# In the matter of Falcon Consultancy Pvt. Ltd. IA (IB) No.100-CB-2021 in TP (IB) No.112-CTB-2019

> NCLT judgment dated 2023-03-21. Citation: TCN-2023-NCLT-04106. The case involves an application filed under Section 60(5) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 Mar 2023
- **Citation:** TCN-2023-NCLT-04106
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/falcon-consultancy-pvt-ltd-ia-ib-no100-cb-2021-in-tp-ib-no112-ctb-2019-489bb6fa

## Summary

### Background

The case involves an application filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the NCLT Rules, 2016, by an unsuccessful bidder challenging the auction proceedings pertaining to Lot No.3 mentioned in the tender document dated 25.03.2021 and seeking to quash the auction proceeding held on 01.04.2021. The liquidator had initiated the sale of immoveable properties of Falcon Consultancy Private Limited, the corporate debtor, and the applicant alleges irregularities in the process, specifically regarding the extension of time for EMD submission to favor the successful bidder.

## Facts

Falcon Consultancy Pvt. Ltd. is undergoing liquidation. The liquidator initiated an auction for the sale of the company's immoveable properties. Bindu Enterprises Pvt. Ltd., the applicant, was an unsuccessful bidder in the auction. The tender document was dated 25.03.2021. The auction was held on 01.04.2021. The last date for EMD submission was initially 28.03.2021, a Sunday, with the next day, 29.03.2021, being a holiday. The liquidator extended the time for EMD submission until 30.03.2021. M/s Glamour was declared the successful bidder. Bindu Enterprises alleged that the liquidator extended the EMD submission deadline to favor M/s Glamour. Bindu Enterprises relied on the corporate debtor's bank statement to support their claim. M/s Glamour provided their bank

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## Issues and analysis

### Issue 1: Whether the liquidator improperly extended the time for submission of the EMD to favor the …

**Ratio:** The principle is that a liquidator must act fairly and transparently in the auction

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**Reasoning:** The court considered the applicant's allegation that the liquidator extended the EMD

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**Interpretation:** The interpretation of the tender document and the actions of the liquidator are

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**Application:** In this case, the successful bidder's bank statement showed that they complied

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## Parties

- **Judges:** Mohan…; Satya Ranjan…
- **Appellants:** Bindu Enterprises…
- **Respondents:** Falcon Consultancy…; Sonu…

## Timeline

- **2021-03-20 — Liquidator effected…**: Liquidator effected publication for sale of four items of immoveable properties of M/s…
- **2021-03-25 — Tender documen…**: Liquidator issued the tender document with regard to E-Auction for sale of the immoveable…

## 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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