2.5.33:Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016

33. Mode of sale.

(1) The liquidator shall ordinarily sell the assets of the corporate debtor   in the manner specified in

(2) The liquidator may sell the assets of the corporate debtor by means of  private sale in the manner specified in when-

(a) the asset is perishable;

(b) the asset is likely to deteriorate in value significantly if not sold immediately;

(d) the prior permission of the Adjudicating Authority has been obtained for such sale:

Provided that the liquidator shall not sell the assets, without prior permission of the Adjudicating Authority, by way of private sale to-

(a) a related party of the corporate debtor;

(b) his related party; or

(c) any professional appointed by him.

(3) The liquidator shall not proceed with the sale of an asset if he has reason to believe that there is any collusion between the buyers, or the corporate debtor’s related parties and buyers, or the creditors and the buyer, and shall submit a report to the Adjudicating Authority in this regard, seeking appropriate orders against the colluding parties.