In Brief
A shareholder of a company in liquidation challenged an e-auction of company property by the Liquidator, seeking to set aside the sale and declare the sale certificate void. The Auction Purchaser won the bid but delayed depositing the balance amount beyond the 90-day deadline due to the Covid-19 lockdown and Income Tax attachment on the property. The Supreme Court held that while the 90-day payment timeline under IBBI Regulations is normally mandatory, the extraordinary circumstances of the Covid-19 pandemic and the Supreme Court's order extending limitation periods entitled the Auction Purchaser to relief. The Court declined to cancel the sale given substantial investments made and the appellant's dilatory conduct, instead directing the Auction Purchaser to deposit an additional 50% of the differential amount between the valuers' estimate and the reserve price, with interest at 9% per annum.
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