Regulation 27

(1) The bankruptcy trustee shall ordinarily sell the assets of the bankrupt through an auction as specified in Part A of Schedule II. (2) The bankruptcy trustee may sell the assets by private sale, in the manner specified in Part B of Schedule II if- (a) the asset is perishable in nature; (b) the value of the asset is likely to deteriorate significantly if the sale is delayed; or (c) the selling price of the asset is higher than the reserve price of a failed auction. (3) The following persons shall not purchase or acquire any interest in the property of bankrupt, directly or indirectly, without permission of the Adjudicating Authority– 9 Substituted by Notification No. IBBI/2026-27/GN/REG150, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as, “Form B”.

(a) the bankruptcy trustee or any partner or director of the insolvency professional entity of which the bankruptcy trustee is a partner or director; (b) any professional appointed by the bankruptcy trustee for the bankruptcy process; (c) any creditor or associate of the bankrupt; and (d) any company where the bankrupt or a creditor is a promoter or director. (4) The bankruptcy trustee shall not proceed with a sale, if he has reason to believe that there is any collusion amongst any one or more of the following persons: - (a) the buyers; (b) the bankrupt; (c) the creditors; (d) associates of the bankrupt or creditors; (e) the corporate debtor; or (f) related party of the corporate debtor, and shall submit a report to the Adjudicating Authority for appropriate orders.