# In the matter of Nag Yang Shoes Pvt. Ltd. MA-661-2018 In TCP-431-2017

> NCLT judgment dated 2018-12-18. Citation: TCN-2018-NCLT-00050. The case involves a Miscellaneous Application (MA/661/2018) filed in TCP/431/IB/CB/2017 by the…

- **Court:** NCLT
- **Order date:** 18 Dec 2018
- **Citation:** TCN-2018-NCLT-00050
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nag-yang-shoes-pvt-ltd-ma-661-2018-in-tcp-431-2017-63c66559

## Summary

### Background

The case involves a Miscellaneous Application (MA/661/2018) filed in TCP/431/IB/CB/2017 by the Applicant, S.S.Chockalingam, under Rule 11 of the National Company Law Tribunal Rules, 2016. The Applicant sought an order directing the Liquidator to extend the last date of payment for an e-auction bid in three tranches. The Applicant had submitted an e-auction Tender Form on 24.10.2018 and was declared the successful bidder. However, the Applicant sought extensions for payment of the remaining 75% of the bid amount after paying 25%.

## Facts

S.S.Chockalingam (Applicant) participated in an e-auction and was declared the successful bidder. The Applicant submitted the e-auction Tender Form on 2018-10-24. The auction was to be held on 2018-10-26. The Applicant was required to deposit 25% of the total bid amount within 24 hours and the remaining 75% within 15 days. The Applicant paid 25% of the bid amount on 2018-10-29. The Applicant sought an extension of time for the remaining payments, which was granted twice by the Liquidator. Despite the extensions, the Applicant failed to adhere to the payment timeline. The Liquidator then cancelled the proposed sale and negotiated with the second-highest bidder, who paid the full bid amount on 2018-12-13. The machinery was sold to the second-highest bidder. The Applicant

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## Issues and analysis

### Issue 1: Whether the Applicant is entitled to an extension of time for making payments of the remaining 75% …

**Ratio:** The terms and conditions of the bidding process govern the timeline for payments. The

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**Reasoning:** The court found that the Applicant's request for an extension was not in line with the

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**Interpretation:** The I&B Code and related regulations emphasize the timely completion of the

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**Application:** The Applicant's failure to adhere to the payment timeline, despite being

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** S.S.Chocka…
- **Respondents:** Nag Yang Shoes…; CA Mahalingam…
- **Advocates:** Ashish Jain…; A.G. Sathyanarayan…

## Timeline

- **2018-10-24 — E-auction Tender Form…**: Applicant submitted the…
- **2018-10-26 — E-auction…**: Date of the e-…

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