Fact Personnel Private Limited vs Brijendra Kumar Mishra In His Capacity ...
- CitationCompany Appeal (AT) (Insolvency) No. 738 of 2022
Ratio decidendi
The rule this decision rests on
The EMD (earnest money deposit) lodged for an auction conducted under the insolvency process, which has been returned, does not carry interest in the absence of any clause in the auction notice providing for it, and no direction for interest can be issued on such a deposit.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Fact Personnel Pvt. Ltd. ...Appellant
Versus
Brijendra Kumar Mishra & Anr. ...Respondents
Present: For Appellant: Ms. Meghna Rao, Advocate.
For Respondents: Ms. Kritika Bhardwaj and Mr. Aayush Agarwala, Advocates for R-1. Mr. Ashish Rana, Advocate for R-2.
ORDER
06.09.2022: Heard learned counsel for the Appellant as well as learned
counsel appearing for the Respondents. This Appeal has been filed against
the order passed by the Adjudicating Authority dated 06.06.2022 by which
order the Adjudicating Authority has directed for fresh auction of the subject
property. Appellant was the highest bidder in the earlier auction and filed
appeal aggrieved of the direction of the Adjudicating Authority for fresh
auction.
2. This Tribunal while hearing the Appeal on 08.07.2022 directed that
fresh auction may take place and further Appellant was also permitted to
participate in the auction after getting adjustment of its EMD already
deposited for first auction.
3. It is submitted by the parties that in pursuance of the order of the
Adjudicating Authority, fresh auction has taken place on 14.07.2022 for the
Cont'd.../ 2
reserve price of 12 crore, in which Appellant could not succeed. The bid of
the Successful Bidder has already been approved.
4. Learned counsel for the Appellant submits that Respondent be directed
to pay some interest on the EMD amount which was lying with the Liquidator.
5. Learned counsel for the Liquidator submits that the EMD amount was
lying in a normal Bank Account and did not earn any interest. It is further
submitted in the auction notice there was no clause regarding interest on the
EMD. We are of the view that no direction for interest can be issued for the
EMD which has already been returned.
6. In view of the above, we seen no reason to entertain this Appeal. Appeal
is dismissed.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical) Archana/nn
Company Appeal (AT) (Insolvency) No. 738 of 2022
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