Concluded Liquidation Auction cannot be reopened

The National Company Law Appellate Tribunal (NCLAT) held that a concluded liquidation auction cannot ordinarily be reopened merely because an unsuccessful or non-participating bidder subsequently offers a higher amount. 

While the Tribunal examined allegations of technical glitches on the BAANKNET auction platform and the overarching objective of value maximisation under the Insolvency and Bankruptcy Code, it ultimately reaffirmed the importance of certainty, finality and procedural discipline in liquidation sales. 

The decision provides important guidance on challenges to e-auctions conducted through the IBBI-mandated BAANKNET platform and the circumstances in which courts may interfere with completed liquidation auctions.