From the Liquidation Regulation 33 that the Adjudicating Authority has the power to permit the private sale subject to certain conditions – CS Sunil G Nanal Liquidator of Facor Steels Ltd. – NCLT Mumbai Bench
The Adjudicating Authority observed that it is clear from the Liquidation Regulation 33 that the Adjudicating Authority has the power to permit the private sale subject to certain conditions. In the case in hand since the secured creditors have already given their consent for private sale, this Adjudicating Authority is of the opinion that the request of the Liquidator be considered. Accordingly, the sale of the property of the Corporate Debtor by private treaty is allowed and liquidator is permitted to sell the property i.e. factory structure and sheds for ₹15,00,00,000/- excluding applicable indirect taxes, stamp duty, cess, if any. Therefore, in view of the above provisions of Section 53 of the Code the liquidator have to act as provided under Section 53 of the Code for which the specific direction is not required from this Adjudicating Authority. In view of the provisions of Section 35 and Section 53 of the Code the liquidator is also seeking permission of this Bench to distribute the proceeds of the sale. However, the liquidator has to arrive at the amount available for distribution after deducting the costs, if any, as required under section 53(1)(a). Further there are no details as to amount payable to labourers in terms of section 53(1)(b)(i). Hence no directions can be given in respect of this prayer at this stage and he has to file application providing all the details preferably by serving a copy to the security interest holders over this asset. MA is partially allowed and disposed of.