Jfc Finance India Limited Vs Arvind Garg Liquidator… — Insolvency and Bankruptcy | Delhi HC (2025)

Jfc Finance India Limited Vs Arvind Garg Liquidator… — Insolvency and Bankruptcy | Delhi HC (2025)

What the court decided

AI extract

Outcome

Petition disposed of on the strength of respondent no.1's recorded statement that no further steps pursuant to the e-auction process for the sale of MBSL (except internal meetings with banks/stakeholders) would be taken till 21.04.2025, with the parties agreeing that the NCLT would pass appropriate orders on the petitioner's pending application; no merits adjudication by this Court.

Issue for consideration

Whether the petitioner, though a shortlisted participant in the sale of MBSL as a going concern, was deprived of participation in the pre-qualification proceedings for want of any link or instruction/notification. +1 more

Ratio / Principle

The Court took on record the statement of respondent no.1 (liquidator) that no further steps pursuant to the e-auction process for the sale of MBSL (except internal meetings with banks/stakeholders) would be taken till 21.04.2025, and accordingly disposed of the petition without adjudicating the merits.

Key takeaways

The Court recorded the agreement of respective counsels that it shall be for the NCLT to pass appropriate orders on the application already filed by the petitioner before the NCLT.ratio¶¶15

Detailed headnote1 paragraphs

Delhi High Court (Sachin Datta, J.), W.P.(C) 4634/2025, decided 09.04.2025: JFC Finance India Limited, a shortlisted participant in the e-auction sale of M/s Moser Baer Solar Ltd. ('MBSL') as a going concern under the Insolvency and Bankruptcy Code, 2016, complained that it received no link or notification for the pre-qualification stage despite completing registration and EMD deposit, rendering it virtually disqualified on allegedly erroneous grounds. Having already e-filed an application before the NCLT (then in recess till 15.04.2025), it sought urgent relief under Article 226 jurisdiction. Counsel for respondent no.1 (liquidator) refuted the contentions on merits but stated that, since the NCLT would reopen only on 15.04.2025, no further steps pursuant to the e-auction (save internal meetings with banks/stakeholders) would be taken till 21.04.2025; both sides agreed the NCLT would decide the pending application. Taking that statement on record, the Court disposed of the petition without expressing any view on the merits.

$~84

IN THE HIGH COURT OF DELHI AT NEW DELHI

- W.P.(C) 4634/2025 and CM APPLs. 21409/2025, 21410/2025 JFC FINANCE INDIA LIMITED .....Petitioner Through: Ms. Maneesha Dhir, Ms. Varsha Banerjee, Ms. Udita Singh, Advs.

versus

ARVIND GARG LIQUIDATION & ORS. .....Respondents Through: Mr. Kamal Mehta, Mr. Nishant Mankoo, Mr. Arvind Garg, Ms. Jasmine Sharma, Advs.

CORAM:

HON'BLE MR. JUSTICE SACHIN DATTA

O R D E R % 09.04.2025

In the present petition, the petitioner entity seeks to participate in the process of sale of M/s Moser Baer Solar Ltd. (hereinafter referred to as ‘ MBSL ’) as a going concern under the provisions of the Insolvency and Bankruptcy Code, 2016.

It is submitted that the petitioner was one of the shortlisted participant in the process of sale of MBSL as a going concern, but the right of participation has been virtually taken away from the petitioner on account of the fact that the petitioner did not receive any link or instruction/notification for participating in the pre-qualification proceedings.

It is further submitted that the petitioner had fulfilled all mandatory requirements of registering as a buyer, including deposit of Earnest Money Deposit (EMD) and uploading all relevant documents. However, it is contended that it was only in the absence of any specific instructions/notifications and/or a link to participate in the pre-qualification

This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 16/04/2025 at 12:30:30

proceedings that the petitioner could not fulfil the alleged requirements and has been, therefore, virtually rendered disqualified on erroneous ground.

It is pointed out that the petitioner had e-filed an application before the NCLT raising the aforesaid grievance and seeking appropriate prayer/s. However, since the NCLT is under recess and shall be reopening only on 15.04.2025, the present petition has been filed by the petitioner seeking urgent relief.

Learned counsel for respondent no.1 (liquidator), while refuting the contentions of the petitioner on merits, submits that since the NCLT shall be reopening only on 15.04.2025 (whereupon the matter is expected to be taken by the NCLT), the respondent no.1 shall not take any further steps pursuant to the e-auction process for the sale of MBSL (except for conducting internal meetings with the banks/stakeholders) till 21.04.2025. 6. Respective counsels for the parties are in agreement that it shall be for the NCLT to pass appropriate orders on the application already filed by the petitioner before the NCLT.

Accordingly, taking the aforesaid statement of the respondent no.1 on record, the present petition is disposed of.

SACHIN DATTA, J

APRIL 9, 2025/ uk

This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 16/04/2025 at 12:30:30