The NCLAT held that the Auction Purchaser cannot claim the interest on the sale consideration for the delay in issuing the Sale Certificate.
The National Company Law Appellate Tribunal (NCLAT), Principal Bench of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) was hearing an appeal and held that despite the Appellant's demand for interest on the sale consideration amount, the Liquidator cannot be held liable for the delay in issuing the Sale Certificate, which was primarily due to the restraint order of the Adjudicating Authority. Therefore, the demand for interest was deemed unwarranted, leading to the dismissal of the appeal.
In a recent judgment by the National Company Law Appellate Tribunal (NCLAT), Interlocutory Application No. 3688 of 2023 was considered, wherein the Appellant sought condonation of a 13-day delay in filing their Appeal. The Tribunal, after finding sufficient cause shown, condoned the delay and disposed of IA No. 3688 of 2023 accordingly.
Following this, in Company Appeal (AT) (Insolvency) No. 1070 of 2023, filed by the Successful Bidder against an order issued by the National Company Law Tribunal (NCLT), certain key facts were highlighted. The appeal contested the order dated 01.06.2023, which didn't grant the relief sought in IA No. 394 of 2022 and didn't direct the Respondent to pay the requested interest.
This case revolves around the Corporate Insolvency Resolution Process (CIRP) against JVL Agro Industries Ltd., initiated by Standard Chartered Bank. Despite various legal proceedings and appeals, including challenges against liquidation orders, issues arose regarding the issuance of Sale Certificates and the payment of interest on the sale consideration amount deposited by the Appellant.
The Appellant argued that the Adjudicating Authority erred in not granting relief as requested in IA No. 394 of 2022, particularly regarding the interest on the sale consideration amount. Conversely, the Liquidator maintained that it diligently pursued the proceedings and adhered to the orders of the Adjudicating Authority.
Upon reviewing the sequence of events and considering the arguments presented by both parties, the NCLAT found no justification to grant the relief sought by the Appellant. It noted the efforts made by the Liquidator and the conditions imposed by the Adjudicating Authority regarding the issuance of Sale Certificates.
Ultimately, the NCLAT dismissed the appeal, upholding the decision of the Adjudicating Authority. The judgment reflects a thorough consideration of the facts and legal provisions involved in the case. Despite the Appellant's demand for interest, the Tribunal concluded that the Liquidator acted within the confines of the orders and regulations, thus deeming the demand unwarranted. No costs were awarded in the matter.
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