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Judgment
This Appeal has been filed against the Order dated 21st November, 2023 in I.A. No. 5140 of 2023. The Interlocutory application was filed by the Appellant seeking a stay of auction proposed to be conducted on 16th November, 2023. The Adjudicating Authority rejected the Application by giving following reasons in paragraph 5 and 6:
“5. The Counsel for the Applicant submitted that pending disposal of said Miscellaneous Applications the liquidator of the Corporate Debtor is in the process of selling the assets which is the subject matter of the Slump Sale Agreement and the Miscellaneous Application. It has been brought to the notice of this Tribunal that the Liquidator has issued a Sale Notice dated 17.10.2023 for conducting e-auction of the said assets. The Learned Counsel appearing for the Liquidator confirmed the sale process but submitted that no EMD has been received and hence e-auction will not take place on 21.11.2023. The Learned Counsel for the Liquidator further submitted that the e-auction notice clearly stated that the e-auction shall be subject to the litigation pending before this Tribunal.
It is observed that the assets are in the nature of land, building, and plant and machinery situate therein, and no reason has been shown for sale of the said assets before disposal of the pending Miscellaneous Applications. Sale of assets, subject to pending litigation would only create further complexity of litigations and the third-party rights in respect of the assets. It is pertinent to observe further that the Hon'ble NCLAT, while disposing of the appeals directed the parties to maintain status-quo till the application is decided by the Tribunal.”
Learned Counsel for the Appellant submits that applications are still pending and have not been disposed of.
Learned Counsel for the Respondent submits that there is already status qua order of the Adjudicating Authority and no auction could have been taken.
Be that as it may, the reasons given in para 6 by the Adjudicating Authority were sufficient for rejecting the application. The Adjudicating Authority has already noticed the order of status qua in para 6 of the Order, we failed to see the anxiety of the Appellant to sell the assets when the Applications are still pending and direction has already been issued to maintain the status qua.
We do not find any merit in the Appeal, the Appeal is dismissed.