Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi
Order Date: July 6, 2026
Case Overview
This appeal has been filed by Bluefire Infotax Consultancy Pvt. Ltd., the successful auction purchaser of liquidation assets belonging to Corporate Debtor VGA Developers Pvt. Ltd. The appellant purchased the liquidation asset for Rs. 34.91 crore through an auction that took place in 2022 after several unsuccessful attempts to sell the property. The appellant has paid approximately 10% of the purchase price to the Resolution Professional but has not paid the remaining balance.
The core dispute centers around the liquidator's demand for interest at 12% on the unpaid balance amount, which the liquidator claims is stipulated in the Auction Notice and Letter of Intent. The appellant contests this interest demand while expressing willingness to pay the principal balance amount.
Final Outcome
The NCLAT has issued an interim order allowing the appellant to deposit the balance auction money in a Fixed Deposit with a Nationalised Bank, with a lien marked in favor of the Registrar, NCLAT to the credit of Company Appeal (AT) (Insolvency) No. 1162 of 2026. This deposit must be made within one week. The Tribunal has directed the liquidator to wait until the next hearing date (July 20, 2026) before taking fresh steps for a new auction. The appeal has been listed for further hearing on July 20, 2026.
Topics: Insolvency Proceedings, Auction Dispute, Interest Payment