Top bidder for property seeks direction from NCLT on transfer of title to Shree Administrator

The bench asked the administrator and Supreme Infrastructure India to file their replies and listed the matter for further hearing on December 22.

A Nagpur based company, which emerged as the highest bidder for a property in Mumbai in an auction organized by? Srei Infrastructure Finance Ahead of the insolvency proceedings against it, it on Monday sought an “appropriate order” from the Kolkata bench of the National Company Law Tribunal (NCLT) to authorize an administrator appointed by the Reserve Bank of India to complete the formalities to transfer the title to the property in its favor. instructions can be given. ,

After the e-auction on August 11 – Zqube Infracon was declared the highest bidder for the commercial property in Powai, Mumbai – which was pledged to Srei Infrastructure Finance (SIFL). SIFL had appointed iQuippo as auctioneer to sell the property, which is owned by Supreme Infrastructure India,

reserve Bank of India Removed the board of SIFL and its wholly owned subsidiary Shrey Equipment Finance and appointed Rajneesh Sharma as the companies’ administrator on October 4, citing governance concerns and lapses by the two NBFCs. The Kolkata bench of the NCLT on October 8 allowed initiation of insolvency proceedings against two of the Shrey group companies after the central bank filed insolvency applications.

In his submission before a bench of NCLT Justice Rajasekhar VK and Justice Balraj Joshi on Monday, Jaqube Infracon’s counsel Jishnu Choudhary said that the company had submitted an earnest money amount of Rs 1.5 crore in favor of SIFL on August 10 as a requirement to participate. was deposited. e-auction. The company was declared the highest bidder for Rs 15 crore.

The reserve price for the property was fixed at Rs 15 crore. As per the application of ZQube Infracon before the Bench, there were only two bidders, but the other bidders withdrew. However, the LOA was not issued within the specified time frame. Subsequently, the company approached Supreme Infrastructure India requesting for issuance of LOA. On 14 September, Supreme Infrastructure informed the company that “as the response was low, Shreya Infrastructure Finance does not wish to proceed with the sale and has canceled the applicant’s bid”.

In its application, Zqube said that SIFL and Supreme Infrastructure have failed to provide any adequate justification for canceling the bid. It was also alleged that the earnest money was not refunded.

Choudhary submitted before the bench that the highest bidder, Zqube Infracon, was entitled to transfer the property so that the proceeds from the e-auction could come to the common pool of financial service providers. “The e-auction, which was conducted before the commencement of the insolvency proceedings of Srei companies, should mandatorily come to an end,” he said.

Advocate Jishnu Saha, representing Administrator Rajnish Sharma, submitted that while the moratorium has commenced under the provisions of the Insolvency and Bankruptcy Code (IBC) for Srei Infrastructure Finance, these provisions will now be applicable.

The bench asked the administrator and Supreme Infrastructure India to file their replies and listed the matter for further hearing on December 22.