procedure of e auction
4 months ago
sir once the e auction begins for multiple assets under possession from one company or so,and completes succesfully bidding ,can bank deny the sale of few of the assets among many assets saying that they have received their required amount within first few assets.
A.Dear Client,
An auction sale is the sale of goods through a bidding process and is covered under the Sale of Goods Act, 1930. It is one of the most important Auction Sale rules that the seller must complete the sale once a bid has been accepted. In case, he is unable to do so for any reason, he must inform all potential buyers of this before the Auction commences and also refund their money. There is the minimum price at which the seller is willing to sell a particular item in an auction sale. If no bidder meets or exceeds this price, then the item goes unsold. Section 64 of the Sale of Goods Act, When the auction involves the sale of goods in different lots, each lot of goods are covered under a separate contract of sale. An auction sale is deemed to be complete when the auctioneer says so. The goods for sale at the auction may be subject to a reserve price or an upset price. The auctioneer cannot sell goods below this price. In the case of Punjab National Bank v. EVA Agro Feeds (P.) Ltd. - [2022], NCL-AT held that the auction bidder had not vested right to claim the auction in its favour in a liquidation sale. It was also clear that the terms of auction sale notice that provide absolute right to accept or reject any or all bids or adjourn the E-Auction or withdraw any asset or portion thereof from the E-Auction at any stage without assigning any reason thereof cannot be considered as in violation of the Schedule I of the Liquidation Process Regulations, 2016. So, in view of the above proposition of relevant law and rulings of he National Company Law Appellate Tribunal(NCLAT), Bank can withdraw few assets listed for e-auction sale that met the reserved price or for any other valid reason..
An auction sale is the sale of goods through a bidding process and is covered under the Sale of Goods Act, 1930. It is one of the most important Auction Sale rules that the seller must complete the sale once a bid has been accepted. In case, he is unable to do so for any reason, he must inform all potential buyers of this before the Auction commences and also refund their money. There is the minimum price at which the seller is willing to sell a particular item in an auction sale. If no bidder meets or exceeds this price, then the item goes unsold. Section 64 of the Sale of Goods Act, When the auction involves the sale of goods in different lots, each lot of goods are covered under a separate contract of sale. An auction sale is deemed to be complete when the auctioneer says so. The goods for sale at the auction may be subject to a reserve price or an upset price. The auctioneer cannot sell goods below this price. In the case of Punjab National Bank v. EVA Agro Feeds (P.) Ltd. - [2022], NCL-AT held that the auction bidder had not vested right to claim the auction in its favour in a liquidation sale. It was also clear that the terms of auction sale notice that provide absolute right to accept or reject any or all bids or adjourn the E-Auction or withdraw any asset or portion thereof from the E-Auction at any stage without assigning any reason thereof cannot be considered as in violation of the Schedule I of the Liquidation Process Regulations, 2016. So, in view of the above proposition of relevant law and rulings of he National Company Law Appellate Tribunal(NCLAT), Bank can withdraw few assets listed for e-auction sale that met the reserved price or for any other valid reason..
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A.Dear Client,
In the context of an e-auction where multiple assets from a company are under possession and successfully bid upon, it's essential to carefully review the terms and conditions set by the bank for the auction. Typically, these terms should outline the process and conditions of the sale. If the bank, post a successful bid, attempts to deny the sale of specific assets, claiming that they have received the required amount from the initial assets, it may be a breach of contract or a violation of the auction terms. Consult with a legal professional to review the auction documentation and advise you on the best course of action. If the terms explicitly state that successful bids are binding for the entire lot of assets, you may have grounds to challenge the bank's decision. Legal advice will be crucial in asserting your rights and ensuring a fair and transparent resolution in accordance with the agreed-upon terms.
Thankyou
In the context of an e-auction where multiple assets from a company are under possession and successfully bid upon, it's essential to carefully review the terms and conditions set by the bank for the auction. Typically, these terms should outline the process and conditions of the sale. If the bank, post a successful bid, attempts to deny the sale of specific assets, claiming that they have received the required amount from the initial assets, it may be a breach of contract or a violation of the auction terms. Consult with a legal professional to review the auction documentation and advise you on the best course of action. If the terms explicitly state that successful bids are binding for the entire lot of assets, you may have grounds to challenge the bank's decision. Legal advice will be crucial in asserting your rights and ensuring a fair and transparent resolution in accordance with the agreed-upon terms.
Thankyou
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