Kotak Mahindra Bank Vs Parekh Aluminex Limited (NCLT Mumbai)
NCLT Mumbai held that the private sale has to be conducted by the liquidator in a manner so as to maximize the realizations from the sale of assets. Since strategy to maximize realisation from sale of assets absent.
Facts- This Application has been filed by the Applicant, the Liquidator seeking permission to sell 5.54% Equity Stake held by the Corporate Debtor in Trishakti Power Private Limited under a Private Sale as per Regulation 33(2) of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (Liquidation Process Regulations) and in the manner specified in Schedule I of the Liquidation Process Regulations, to Amrex Marketing Private Limited (Purchaser) for Rs.35 Lakh.
Conclusion- Held that the Liquidation Process Regulations provide for certain checks and balances on the private sale in Schedule 1 thereto, which includes, inter alia, the preparation of a strategy to approach interested buyers for assets to be sold by private sale, liaising with potential buyers or their agents, completion of sale in accordance with the terms of sale, etc. The private sale has to be conducted in a manner so as to maximize the realizations from the sale of assets. The Hon’ble NCLAT in State Bank of India Vs. Bhuvee Stenovate Private Limited and Ors. [Comp. App. (AT) (Ins) No. 1013/2022] observed that the Liquidator, for conducting private sale is not to identify one buyer and sell the assets; rather, strategy has to be made to approach the interested buyer for assets which is with the object to attract more and more interested buyers to maximise the realisation from the sale of assets. Keeping in mind the above decision and considering the interest shown by the Applicant in IA.No.261/2024, we feel it appropriate to give an opportunity to the Applicant in IA No.261/2024 and other interested parties, if any, to participate in the sale process.
