# In the matter of Mega Soft Infrastructure Private Limited I.A. 4687-ND-2022 in Company Petition No. (IB) – 260-(PB)-2017

> NCLT judgment dated 2023-05-09. Citation: TCN-2023-NCLT-03449. The case involves an application filed under Section 60(5) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 9 May 2023
- **Citation:** TCN-2023-NCLT-03449
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mega-soft-infrastructure-private-limited-ia-4687-nd-2022-in-company-petition-no-1bee3edf

## Summary

### Background

The case involves an application filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions against the respondents to transfer an auctioned property in favor of the applicant, Groovy Structures LLP, who was the highest bidder in an e-auction. The property in question is Institutional Plot No. 02/2, Sector-154, District Gautam Budh Nagar, Noida, Uttar Pradesh, which was originally leased to the Corporate Debtor, M/S. Mega Soft Infrastructure Private Limited. The CIRP of the Corporate Debtor was initiated, and subsequently, the company went into liquidation. The liquidator issued an e-auction sale notice, and Groovy Structures LLP emerged as the highest bidder. Despite the applicant paying the entire sale consideration, the transfer of the

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## Facts

Groovy Structures LLP (Applicant) participated in an e-auction for a property belonging to M/S. Mega Soft Infrastructure Private Limited (Corporate Debtor), which was under liquidation. The property is Institutional Plot No. 02/2, Sector-154, District Gautam Budh Nagar, Noida, Uttar Pradesh. The Applicant was declared the highest bidder with a bid of Rs. 8,66,00,000/-. The Liquidator accepted the bid and communicated it to the Applicant on 19.11.2019. The Tribunal allowed the sale on 03.02.2020. The Liquidator requested the Applicant to make the payment of Rs. 7,93,00,000/- towards the balance sale consideration. Due to the COVID-19 lockdown, the timeline for payment was extended. The Applicant faced financial difficulties and sought an extension of time for payment,

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## Issues and analysis

### Issue 1: Whether the Respondent No. 1 is obligated to transfer the auctioned property to the Applicant, …

**Ratio:** The principle of 'pari passu' is relevant in liquidation proceedings, ensuring equitable

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**Reasoning:** The court considered that the applicant was the highest bidder in the e-auction and had

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**Interpretation:** The legal issue involves interpreting the provisions of the Insolvency and

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**Application:** The ratio and reasoning apply to the specific facts of the case, where the

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## Parties

- **Judges:** SHRI. BACHU…; RAHUL BHA…
- **Respondents:** M/S. MEGA SOFT…; New Okhla…
- **Advocates:** Rahul G…; Deepti…

## Timeline

- **2016-07-01 — Applicant Inco…**: Groovy Structures LLP…
- **2008-03-28 — Plot Allo…**: Respondent No. 1 allotted plot No. 02/02…

## 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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