Whether even after attachment of the assets of the corporate debtor under PMLA Act, the Successful Auction Purchaser is required to deposit the entire sale amount and whether AA can order for refund of EMD and first installment with interest – Nitin Jain (Liquidator of PSL Ltd.) Vs. Lucky Holdings Pvt. Ltd. (Successful Auction Bidder of PSL Ltd.) – NCLAT New Delhi

The question to be answered is as to whether even after attachment of the assets of the corporate debtor under PMLA Act on 02.12.2021, the auction purchaser was required to deposit the entire sale amount. Before the Order of attachment was passed on 02.12.2021, no default can be said to have committed by Auction Purchaser in depositing the amount since first installment was deposited within time and the successful purchaser had 90 days time to deposit the balance amount and before expiry of 90 days the assets of the corporate debtor were attached. In view of the attachment of the assets of the corporate debtor on 02.12.2021, Liquidator can neither complete the sale, can issue sale certificate nor can hand over the assets of the corporate Debtor to the Successful Auction Purchaser and due to aforesaid event the Application was filed by the Successful Auction Purchaser to withdraw from auction and for refund of the EMD. Even in a case where Successful Auction Bid as going concern is not approved, Successful Auction Bidder is not entitled for any Interest on the EMD and 1st Installment.

Whether even after attachment of the assets of the corporate debtor under PMLA Act, the Successful Auction Purchaser is required to deposit the entire sale amount and whether AA can order for refund of EMD and first installment with interest – Nitin Jain (Liquidator of PSL Ltd.) Vs. Lucky Holdings Pvt. Ltd. (Successful Auction Bidder of PSL Ltd.) – NCLAT New Delhi Read Post »