Plea for Extension of Time to Pay the Balance Bid Amount Dismissed as Bidder Failed to Comply With Tribunal’s Directions
- Blog|News|Insolvency and Bankruptcy Code|
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- Last Updated on 26 January, 2025
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Case Details: Nimmagadda Surya Pradeep Bio-Tech (P.) Ltd. v. Kamineni Steel and Power (P.) Ltd. - [2025] 170 taxmann.com 612 (NCLT-Hyd.)
Judiciary and Counsel Details
- Dr. N. Venkata Ramakrishna Badarinath, Judicial Member & Veera Brahma Rao Arekapudi, Technical Member
-
Y. Suryanarayana, Adv. for the Applicant.
-
Raja Shekar Rao Selvaji, Adv. for the Respondent.
Facts of the Case
In the instant case, the Adjudicating Authority initiated the liquidation proceedings of the corporate debtor and appointed a liquidator. The liquidator decided to sell the corporate debtor as a going concern and issued invitation of expression of interest (EoI) inviting bid from prospective bidders to purchase the corporate debtor under liquidation.
The Applicant/successful bidder participated in the e-auction conducted by the liquidator on 26-8-2020 and paid Rs. 5 crores as Earnest Money Deposit (EMD) to take part in the e-auction. The applicant was required to pay the balance bid amount of Rs. 346 crores on or before 24-11-2020 (i.e., 90 days from the date of the e-auction).
Thereafter, the applicant filed an instant application praying the Tribunal to grant an extension for the completion of the sale of the corporate debtor as a going concern.
It was noted that despite providing sufficient opportunity to the applicant, the applicant failed to comply with the directions of the Tribunal issued from time to time and had been praying time on some pretext or the other.
NCLT Held
The NCLT held that there were no bona fides in plea of the applicant for further extension of time and the same was to be dismissed. Therefore, the liquidator was directed to forfeit and invoke EMD of Rs. 5 crores and to start the bidding process afresh and to complete the whole process within six months.
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