Joint Auction Under IBC And SARFAESI Is Permissible: NCLAT

[18 May 2022] National Company Law Appellate Tribunal (NCLAT) Principal Bench comprising of Justice Ashok Bhushan and Ms. Shreesha Merla in the case of Ayan Mallick v. Pratime Bayal upheld the Order of NCLT, Kolkata wherein NCLT held that a joint auction under the provision of Insolvency and Bankruptcy Code, 2016 (Code) and SARFAESI, 2002 is permissible in order to maximise the value of the assets of the Corporate Debtor. The Suspended director of the Corporate Debtor filed the appeal before the NCLAT under Section 61 of the Code against the order dated 01.02.2022 passed by NCLT Kolkata wherein it has allowed the joint auction sale of the assets of Corporate Debtor under the Code and the guarantor under SARFAESI.