The case involves the liquidation of the Corporate Debtor's stock-in-trade. The stock was permitted to be sold by private auction after no bids were received in two public auctions. The liquidator believed a private sale was necessary due to the deteriorating value of the stock. A sum of Rs. 15 lakhs was received from the sale. Objections were raised by the ex-Directors and a Financial Creditor (Bank) regarding the sale. The Bank suggested the ex-Director could have arranged a better sale. The liquidator relied on email correspondence indicating an opportunity was given to arrange a settlement.
The Corporate Debtor's stock-in-trade was sold via private auction after two unsuccessful public auctions. The liquidator cited the deteriorating value of the stock as justification for the private sale. Rs. 15 lakhs was received from the sale. Ex-Directors and a Financial Creditor (Bank) raised objections. The Bank claimed the ex-Director could have arranged a better sale. The liquidator relied on email correspondence showing an opportunity for settlement was provided. During the moratorium period, stock-in-trade worth approximately Rs. 17 lakhs was disposed of by the ex-Director. Financial statements reflected scrap worth Rs. 1 crore, but its physical verification was lacking. The liquidator stated that the sale proceeds were insufficient to meet the liquidation
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The case involves the liquidation of the Corporate Debtor's stock-in-trade. The stock was permitted to be sold by private auction after no bids were received in two public auctions. The liquidator believed a private sale was necessary due to the deteriorating value of the stock. A sum of Rs. 15 lakhs was received from the sale. Objections were raised by the ex-Directors and a Financial Creditor (Bank) regarding the sale. The Bank suggested the ex-Director could have arranged a better sale. The liquidator relied on email correspondence indicating an opportunity was given to arrange a settlement.
The Corporate Debtor's stock-in-trade was sold via private auction after two unsuccessful public auctions. The liquidator cited the deteriorating value of the stock as justification for the private sale. Rs. 15 lakhs was received from the sale. Ex-Directors and a Financial Creditor (Bank) raised objections. The Bank claimed the ex-Director could have arranged a better sale. The liquidator relied on email correspondence showing an opportunity for settlement was provided. During the moratorium period, stock-in-trade worth approximately Rs. 17 lakhs was disposed of by the ex-Director. Financial statements reflected scrap worth Rs. 1 crore, but its physical verification was lacking. The liquidator stated that the sale proceeds were insufficient to meet the liquidation
…Liquidator g…
Hearing before the New…
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