Sale Certificate Issued In Favor Of Successful Bidder Can Be Cancelled If Bid Amount Is Not Paid Within 90 Days: NCLAT

The NCLAT ruled that a sale certificate issued to a successful bidder in an insolvency case can be canceled if the bid amount is not paid within 90 days. The tribunal reviewed a case where the bidder failed to honor payment timelines stipulated under the IBC. The court emphasized that deadlines in the insolvency process are sacrosanct to ensure timely resolution and avoid asset devaluation. It clarified that non-compliance with payment conditions can result in the cancellation of the sale certificate, even if the bidder has partially fulfilled other obligations. This decision underscores the importance of adhering to the IBC's strict deadlines and ensures accountability in asset transactions under insolvency proceedings.