Case Note & Summary
The appeal was filed against an order dated 12.05.2026 by the National Company Law Tribunal, Mumbai, dismissing the appellant's application regarding the auction of aircrafts in the liquidation proceedings of Jet Airways. The appellant, Industrial Asset Transaction Services Pvt. Ltd., participated in the auction held on 29.03.2026 but claimed that they were not given adequate opportunity to inspect the aircraft engines, which hindered their bidding capacity. The liquidator had issued a sale process document stating that the sale was on an 'as is where is' basis and allowed inspection on 26.03.2025 and 27.03.2025. The appellant's bid of Rs.300 crore was outbid by the successful bidder's Rs.309 crore. Following the auction, the appellant sought to set aside the auction, arguing that they were ready to increase their bid by Rs.25 crore per aircraft after the inspection. The liquidator, however, stated that the auction process was final and that the Stakeholders Consultation Committee (SCC) did not permit further bidding. The adjudicating authority found no merit in the appellant's claims, confirming that the auction was transparent and that the liquidator acted within their discretion. The appeal was ultimately dismissed, affirming the auction's validity and the liquidator's actions.
Headnote
A) Insolvency Law - Auction Sale Validity - Auction Process and Inspection Rights - Insolvency and Bankruptcy Code, 2016 - The appellant contested the auction process claiming insufficient inspection opportunity, but the court upheld the liquidator's discretion and the auction's validity as per the established process. Held that the auction was conducted transparently and no error was found in the liquidator's actions (Paras 12-13).
Issue of Consideration
Whether the auction sale conducted by the liquidator was valid and whether the appellant was denied a fair opportunity to inspect the aircraft before bidding.
Final Decision
The appeal was dismissed, affirming the auction process and the liquidator's discretion in conducting the sale.
Law Points
- Liquidation process
- auction sale
- inspection rights
- transparency in bidding
- discretion of liquidator
