NCLAT Denies Extension for Auction Deposit, Grants Partial Refund of EMD Due to COVID-19

The NCLAT denied the request for an extension of the auction deposit deadline due to the COVID-19 pandemic. However, it allowed a partial refund of the Earnest Money Deposit (EMD) to the bidders. The ruling came after considering the difficulties faced by participants during the pandemic. The decision is significant for companies involved in the insolvency resolution process under the Insolvency and Bankruptcy Code, as it provides some relief for bidders who could not meet the deadline but still wish to recover part of their deposit.