06/09/2023

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

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 Read Post »

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