The National Company Law Tribunal (NCLT) Indore bench of Shammi Khan (Judicial Member) and Sanjeev Kumar Sharma (Technical Member)has held that the Adjudicating Authority is not empowered to adjudicate disputes relating to auction sale of the property which does not form part of the Corporate Debtor’s assets.
The present application has been filed under section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking declaration that sale certificate, auction sale, registered sale deed of the mortgaged property are illegal and void. It is further prayed that directions should be issued to compensate the Corporate Debtor for the losses occurred from the undervalued sale.
The Tribunal observed that the Applicants …