If Auction sale notice was issued initially prior to the insertion of provision of Liquidation Regulation 32A, Regulation 32A(4) cannot be pressed in service – Haravtar Singh Arora, Erstwhile promoter of James Hotel Vs. Navneet Gupta, Liquidator of James Hotel & Anr. – NCLAT New Delhi
March 3, 2023
Learned Counsel for the Appellant submits that the property was a leased property from the Chandigarh Administration and there was no permission taken from the Chandigarh Administration for transfer of the property. He further submits that under Regulation 32A(4), if the sale of the corporate debtor is not done within 90 days from the liquidation commencement date, Liquidator was to proceed to sell the assets under Clause ‘a’ to ‘d’ of Regulation 32-A. NCLAT held that under Regulation 32A sub-clause 4, auction did not take place within 90 days hence assets ought to have been sold under Clause ‘a’ to ‘d’. It is not denied that auction sale notice was issued initially prior to the insertion of provision of Regulation 32A, hence we are of the that in the auction, regulation 32A sub-clause (4) cannot be pressed in service.