# 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-00589. 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-00589
- **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-f6affa61

## 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 the chain documents of a property sold to the Appellant through an e-auction process. The e-auction was initiated vide 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, where the Appellant was declared the highest bidder for property at Item No.5, having deposited Rs.6.39 Crores on 16.11.2021. The balance amount was to be deposited within 30 days, but 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 a property listed as Item No. 5. The e-auction notice was dated 25.10.2021. The Appellant deposited Rs. 6.39 Crores on 16.11.2021, as part of the bid. The balance amount of Rs. 19,17,00,000/- was to be paid within 30 days, as per the letter of intent issued on 16.11.2021. The Appellant failed to deposit the balance amount, citing a Writ Petition filed in the Punjab and Haryana High Court and a suit regarding the property's title. The Appellant claimed that the original sale deed had not been shown to them. The Liquidator contended that the e-auction notice contained details of the litigation and that the sale was on an 'as is

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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 timeline for depositing the balance amount in an e-auction sale is statutory, as per

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**Reasoning:** The NCLAT reasoned that the Appellant failed to deposit the balance amount within the

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**Interpretation:** The legal issue revolves around the interpretation of the Liquidation

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

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** ASJ Finsolutions…
- **Respondents:** Best Food…

## 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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