The National Company Law Appellate Tribunal (NCLAT) has directed Adani Infrastructure & Developers Pvt. Ltd. to pay 12% annual interest on a delayed balance of ₹305 crore from a liquidation auction of land belonging to Anil Limited in Ahmedabad.
Key Highlights
- Auction Details: On December 29, 2022, Adani Infrastructure won the bid for ₹325 crore for 1,44,856 sq. meters of land in Bapunagar, Ahmedabad, paying ₹20 crore as earnest money.
- Delay & Interest: The balance of ₹305 crore was to be paid within 90 days, with 12% interest applicable for delays beyond 30 days, per Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
- NCLAT Ruling: Overruling NCLT’s earlier waiver, NCLAT stated statutory timelines are binding. Concerns about encumbrances or “as-is-where-is” conditions do not exempt bidders from compliance.
- Interest Period: Interest accrues from January 28, 2023, to June 15, 2023 (when NCLT granted an extension). Adani Infrastructure must pay the interest within two weeks of the judgment.
Summary
Adani Infrastructure has been ordered to pay 12% interest on a delayed payment for a land auction in Ahmedabad, as NCLAT emphasized the binding nature of statutory timelines under liquidation regulations. The decision reinforces that “as-is-where-is” sales do not exempt bidders from adhering to prescribed payment schedules.
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