Case Note & Summary
The appeal arose from an order of the Adjudicating Authority dismissing the Appellant's application regarding the auction process of Moser Baer Solar Ltd. initiated under the Insolvency and Bankruptcy Code, 2016. The Liquidation proceedings commenced on 30.05.2019, with the Appellant participating in the auction process by submitting bids and EMD. However, the Appellant claimed they were unable to participate in the auction held on 08.04.2025 due to a technical glitch preventing access to the pre-qualification link. The Adjudicating Authority found that the Appellant had abandoned the auction process and failed to meet the necessary requirements for participation. The Appellant's subsequent offer of Rs. 35 Cr. was made after the auction concluded, which the Liquidator did not consider. The Appellant argued that the auction process was flawed and sought a fresh auction, citing precedents supporting their claims. The Respondents contended that the auction was conducted fairly and transparently, and the Appellant's failure to participate was due to their own negligence. The Tribunal ultimately upheld the Adjudicating Authority's decision, emphasizing the importance of adhering to the auction process and the need for timely participation. The appeal was dismissed, and a fine was imposed on the Appellant for pursuing erroneous litigation.
Headnote
A) Insolvency Law - Auction Process - Validity of Auction - Insolvency and Bankruptcy Code, 2016, Section 61 - The Appellant contended that they were excluded from the auction due to a technical glitch in the e-auction platform. The Adjudicating Authority held that the Appellant failed to demonstrate their inclination to participate and attributed the failure to their own faults, thus rejecting the plea for a fresh auction. Held that the auction process was valid and the Appellant's claims were unfounded (Paras 20-21).
Issue of Consideration
Whether the Adjudicating Authority was correct in concluding that the Appellant had abandoned the e-auction process and whether the technical glitch alleged by the Appellant justified a fresh auction.
Final Decision
The Tribunal upheld the Adjudicating Authority's decision, dismissing the appeal and imposing a fine of Rs. 1.5 lakhs on the Appellant for pursuing erroneous litigation.
Law Points
- Insolvency and Bankruptcy Code
- auction process
- technical glitch
- eligibility criteria
- fair participation
