Successful bidders in judicial sales under the Insolvency and Bankruptcy Code must adhere to auction terms; post-sale reliefs and liabilities cannot be claimed if not specified, upholding the ‘as is where is’ principle.

ORDER

[PER: BENCH]

The present Interlocutory Application bearing no. IA(IBC)/41/2025 (hereinafter referred to as the “IA”) has been filed on 12.12.2024 (vide Diary No. 1774) by Dr. Kondapalli Venkat Srinivas, Liquidator of M/s. Veda Biofuel Limited (hereinafter referred to as the “Applicant” or “Liquidator”), under section 35 read with section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the “IBC” or the “Code”), read with Regulations 32A, 33, and 42(2) of the IBBI (Liquidation Process) Regulations, 2016 (hereinafter referred to as the “Liquidation Regulations”), and Rule 11 of the National Company Law Tribunal Rules, 2016 (hereinafter referred to as the “NCLT Rules”) with the following prayers:

(i) To allow the instant IA reporting completion of sale of the Corporate Debtor as a going concern in accordance with the provisions of Regulation 33(1) in the manner specified in Schedule 1 of Liquidation Regulations to the M/s Biotech Private Limited & Ors. (hereinafter referred to as the “Respondent” or “Successful Bidder” in accordance with the terms enshrined in the Process Document dated 21.08.2024 on an “as is where is” “as is what is” “as is how is” “whatever there is” and “no recourse basis”; having received the entire consideration as per the said Process Document together with interest;

(ii) Grant the reliefs and concessions, as sought by the Respondent i.e., M S Biotech & Ors as particularly detailed in Annexure 29 of the IA for the smooth transition of the Corporate Debtor.

(iii) Pass such other order(s), as it may deem fit and proper in the circumstances of the case and in the interest of justice.

FACTS OF THE CASE:

2. The facts of the case, as stated in the IA, are summarized below:

(i) This Adjudicating Authority, vide its order dated 26.05.2020 (copy enclosed as Annexure 1 of the IA) in IA No. 98 of 21, passed liquidation order in M/s. Veda Biofuel Limited (hereinafter referred to as the "Corporate Debtor") under section 33(1) of the IBC and appointed Mr. Sisir Kumar Appikatta (hereinafter referred to as the "Erstwhile Liquidator") as the liquidator under section 34(1) of IBC.

(ii) The Erstwhile Liquidator issued a Public Notice dated 19.08.2020 (copy enclosed as Annexure 2 of the IA) calling for expression of interest (hereinafter referred to as the "EoI") from interested bidders for the sale of Corporate Debtor as a going concern.

(iii) Mr. Vijay Kumar Penmetsa, the promotor of the Corporate Debtor (hereinafter referred to as the “Promoter”) filed an appeal against the liquidation order vide Company Appeal (AT) (Insolvency) No. 757 of 2020 before the Hon’ble NCLAT, which vide its Order dated 07.09.2020 (copy enclosed as Annexure 3 of the IA), directed that "The auction notice shall remain stayed till the next date of hearing". The said interim order was extended from time to time since then.

(iv) Subsequently, on an application filed by Mr. Ramakrishna Indrakanti, an equity shareholder of the Corporate Debtor, vide IA No. 85 of 2021, this Adjudicating Authority, vide its Order dated 07.08.2021, held that the appointment of Mr. Sisir Kumar Appikatta as liquidator of the Corporate Debtor is non-est/ illegal and ab initio void and appointed the Applicant as liquidator in his place, vide its Order dated 03.09.2021 (copy enclosed as Annexure 4 (Colly.) of the IA).

(v) The Applicant appointed two registered valuers (copy enclosed as Annexure 5 (Colly.) of the IA) to determine the realisable value of the assets or businesses of Corporate Debtor under Clause (a) to (f) of Regulation 32 of the Liquidation Regulations.

(vi) In the meantime, this Adjudicating Authority, vide its Order dated 25.11.202