NCLAT Delhi Sets Aside The Order Of Private Sale Of Bhuvee Stenovate Private Limited
In a major Judgement, the National Company Law Appellate Tribunal set aside the order of the National Company Law Tribunal, Kolkata which had permitted a private sale of Bhuvee Stenovate Private Limited for an amount of Rs.61.05 Crores, even though the request for Private Sale had been made by the Intervener purchaser Laser Solar LLP. The order and consequent sale was set aside by...
In a major Judgement, the National Company Law Appellate Tribunal set aside the order of the National Company Law Tribunal, Kolkata which had permitted a private sale of Bhuvee Stenovate Private Limited for an amount of Rs.61.05 Crores, even though the request for Private Sale had been made by the Intervener purchaser Laser Solar LLP.
The order and consequent sale was set aside by the National Law Company Appellate Tribunal, New Delhi laying down the law relating to sale proceeds during liquidation. The National Company Law Appellate Tribunal, New Delhi held that:
1. Liquidator has to conduct the Private Sale and give opportunity to others to compete
2. Liquidator has to seek permission from the Adjudicating Authority to proceed with a Private Sale
3. Liquidator has to prepare a strategy to approach interested buyers for assets to be sold by a Private Sale.
4. Adjudicating Authority could not have concluded the sale of the Corporate Debtor without giving an opportunity to the liquidator to take steps for Private Sale.
The present Judgement will act as a precedent for the procedure of a Private Sale under the Insolvency and Bankruptcy Code, 2016 focusing on the role of the Liquidator and the jurisdiction of the Adjudicating Authority while specifically dealing with a Mode of Sale under Regulation 32 and 33 of the Insolvency and Bankruptcy Board of India (Liquidation) Rules, 2016.
Case Title: State Bank Of India V. Bhuvee Stenovate Pvt. Ltd. & Ors.
Case No: Comp. App. (AT) (Ins.) No. 1013 of 2022
Counsel For Applicant: Mr. Vaibhav Gaggar, Mr. Robin Singh Sirohi and Mr. Dev Karan, Advocates.
Counsel For Respondent: Mr. Rishav Banerjee, Mr. Saptarshi Mandal and Pratiksha Mishra, Advocates for R-1. Mr. Abhijeet Sinha, Mr. Sanjay Bose, Mr. Manan Verma, Mr. Saikat Sarkar, Mr. Rishi Singhal and Mr. Akash Chatterjee Advocates for R-2. Mr. Krishan Kumar, Ms. Namrata Chadha, Advocates for R-5.