Mr. S.S. Chockalingam Vs. Mr. CA Mahalingam Suresh Kumar (MA/661/2018 in TCP/431/2017) - Synopsis
Team SoOLEGAL 18 Mar 2021
In this case, Mr. S.S. Chockalingam Vs. Mr. CA Mahalingam Suresh Kumar (MA/661/2018 in TCP/431/2017),  the applicant had participated in the e-auction held on October 26, 2018 and was declared the effective bidder, who offered the highest bid amount and also a selling letter had been released in the applicant's favor. The applicant was instructed to deposit 25% of the total bid sum within 24 hours and the remainder within 15 days. Applicant paid 25% of the bid amount on the third day and then requested an extension of time, which the respondent, the liquidator, granted twice for payment of the remaining 75% of the bid amount, but the applicant was unable to meet the deadline. As a result, the liquidator had cancelled the planned sale and negotiated with the second-highest bidder, who paid the bid price in one shot on December 13, 2018, and the equipment was sold to the second-highest bidder. The applicant had claimed that the procedure initiated by the liquidator to cancel the proposed sale and continue to negotiate with the second bidder was illegal and that he had no authority to forfeit the sum he paid as part of the highest bid amount.

According to the Adjudicating Authority, there is no provision in the Insolvency Bankruptcy Code, 2016 that allows for a time extension in the bidding phase. Furthermore, the liquidator negotiated with the second bidder, who had already made payment equal to the amount provided by the claimant, who was the top bidder. As a result, the applicant's application is infructuous and has been rejected.

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