Top bidder for property seeks NCLT order to direct Srei administrator on title transfer

The bench requested the administrator and Supreme Infrastructure India to file their responses and listed the matter for additional listening to on December 22.

A Nagpur-based firm, which emerged as the very best bidder for a property in Mumbai in an public sale performed by Srei Infrastructure Finance forward of insolvency proceedings in opposition to it, on Monday sought “acceptable orders” from the Kolkata bench of the Nationwide Firm Legislation Tribunal (NCLT) to direct the Reserve Financial institution of India-appointed administrator to finish formalities to switch the title of the property in its favour.

Zqube Infracon was declared the very best bidder for the business property in Powai, Mumbai — which had been mortgaged to Srei Infrastructure Finance (SIFL) — after an e-auction on August 11. SIFL had engaged iQuippo because the auctioneer to promote the property, whose proprietor is Supreme Infrastructure India.

The RBI outmoded the boards of SIFL and its wholly-owned subsidiary Srei Gear Finance and appointed Rajneesh Sharma as administrator of the businesses on October 4, citing governance considerations and defaults by the 2 NBFCs. The Kolkata bench of the NCLT on October 8 gave its approval to start out insolvency proceedings in opposition to the 2 Srei group firms after the central financial institution filed insolvency purposes.

In his submission earlier than the bench of Justices Rajasekhar VK and Balraj Joshi of the NCLT on Monday, Zqube Infracon’s counsel Jishnu Chowdhury stated the corporate had made an earnest cash deposit of Rs 1.5 crore in favour of SIFL on August 10 as a requirement to take part within the e-auction. The corporate was declared the very best bidder at Rs 15 crore.

The reserve value for the property was fastened at Rs 15 crore. There have been solely two bidders, however the different bidder backed out, in response to Zqube Infracon’s utility earlier than the bench. Nonetheless, the LOA was not issued inside the talked about timeframe. Following that, the corporate approached Supreme Infrastructure India, requesting issuance of an LOA. On September 14, Supreme Infrastructure knowledgeable the corporate that “for the reason that response was low, Srei Infrastructure Finance doesn’t wish to go forward with sale and has cancelled the applicant’s bid”.

Zqube, in its utility, stated SIFL and Supreme Infrastructure had failed to offer any substantial justification for cancellation of the bid. It additionally alleged that the earnest cash deposit was not refunded.

Chowdhury submitted earlier than the bench that being the very best bidder, Zqube Infracon was entitled to switch of the property in order that the quantity gained from the e-auction might come into the frequent pool of the monetary service suppliers. “The e-auction, which was performed previous to the graduation of the insolvency proceedings of the Srei firms, should essentially be concluded,” he stated.

Advocate Jishnu Saha, representing administrator Rajneesh Sharma, submitted that because the moratorium underneath provisions of the Insolvency and Chapter Code (IBC) for Srei Infrastructure Finance has began, these provisions will apply now.

The bench requested the administrator and Supreme Infrastructure India to file their responses and listed the matter for additional listening to on December 22.