The case involves a dispute over the sale of shares of Alliance Broadband Services Private Limited, held by Manthan Broadband Services Private Limited, which is undergoing liquidation. The Liquidator sought to sell these shares through an e-auction. The suspended board of Manthan challenged the auction, claiming the shares were pledged to Alliance, the sale was undervalued, and the auction violated liquidation regulations. Several IAs were filed, including one by Kalyankari Texfab Private Limited, the highest bidder in the e-auction, seeking to intervene. The core issue revolves around whether the Liquidator can proceed with the sale of the shares, considering the claims of pledge, valuation, and compliance with liquidation regulations.
Manthan Broadband Services Private Limited was admitted into insolvency on 2019-09-18 and subsequently ordered into liquidation on 2022-04-06. Alliance Broadband Services Private Limited had extended a loan of Rs. 10.20 crores to Manthan, against which Manthan pledged 77,500 shares of Alliance. The Liquidator of Manthan initiated an e-auction to sell these shares. The suspended board of Manthan challenged the auction, arguing that the shares were pledged, the sale was undervalued, and the auction violated liquidation regulations. They claimed Alliance had not relinquished its security interest and the sale price was significantly below market value. The Liquidator contended that the pledge was no longer valid, Alliance had not complied with Regulation 21A of the
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Manthan Broadband Services Private Limited…
Order of liquidation was…
The case involves a dispute over the sale of shares of Alliance Broadband Services Private Limited, held by Manthan Broadband Services Private Limited, which is undergoing liquidation. The Liquidator sought to sell these shares through an e-auction. The suspended board of Manthan challenged the auction, claiming the shares were pledged to Alliance, the sale was undervalued, and the auction violated liquidation regulations. Several IAs were filed, including one by Kalyankari Texfab Private Limited, the highest bidder in the e-auction, seeking to intervene. The core issue revolves around whether the Liquidator can proceed with the sale of the shares, considering the claims of pledge, valuation, and compliance with liquidation regulations.
Manthan Broadband Services Private Limited was admitted into insolvency on 2019-09-18 and subsequently ordered into liquidation on 2022-04-06. Alliance Broadband Services Private Limited had extended a loan of Rs. 10.20 crores to Manthan, against which Manthan pledged 77,500 shares of Alliance. The Liquidator of Manthan initiated an e-auction to sell these shares. The suspended board of Manthan challenged the auction, arguing that the shares were pledged, the sale was undervalued, and the auction violated liquidation regulations. They claimed Alliance had not relinquished its security interest and the sale price was significantly below market value. The Liquidator contended that the pledge was no longer valid, Alliance had not complied with Regulation 21A of the
…Manthan Broadband Services Private Limited…
Order of liquidation was…