The court upheld the Liquidator's commercial wisdom and procedural integrity in asset assignment, dismissing the application for lack of fair treatment evidence.

ORDER

1) The present Application is filed by M/s Badrinath Commotrade Private Limited (hereinafter referred to as the “Applicant”) under Section 60 (5) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC”) read with Rule 11 of the National Company Law Tribunal Rules, 2016 (hereinafter referred to as “NCLT Rules”) and the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (hereinafter referred to as “ Liquidation Regulations ”) against the Liquidator of M/s Ind-Barath Thermal Power Limited (hereinafter referred to as the “Corporate Debtor”), inter alia seeking the following reliefs:

“1. Direct the Respondent/Liquidator to adopt a Swiss Challenge Mechanism or an equivalent transparent and competitive process for the assignment or transfer of the Not Readily Realisable Assets of the Corporate Debtor, in compliance with Regulation 37A of the IBBI (Liquidation Process) Regulations, 2016.

2. Direct the Respondent/Liquidator to provide the Applicant an opportunity to match or improve upon the competitive offer submitted by the successful bidder, ensuring transparency and fairness in the process.

3.Declare that the process conducted by the Respondent/Liquidator, including the declaration of the Applicant as an "Unsuccessful Bidder," is arbitrary, unfair, and in violation of the principles of transparency under the Insolvency and Bankruptcy Code, 2016 .

4. Pass such other or further orders as may be deemed fit and proper in the interests of justice and equity.”

2) Brief of averment in the application:

i) The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) vide order dated 31.12.2021 in CP (IB) No. 745/7/HDB/2019, and an Interim Resolution Professional was appointed. Thereafter, IA No. 1423/2022 vide order dated 31.03.2023 in the said company petition was allowed and liquidation of the Corporate Debtor was ordered, consequent to which the present Liquidator was appointed.

ii) Pursuant to commencement of the liquidation process, the Liquidator issued a public notice inviting Expression of Interest (EOI) for assignment or transfer of the Not Readily Realisable Assets (NRRA) of the Corporate Debtor. The Applicant, vide its EOI dated 05.08.2024, submitted the same along with an Earnest Money Deposit (EMD) of Rs. 5,00,000/-. The Applicant thereafter submitted its initial financial offer on 14.08.2024, enclosing detailed information and documents in accordance with the terms prescribed by the Liquidator.

iii) After evaluation and verification of the Applicant’s documents and offer, the Liquidator declared the Applicant as an “Eligible Investor” on 29.08.2024.

iv) To demonstrate continued interest and commitment to maximize value for stakeholders, the Applicant submitted a revised offer dated 24.09.2024, in compliance with the bidding process and with an intention to enhance the value realization from the NRRA.

v) However, vide email dated 28.10.2024, the Liquidator communicated that the Applicant was declared an “Unsuccessful Bidder.” It is contended that this decision was made without affording the Applicant a fair and reasonable opportunity to match or improve its offer.

vi) Aggrieved thereby, the Applicant sent an email dated 08.11.2024 requesting the Liquidator to grant a fair opportunity to match the successful bid and further requested that a Swiss Challenge Mechanism be adopted to ensure fairness and transparency in the bidding process.

vii) It is submitted that the process adopted by the Liquidator for the assignment of the NRRA fails to satisfy the requirements of fairness, transparency, and value maximization under Regulation 37A of