The case involves an application regarding the forfeiture of earnest money deposited by Lucky Holdings Pvt. Ltd. (the applicant) in an e-auction for the sale of the corporate debtor, ESS DEE Aluminium Limited, which was under liquidation. The liquidator sought to forfeit the EMD after Lucky Holdings was unable to pay the first installment due to an intervening application filed by Trailblazer Edusol Private Limited challenging the e-auction. The applicant argued against the forfeiture, citing the absence of a concluded contract and the liquidator's undertaking not to proceed with the sale during the pendency of the challenge.
On 14/02/2020, the application filed by the financial creditor under section 7 of the Insolvency and Bankruptcy Code, 2016 was admitted and Corporate Insolvency Resolution Process in respect of the corporate debtor commenced. On 08/10/2021, the Adjudicating Authority ordered the liquidation of the corporate debtor and appointed the respondent as the Liquidator. On 16/03/2022, a newspaper publication announced the sale of ESS DEE Aluminium Limited's assets, scheduled for 07/04/2022, but this was later cancelled. A subsequent sale notice was published on 05/04/2022 for an e-auction on 16/04/2022. Lucky Holdings Private Limited submitted an EMD of Rs. 2 crores for the e-auction. On 16/04/2022, the liquidator informed bidders of an incorrect bid, rescheduling the auction
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Application filed by financial creditor…
Adjudicating Authority ordered liquidation of…
The case involves an application regarding the forfeiture of earnest money deposited by Lucky Holdings Pvt. Ltd. (the applicant) in an e-auction for the sale of the corporate debtor, ESS DEE Aluminium Limited, which was under liquidation. The liquidator sought to forfeit the EMD after Lucky Holdings was unable to pay the first installment due to an intervening application filed by Trailblazer Edusol Private Limited challenging the e-auction. The applicant argued against the forfeiture, citing the absence of a concluded contract and the liquidator's undertaking not to proceed with the sale during the pendency of the challenge.
On 14/02/2020, the application filed by the financial creditor under section 7 of the Insolvency and Bankruptcy Code, 2016 was admitted and Corporate Insolvency Resolution Process in respect of the corporate debtor commenced. On 08/10/2021, the Adjudicating Authority ordered the liquidation of the corporate debtor and appointed the respondent as the Liquidator. On 16/03/2022, a newspaper publication announced the sale of ESS DEE Aluminium Limited's assets, scheduled for 07/04/2022, but this was later cancelled. A subsequent sale notice was published on 05/04/2022 for an e-auction on 16/04/2022. Lucky Holdings Private Limited submitted an EMD of Rs. 2 crores for the e-auction. On 16/04/2022, the liquidator informed bidders of an incorrect bid, rescheduling the auction
…Application filed by financial creditor…
Adjudicating Authority ordered liquidation of…