Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi
Order Date: July 6, 2026
Case Overview
This appeal was 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 assets for Rs. 34.91 crore in an auction conducted in 2022 after several unsuccessful attempts. The appellant has paid approximately 10% of the purchase price to the Resolution Professional but has not paid the remaining balance. When the appellant was ready to pay the balance amount, the liquidator demanded payment of interest at 12% per annum, citing terms in the Auction Notice and Letter of Intent. The appellant disputes this interest demand.
Final Outcome
The NCLAT accepted the appellant's submission that they are willing to deposit the entire balance auction money in a Fixed Deposit with a Nationalized Bank, with a lien marked in favor of the Registrar of NCLAT to the credit of Company Appeal (AT) (Insolvency) No. 1162 of 2026. This deposit is to be made within one week. The Tribunal directed the Liquidator to refrain from taking fresh steps for a new auction until the next hearing date. The matter has been adjourned and listed for further hearing on July 20, 2026.
Topics: Insolvency Proceedings, Auction Dispute, Interest Payment