Liquidator declared a H-1 Bidder as Successful Bidder whereas SCC considered H-2 Bidder as a Successful Bidder in the private sale in liquidation process – Labhanshi Multitrade Pvt. Ltd. Vs. Amresh Shukla Liquidator, Girdharilal Sugar and Allied Industries Ltd. – NCLT Indore Bench

In this case, Liquidator declared a H-1 Bidder as Successful Bidder whereas SCC considered H-2 Bidder as a Successful Bidder in the private sale in liquidation process.

Hon’ble NCLT Indore Bench observes that the liquidator has conducted the process in consultation with only one SCC member namely Canara Bank. The meetings were conducted by giving a very short notice to the other members. The result was that the other members could not take part into any of such meetings. Also, there are two mode of sales as provided in regulation 33 of the IBBI (Liquidation Process) Regulations-(1) through an auction, (2) by means of private sale. The manner in which the liquidator is to conduct such sales are specified in schedule-I thereof. A careful reading of the provisions of Section 33 together with the method as provided in schedule-I clearly requires that the liquidator will have to ordinarily sale the assets of the corporate debtor through a public auction as specified in schedule-I.

Liquidator declared a H-1 Bidder as Successful Bidder whereas SCC considered H-2 Bidder as a Successful Bidder in the private sale in liquidation process – Labhanshi Multitrade Pvt. Ltd. Vs. Amresh Shukla Liquidator, Girdharilal Sugar and Allied Industries Ltd. – NCLT Indore Bench Read Post »