# 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-04126. This 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-04126
- **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-2019-55a25e45

## Summary

### Background

This 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.

## Facts

Falcon Consultancy Pvt. Ltd. (In Liquidation) is the corporate debtor. Bindu Enterprises Pvt. Ltd., the applicant, was an unsuccessful bidder in an auction conducted by the liquidator, Sonu Jain, for the sale of the corporate debtor's assets. The auction pertained to Lot No.3 mentioned in the tender document dated 25.03.2021. The last date for EMD submission was initially 28.03.2021, a Sunday, with 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. The applicant alleged that the liquidator favored the successful bidder by extending the EMD submission deadline and accepting the EMD on 30.03.2021, in violation of the tender document. The successful bidder provided bank

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## Issues and analysis

### Issue 1: Whether the liquidator improperly extended the deadline for submitting the Earnest Money Deposit …

**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 extension of the EMD deadline

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**Interpretation:** The interpretation is that while extending deadlines can be problematic, the

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**Application:** In this case, the successful bidder's EMD deposit before the original deadline

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## Parties

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

## Timeline

- **2021-03-20 — Liquidator Pub…**: The Liquidator effected publication for sale of four items of immoveable properties of…
- **2021-03-25 — Tender Docume…**: The liquidator issued the tender document with regard to E-Auction for sale of 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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