When auction advertisement not indicate the sale is a Slump Sale or as a Going Concern, it is open for Auction Purchaser to treat the sale on Going Concern basis | SCC decision to sell as a slump sale basis without exploring the options provided in Liquidation Regulations 32(d) and 32(e) is against the objectives of the IBC, 2016 – Mr. Daulat Ram Jain, RP Vs. ASL Enterprises Ltd. – NCLT Kolkata Bench
The Hon’ble NCLT Kolkata Bench held that the intention and the decision taken by the SCC to sell the corporate debtor on slump sale basis has not come out clearly in the advertisement when the entire factory is sold along with the plant and machinery. In such a scenario it is open for the auction purchaser to treat the sale on going concern basis, particularly when the entire plant, along with land, buildings, machineries has been sold. It is the successful auction purchaser who is in a position to decide whether he will be in a position to run the Company as a going concern or not with or without carrying out necessary repairs/refurbishing.