2.17.27 Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019

27. Mode of sale.

(1) The bankruptcy trustee shall ordinarily sell the assets of the bankrupt through an auction as specified in

(2) The bankruptcy trustee may sell the assets by private sale, in the manner specified in if-

(a) the asset is perishable in nature;

(b) the value of the asset is likely to deteriorate significantly if the sale is delayed; or

(c) the selling price of the asset is higher than the reserve price of a failed auction.

(3) The following persons shall not purchase or acquire any interest in the property of bankrupt, directly or indirectly, without permission of the Adjudicating Authority–

(a) the bankruptcy trustee or any partner or director of the insolvency professional entity of which the bankruptcy trustee is a partner or director;

(b) any professional appointed by the bankruptcy trustee for the bankruptcy process;

(c) any creditor or associate of the bankrupt; and

(d) any company where the bankrupt or a creditor is a promoter or director.

(4) The bankruptcy trustee shall not proceed with a sale, if he has reason to believe that there is any collusion amongst any one or more of the following persons: –

(a) the buyers;

(b) the bankrupt;

(c) the creditors;

(d) associates of the bankrupt or creditors;

(e) the corporate debtor; or

(f) related party of the corporate debtor, and shall submit a report to the Adjudicating Authority for appropriate orders.