An auction participant must conduct due diligence and cannot contest auction terms after participating, as liability to verify title lies with the bidder.

J U D G M E N T

1. The present Interlocutory Application, being I.A. No. 337/MP/2023, has been filed by M/s Windsor Infra (hereinafter referred to as"Applicant/Highest Bidder"), represented through its Partner Mr. Balvinder Pal Singh, under Section 60 (5) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as"the Code") read with Rule 11 of the National Company Law Tribunal Rules, 2016, seeking appropriate directions against Shri Shikhar Chand Jain, the Liquidator of M/s Power Televentures Private Limited (hereinafter referred to as "Respondent/Liquidator"), which are as under:

(i) Direct the Liquidator to refund Rs. 26,00,000/- back to the Applicant;

(ii) Direct the Liquidator to pay interest @24% per annum compounded annually on Rs. 26,00,000/- from 02.06.2023 till the date of refund;

(iii) Set aside the E-Auction process conducted vide newspaper publication dated 08.04.2023 for being illegal; and

(iv) Set aside the E-Auction process conducted vide newspaper publication dated 10.09.2023 for being illegal.

2. It is an admitted position on record that this Hon'ble Adjudicating Authority admitted the main petition under Section 7 of the Code and initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor vide order dated 17.09.2020. Subsequently, upon the failure of the resolution process, this Tribunal passed an order of liquidation on 18.11.2021 and appointed Mr. Shikhar Chand Jain as the Liquidator.

3. Pursuant to the liquidation order, the Respondent/Liquidator initiated the process for realization of the assets. The 3rd e-auction of the Corporate Debtor's subject land (Survey No. 7, 8/22/3/1 in Gram Ahmadpur Kala, Patwari Halka No. 20, Tehsil Huzur, District Bhopal-462043 (M.P.)) was conducted on 08.05.2023.

4. Before proceeding to examine the rival contentions on merits, this Tribunal notes that the following foundational facts stand established and are not in dispute between the parties on the basis of the pleadings and documents on record:

(i) That the Corporate Debtor was admitted into CIRP vide order dated 17.09.2020, and the Liquidation order was subsequently passed on 18.11.2021.

(ii) That during the liquidation process, the subject property was proposed to be auctioned, and the 3rd e-auction was initiated and conducted on 08.05.2023.

(iii) That the Applicant participated in the said e-auction and was declared the Highest Bidder (H1) for a total sale consideration of Rs. 1,04,00,000/-.

(iv) That the Applicant duly deposited an Earnest Money Deposit (EMD) of Rs. 5,00,000/- and a subsequent upfront payment of Rs. 21,00,000/-, totaling an amount of Rs. 26,00,000/- (representing 25% of the bid amount).

(v) That a Letter of Intent (LOI) was issued by the Respondent/Liquidator in favour of the Applicant on 09.05.2023.

(vi) That the remaining 75% of the bid amount was not deposited by the Applicant within the stipulated 90-day time frame, culminating in the Respondent/Liquidator forfeiting the deposited amount of Rs. 26,00,000/- on 14.08.2023.

Submissions by the Applicant/Highest Bidder:

1. The present Application has been filed by the Applicant/M/s Windsor Infra, a partnership firm represented through its Partner Mr. Balvinder Pal Singh who is Highest Bidder. The Applicant firm is engaged primarily in the business of real estate and allied activities and has been operating in the said sector for more than two decades.

2. Ld. Counsel for the Applicant submitted that the main petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 was admitted into CIRP by this Hon’ble Tribunal vide order dated 17.09.2020. Thereafter, in the 1st meeting of the CoC held on 27.10.2020, Mr. Shikhar Chand Jain was appointed as the RP of the Corporate Debtor. S