Whether Liquidator is authorized to sell the assets of the Corporate Debtor in blocks? – Stressed Assets Stabilisation Fund v. Ms. Rekha Kantilal Shah – NCLT Mumbai Bench

NCLT Mumbai Bench held that: (i) The Liquidator has been provided with ample powers not only to sell the land in parcels but also not to be bound by the consultation with the stakeholders. (ii) Section 36 of the IB Code 2016 categorically stipulates the scope and ambit of the liquidation estate. Sub-Section (4) of Section 36 is with respect to the assets which shall not be included in the liquidation estate and shall not be used for recovery in the liquidation. (iii) The Liquidator is authorized to sell the immovable and movable property of the Corporate Debtor in liquidation through a public auction or a private contract, either collectively, or in a piecemeal manner. (iv) The proviso to Section 35 (2) of the IBC makes it clear that the opinion of the stakeholders would not be binding on the Liquidator.

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