IA 1261 of 2021 was filed under Section 60(5) of the Insolvency and Bankruptcy Code, seeking an extension of time for the payment of approximately Rs. 18.23 crores, which represents the balance consideration for the purchase of the Corporate Debtor's assets on a slum sale basis. This sale was a result of an auction conducted by the official liquidator, as per a notice dated 20.02.2021. The applicant, declared the highest bidder on 23.03.2021, had deposited 10% of the total bid amount (approximately Rs. 2.02 crores) as earnest money on 12.03.2021. According to the tender's terms, the balance amount was to be deposited within 90 days, with a 12% per annum interest applicable after the first 30 days.
The Corporate Debtor's assets were put up for auction by the official liquidator. The applicant emerged as the highest bidder on 23.03.2021. The applicant had deposited 10% of the total bid amount (Rs. 2.02 crores) as earnest money on 12.03.2021. The balance amount of Rs. 18.23 crores was to be paid within 90 days as per the tender conditions, with a 12% interest applicable after the first 30 days. The applicant sought a 60-day extension to pay the remaining amount due to a family illness. The liquidator stated they lacked the power to extend the deadline under the IBC. The relevance of these facts lies in determining whether the applicant should be granted an extension to fulfill their payment obligations, considering the circumstances and the provisions of the IBC.
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Official liquidator…
The applicant deposited…
IA 1261 of 2021 was filed under Section 60(5) of the Insolvency and Bankruptcy Code, seeking an extension of time for the payment of approximately Rs. 18.23 crores, which represents the balance consideration for the purchase of the Corporate Debtor's assets on a slum sale basis. This sale was a result of an auction conducted by the official liquidator, as per a notice dated 20.02.2021. The applicant, declared the highest bidder on 23.03.2021, had deposited 10% of the total bid amount (approximately Rs. 2.02 crores) as earnest money on 12.03.2021. According to the tender's terms, the balance amount was to be deposited within 90 days, with a 12% per annum interest applicable after the first 30 days.
The Corporate Debtor's assets were put up for auction by the official liquidator. The applicant emerged as the highest bidder on 23.03.2021. The applicant had deposited 10% of the total bid amount (Rs. 2.02 crores) as earnest money on 12.03.2021. The balance amount of Rs. 18.23 crores was to be paid within 90 days as per the tender conditions, with a 12% interest applicable after the first 30 days. The applicant sought a 60-day extension to pay the remaining amount due to a family illness. The liquidator stated they lacked the power to extend the deadline under the IBC. The relevance of these facts lies in determining whether the applicant should be granted an extension to fulfill their payment obligations, considering the circumstances and the provisions of the IBC.
Official liquidator…
The applicant deposited…