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Judgment
O R D E R
30.07.2024: Heard learned counsel for the Appellant and learned counsel appearing for the Bankruptcy Trustee. This Appeal has been filed against order dated 04.07.2024 by which order the Adjudicating Authority has allowed the IA No.4421 of 2024 filed by Union Bank of India for setting aside the e-auction dated 27.06.2023.
Bankruptcy process was initiated against the Appellant in pursuance of petition filed by the Appellant under Section 121 r/w Section 122 of the Insolvency and Bankruptcy Code, 2016. Bank had filed a claim and thereafter auction of the property situated at First Floor 117, Uday Park, New Delhi took place. Application was filed by Union Bank of India praying for setting aside auction sale. The Adjudicating Authority after hearing the parties have allowed the application, setting aside the e-auction and directed the Bankruptcy Trustee to conduct a fresh auction. Direction in Para 22 is as follows:
“22.Accordingly, the IA-4421/2023 is allowed by setting aside the e-auction dated 27.06.2023 conducted by the bankruptcy trustee by directing the bankruptcy trustee to conduct a fresh auction by maintaining at least 30 days’ time between the paper publication and the e-auction so as to enable more bidders to participate in the auction for fetching high value of the property. The bankruptcy trustee shall also clearly mention the timings for the inspection of the property in the paper publication.”
Learned counsel for the Appellant challenging the order submits that as far as Appellant is concerned Appellant has no issue with regard to re-auction of the asset, however, the re-auction be conducted by some other authority. Appellant’s case is that although one year period has elapsed from initiation of the bankruptcy process but no application under Section 38(1)(a) has been filed by the Bankruptcy Trustee.
Learned counsel appearing for the Bankruptcy Trustee submits that the issue regarding filing of application under Section 38(1)(a) of the Code has to be agitated before the Adjudicating Authority by the Appellant, if any and said issue is not the subject matter of the present appeal.
In view of the aforesaid, we are of the view that in so far as present appeal, we do not find any ground to interfere with the order directing for re-auction of the property. We, however, give liberty to the Appellant to make appropriate application before the Adjudicating Authority for raising the issue of discharge of Appellant.
Learned counsel for the Appellant submits that although Appellant has no issue with regard to re-auction but the re-auction should be held by some other authority and he may be discharged in the meanwhile. We are unable to accept the submission of the Appellant that re-auction should be held by some other authority. It is the Bankruptcy Trustee who has to hold the auction as directed by the Adjudicating Authority. Appeal is disposed of accordingly.