Liquidator under IBC cannot cancel auction on expectation of higher bids: Supreme Court

It is not open to the liquidator to act on third-party communication and cancel the auction unless it is found that fraud or collusion has vitiated the process, the Court added.
Justice BV Nagarathna and Justice Ujjal Bhuyan
Justice BV Nagarathna and Justice Ujjal Bhuyan

The Supreme Court on Wednesday held that a liquidator who is part of the corporate insolvency and resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC) cannot cancel an auction merely on the expectation that a higher price may be bid for the sale of assets. [Eva Agro Feeds Private Limited v. Punjab National Bank and anr]

Loading content, please wait...
Bar and Bench - Indian Legal news