Buyer in Liquidation Auction sale cannot be allowed to step back on the ill-founded ground of absence of Order of NCLT extending the period of 90 days to conclude the sale – Melkar TTI Biofuels Ltd. v. Mr. Dharit Kishorbhai Shah The Liquidator – NCLT Mumbai Bench
December 12, 2023
NCLT Mumbai Bench held that:
(i) The Applicant has based its case merely on the proposition that Order extending period of 90 days for conclusion of sale of Corporate Debtor as going concern was not communicated to him as the same was not found uploaded on NCLT’s website.
(ii) It is undisputed proposition that the EMD condition is generally stipulated to ensure that the prospective bidders do not back out from the process in between thereby wasting time and delaying the process further. The Liquidator had unequivocally communicated to the Applicant that the Sale as a Going Concern was in accordance with the process of Tender documents and the Code, hence the Applicant cannot be allowed to step back on the ill-founded ground of absence of Order of this Tribunal extending the period of 90 days to conclude the sale.
Hence, the Applicant has to suffer the consequences for such withdrawal as provided in the Revised Tender Documents.
