ORDER

1. The present application has been filed on behalf of the M/s BRS Refiners (hereinafter Applicant) under section 60(5) of the Insolvency and Bankruptcy Code, 2016 r/w Rule 11 of the NCLT Rules, 2016. The Applicant is being aggrieved by the actions of the Respondent and is seeking direction to restrain the Respondent from forfeiting EMD amount of Rs. 96,00,000/- pursuant to E-Auction of Block A of assets of JVL Agro Industries Limited. Further, seeking directions to the Respondent to refund the EMD amount of Rs. 96,00,000/- along with compensation/damages caused to the applicant due to non- issuance of sale certificate.

2. The Applicant is a partnership firm who is engaged in the business of edibles oils and trading of such allied goods, having registered office at S.Y No. 190/1A, 190/1E, 190/3, Annaram, Village Farooqnagar Mandal, Mahoobnagar, District Telangana-509228.

3. The brief facts of the matters leading upto the present application are as follows:-

i. This Tribunal vide order dated 19.08.2020 ordered liquidation for the CD based on the report of the COC and appointed Mr. Supriyo Kumar Chaudhary as the Liquidator for carrying the liquidation process of the CD as per Liquidation Process Regulation, 2016.

ii. The liquidator issued a public Notice dated 04.03.2022 for sale of Stand-Alone assets of the CD for E-Auction wherein it was mentioned that last date of EOI was 22.03.2022 and last date of submission of EMD was 04.04.2022, last date for inspection by interested party was 21.03.2022 and Date of Auction was fixed as 06.04.2022 from 11:00 am to 01:00 pm.

iii. The Respondent vide an email dated 07.4.2022 announced the applicant as the successful bidder with highest bid of Rs. 12,60,00,000/- and Letter Of Intent dated 06.04.2022 was issued to the Applicant along with bank details to provide the balance amount.

iv. Applicant vide letters dated 08.4.2022 and 11.4.2022 sought information regarding loading of materials and confirmation of issuance of sale certificate for making the payment of remaining balance.

v. Respondent vide an email dated 12.04.2022 informed the applicant about the order dated 04.04.2022 passed by this Hon’ble Tribunal in I.A No. 98/ALD/2022 wherein it was held as under :-

“The Liquidator directed to file reply affidavit in the matter within TEN days from today. Copies of the same be served on the counsel on record for the applicant.

List this matter on 26th April, 2022.

In the meantime, auction sale to proceed as planned. However, the same shall be subject to outcome of this IA. Further, the liquidator shall not proceed to issue sale certificate without prior approval of this Adjudicating Authority.”

vi. Applicant vide letters dated 12.04.2022 and 13.04.2022 assured the respondent that balance will be credited in his account within the period of seven days of approval of Hon’ble NCLT for issuance of sales certificate.

vii. Respondent vide an email dated 08.06.2022 demanded outstanding balance along with interest 12% p.a of Rs. 12,40,01,128.77/- within the period of 90 days from the date of LOI.

viii. Applicant vide letter dated 22.06.2022 requested the Respondent to cancel the E-Auction and refund the EMD amount deposited by him along with damages. In furtherance of this Applicant vide letters dated 23.06.2022 and 28.06.2022 informed the Respondent that due to non-supply of oil within the time frame applicant has incurred a huge loss in delivering the oil to other suppliers on time. Moreover, the quality of oil has also depreciated which cannot be accepted.

ix. In view of the aforesaid circumstances, the liquidator vide an email dated 28.06.2022 informed the applicant to deposit the outstanding balance of sale consideration on or before 05.07.2022 along with interest of Rs. 20,28,230/-

x. It is stated that the Applicant being the trader of edible oils auctioned edible oil booked consignment for sale of auctioned edible oil of the Corporate Debtor with another supplier, namely M/s Sinotrach Oils. However, due to