The factum of litigation by Writ Petition in High Court by a third party and suit by certain parties in the property cannot be ground for the Successful Bidder of not making payment of balance amount – ASJ Finsolutions Pvt. Ltd. Vs. Best Foods Ltd. Through Liquidator & Ors. – NCLAT New Delhi

In this case, Liquidator issued the letter of intent on 16.11.2021. As per the letter, the balance amount has to be deposited in 30 days or with interest upto 90 days. Balance amount was not deposited by the Appellant and thereafter an application filed by the Appellant for issuing direction to the Liquidator for claiming the chain documents of the property sold to the Appellant through e-auction process initiated vide notice dated 25.10.2021 for verification before balance sale consideration amounting to Rs.19,17,00,000/- be paid which has been rejected by Adjudicating Authority. NCLAT held that the factum of litigation by Writ Petition in High Court by a third party and suit by certain parties in the property cannot be ground for the Successful Bidder of not making payment of balance amount. The balance amount was to be deposited within the time as required in Schedule-I of Liquidation Regulation, 2016. This Appellate Tribunal while considering provisions of the Schedule-I of the Liquidation Regulation, 2016 in Potens Transmissions & Power Pvt. Ltd Vs. Gian Chand Narang (2022) ibclaw.in 359 NCLAT has laid down that the said timeline is statutory.

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If any Public depositor applies showing due of the debt claiming itself as operational creditor and the Resolution Professional or the Tribunal do not accept the claim on the ground that they are not financial creditor, we allow the appellant to raise the question before the Tribunal and if any adverse decision is given by the Tribunal, it will be open to the appellant to raise the issue before NCLAT- Hind Motors India Ltd. Vs. Adjudicating Authority NCLT, Chandigarh – NCLAT New Delhi

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