Successful Bidder Cannot Wriggle out of a Bid in Liquidation | #InAMinute
Watch Now LawWiser’s latest In a Minute video on ‘Successful Bidder cannot wriggle out of a bid in liquidation’ featuring Neha Naik, Associate Partner, Phoenix Legal.
There is a growing trend of successful bidders in insolvency as well as liquidation proceedings wanting to retract their offers citing various reasons.
In this video, Neha explains that the Bidder cannot wriggle out of the contractual obligations arising out of acceptance of his Bid for sale as a going concern in liquidation. She quickly takes us through 2 important decisions one by the Supreme Court of India and the other by the National Company Appellate Tribunal (NCLAT).
The decisions are related to the fact that after accepting the bid, the bidder will not be entitled to the withdrawal if they fail to comply with the terms of the contract and consequently the bidder cannot wriggle out of the contractual obligations.