Merely because Liquidator has the discretion of carrying out multiple auction it does not necessarily imply that he would abandon or cancel a valid auction fetching a reasonable price and opt for another round of auction process with the expectation of a better price – Eva Agro Feeds Pvt. Ltd. Vs. Punjab National Bank and Anr. – Supreme Court
In this important judgment, Hon’ble Supreme Court has interpretated various issues as:
(i) Powers and duties of the Liquidator
(ii) Requirement of reasons for cancellation of the highest bid
(iii) Para 1(11A) was inserted in Schedule I vide notification dated 30.09.2021 is prospective or retrospective
(iv) Cancellation of the auction sale in liquidation process
(v) Ineligibility of retired/ex-Director of the Corporate Debtor to participate in Auction sale
(vi) Date on ineligibility of the Buyer under Section 29A attract