# In the matter of ASJ Finsolutions Pvt. Ltd. vs. Best Foods Ltd. Through Liquidator & Ors. Company Appeal (AT) (Insolvency) No.492 of 2023

> NCLAT judgment dated 2023-04-21. Citation: TCN-2023-NCLAT-00588. ASJ Finsolutions Pvt. Ltd. filed an appeal against the order passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 21 Apr 2023
- **Citation:** TCN-2023-NCLAT-00588
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/asj-finsolutions-pvt-ltd-vs-best-foods-ltd-through-liquidator-ors-company-appeal-8e0ec591

## Summary

### Background

ASJ Finsolutions Pvt. Ltd. filed an appeal against the order passed by the Adjudicating Authority on 31.03.2023, which rejected the Appellant's application for issuing directions to the Liquidator to claim chain documents for property sold to the Appellant through an e-auction. The e-auction was initiated via a notice dated 25.10.2021, requiring verification before the balance sale consideration of Rs.19,17,00,000/- was paid. The Company Petition was admitted on 02.02.2018, and liquidation was ordered on 01.03.2021. The Liquidator issued an e-auction notice on 15.11.2021. The Appellant was declared the highest bidder for property at Item No. 5, having deposited Rs. 6.39 Crores on 16.11.2021. The Liquidator issued a letter of intent on the same date, requiring the

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## Facts

ASJ Finsolutions Pvt. Ltd. participated in an e-auction conducted by the Liquidator of Best Foods Ltd. and emerged as the highest bidder for property Item No. 5, depositing Rs. 6.39 Crores on 16.11.2021. The e-auction notice, dated 25.10.2021, required the Appellant to pay a balance of Rs. 19,17,00,000/-. The Liquidator issued a letter of intent on 16.11.2021, stipulating a 30-day deposit period, extendable to 90 days with interest. The Appellant failed to deposit the balance amount, citing a pending Writ Petition in the Punjab and Haryana High Court concerning the property's title, decided on 02.02.2022, and the non-disclosure of the original sale deed. The e-auction notice included details of the property and a note mentioning ongoing litigation, including Suit no.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in rejecting the Appellant's application for directions to …

**Ratio:** The principle is that a successful bidder in an auction is obligated to comply with the

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**Reasoning:** The court reasoned that the Appellant, being a successful bidder, was bound by the terms

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**Interpretation:** This issue involves interpreting the obligations of a successful bidder in an

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**Application:** The ratio and reasoning apply to the specific facts because the Appellant

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** ASJ Finsolutions…
- **Respondents:** Best Food…
- **Advocates:** Sadiqua…; Aamir Zafa…; +7 more

## Timeline

- **2018-02-02 — Company Petition…**: The Company Petition was admitted…
- **2021-03-01 — Liquidation Ord…**: Order of Liquidation was passed…

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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/asj-finsolutions-pvt-ltd-vs-best-foods-ltd-through-liquidator-ors-company-appeal-8e0ec591