. On 18.09.202 1, Appellant was declared as Successful Bidder by email and thereafter Appellant made further payment of Rs. 58.10 Lakhs as 2nd instalment. On 08.11.2021, Liquidator has also issued a Sale Certificate to the Appellant. The Appellant however did not make the payment within the time allowed.
The Liquidator issued a show cause Notice on 04.12.2021 asking the Appellant to pay the balance amount with interest on or before 11.12.2021, however the balance was not paid and the Liquidator cancelled the Sale Certificate. Aggrieved by the cancellation of Sale Certificate the appeal was filed by the Appellant before the Adjudicating Authority which came to be rejected by the Impugned Order.
