M/s. R. K. Traders & Anr. Vs. M/s. ASREC (India) Ltd. and others – DRAT Allahabad Bench

DRAT Allahabad Bench held that the purpose of public auction is to fetch the maximum price of the asset/property to be auctioned and to liquidate the dues. Addition of such clause in the ‘e’ auction notice debars the other bidders and preference was given to a party, who had earlier purchased the plant and machinery under the proceedings of auction held by the NCLT, meaning thereby that prior to publication of e-auction sale notice, the match was already fixed. Such proceedings cannot be held to be just and fair. Such condition will only amount to prefixing the auction in favour of that particular purchaser, who may be the lowest bidder in a public auction and the bid of the highest bidder is rejected and issuance of such notice is only an eye wash, therefore, the entire proceedings in pursuance thereto cannot be sustained in the eye of law.

M/s. R. K. Traders & Anr. Vs. M/s. ASREC (India) Ltd. and others – DRAT Allahabad Bench Read Post »