Successful Bidder Can't Claim Exemptions From Statutory Compliance Merely On Grounds Of Being Successful Bidder Of Corporate Debtor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Arun Baroka (Technical Member) has held that a successful bidder is not entitled to claim exemptions from statutory compliances merely on the ground that the Appellant was a successful bidder of the corporate debtor. The present appeal has been filed under section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC) against an order passed by National Company Law Tribunal (NCLT) seeking transfer of ownership of Gajanan Solvex Limited to the Applicant along with essential reliefs and concessions. The Appellant submitted that the Adjudicating Authority failed to grant various reliefs and concessions which were granted by co-ordinate Bench in the matter of Venus Rolling Mills Pvt. Ltd. The Adjudicating Authority rejected the reliefs sought by the Appellant and observed that the Appellant may apply to the concerned authorities. It further observed that the prayers were wide and general which covered numerous authorities, local bodies and tax departments. Just because the Appellant is a successful bidder of the corporate debtor, it does not entitle the Appellant to claim exemption from statutory compliances. The Tribunal expressed surprise at the kind of reliefs sought by the Appellant and observed that such reliefs were beyond the scope of what could be prayed for. It observed that filing such an application tantamounts to wastage of court's time. It held that “Mere fact that no specific reason has been given in Column 2 does not vitiate the order. There is no statutory entitlement of the Appellant to claim a particular relief and relief has been granted by the Adjudicating Authority only with the intent and purpose to see that the Corporate Debtor is run by Successful Bidder who have purchased the same as a going concern” Accordingly, the present appeal was dismissed. Case Title: Shanti International, Through Amol Mittal Versus Ram Singh Setia, Liquidator of Gajanan Solvex Ltd. Case Number: Company Appeal (AT) (Insolvency) No. 1063 of 2025 Judgment Date: 01/09/2025Click Here To Read/Download The Order

Successful Bidder Can't Claim Exemptions From Statutory Compliance Merely On Grounds Of Being Successful Bidder Of Corporate Debtor: NCLAT

Mohd Malik Chauhan

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