Although, no specific timelines for Auction have been given in the Liquidation Process Regulations, 2016, normally Notice period of 30 days is given to get best value – Naren Seth Liquidator of Ciemme Jewels Ltd. Vs. Sunrise Industries – NCLAT New Delhi

In this case, date of publication of final E-auction notice is 02.04.2022 with merely one working day (Monday) to submit KYC, another three days upto 07.04.2022 to submit EMD of Rs. 1.15 Crores and finally one more day upto 08.04.2022 to give bids. Thus, the entire liquidation process was supposed to be completed in one week. NCALT held that (i) although, no specific timelines have been given in the Liquidation Process Regulations, 2016, normally notice period of 30 days is given to get best value. In this connection, as a referring point only, we would like to refer to the provision of sub-rule (6) of Rule 8 of the SARFAESI Security Interest (Enforcement) Rules, 2002. This also indicates that sufficient time say 30 days ought to have been give. Thus, we find the Liquidator acted in hurry in concluding the E-auction. (ii) NCLAT upheld the decision of AA wherein the E-auction was set aside and it was held that the Liquidator must bear all expenses incurred for the auction. We also do not appreciate conduct of the Liquidator in whole process as observed by the Adjudicating Authority.

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