Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi
Order Date: 24.09.2026
Case Overview
The National Company Law Appellate Tribunal (NCLAT) heard an appeal filed by Indojewel Jewellery Pvt. Ltd. against Multistoried IT & Gems Commercial Premises Cooperative Society Ltd. and another respondent. The dispute arises from liquidation proceedings where Indojewel purchased a property through auction.
The appellant, Indojewel, claims to be a bona fide auction purchaser who deposited approximately Rs 5.21 crore and received a sale certificate on 16.08.2023. Despite this, Respondent No. 1 (the Society) has raised a demand of Rs 1.02 crore against the appellant. Indojewel argues that this demand violates the "clean slate" principle applicable to auction purchasers in liquidation proceedings, especially since the liquidator had communicated that the Society's claim would be dealt with under Section 53 of the Insolvency and Bankruptcy Code.
The Society contends that the auction terms specifically required the purchaser to clear all existing charges on the property. However, the Society's counsel made a statement on record that they have no intention to initiate any coercive process against the appellant for the next one month.
Final Outcome
The Tribunal recorded the Society's statement regarding no coercive action for one month. Respondent No. 1 was granted two weeks to file a reply, with the appellant given one week thereafter to file a rejoinder. The matter has been listed for next hearing on 16.10.2026.
Topics: Insolvency Auction Dispute, Property Charges, NCLAT Proceedings