# In the matter of Anjali Waterford ospitality and Infra Limited

> NCLT judgment dated 2023-09-07. Citation: TCN-2023-NCLT-01752. Deattis Projects Private Limited, the successful bidder in an e-auction conducted by the…

- **Court:** NCLT
- **Order date:** 7 Sept 2023
- **Citation:** TCN-2023-NCLT-01752
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/anjali-waterford-ospitality-and-infra-limited-8ffe2887

## Summary

### Background

Deattis Projects Private Limited, the successful bidder in an e-auction conducted by the liquidator for Anjali Waterford Hospitality & Infra Pvt Ltd, filed an application (IA 770/2023) seeking the cancellation of the e-auction and refund of the earnest money deposit (EMD) of Rs. 28,00,000. The applicant claimed that the assets put up for sale did not have a clear marketable title. The corporate debtor, Anjali Waterford Hospitality & Infra Pvt Ltd, was put into liquidation on 2022-05-13. The applicant participated in the e-auction conducted by the erstwhile liquidator and was declared the successful bidder. The liquidator issued a Letter of Intent (LOI) to the applicant. The applicant later claimed that the assets were acquired by the Corporate Debtor under the

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## Facts

M/s Deattis Projects Private Limited, the successful bidder in an e-auction for the Corporate Debtor M/s Anjali Waterford Hospitality & Infra Pvt Ltd, filed IA No. 770/2023 seeking cancellation of the e-auction and refund of the EMD of Rs. 28,00,000. The Corporate Debtor was put into liquidation on 2022-05-13. The e-auction was conducted by the erstwhile liquidator with a reserve price of Rs. 280.00 Lakhs under 'AS IS WHERE IS' condition. The property put up for auction was Residential/Commercial land admeasuring 978.66 Sq. Yards. The applicant bid for the property and LOI was issued on 2023-02-06. The last date for payment of the remaining bid amount was 2023-05-02. The applicant claimed the asset for sale does not have clear marketable title. The applicant

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## Issues and analysis

### Issue 1: Whether the application filed by the successful bidder for cancellation of the e-auction and refund …

**Ratio:** The principle of 'caveat emptor' applies in auctions conducted on an 'AS IS WHERE IS'

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**Reasoning:** The court reasoned that the applicant participated in the auction knowing the terms and

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**Interpretation:** The 'AS IS WHERE IS' clause implies that the property is being sold in its

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**Application:** The court applied the 'caveat emptor' principle to the facts of the case,

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** M/s Deattis…
- **Respondents:** M/s Anjali…; Govada Venkata…

## Timeline

- **2022-05-13 — Corporate Debtor put…**: M/s Anjali Waterford Hospitality & Infra Pvt Ltd…
- **2023-01-17 — Sale Notice…**: The liquidator issued a sale notice for the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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