The re-auction of Gontermann-Peipers India Ltd (GPIL) took place on Friday under the shadow of a Supreme Court direction that allowed the process to continue but barred the disclosure of the highest bidder.

Admitting an appeal filed by the liquidator challenging the order of the National Company Law Appellate Tribunal, the apex court issued notices to all parties and set the hearing in motion.

Sources said the assets of forge steel roll maker GPIL, located on Diamond Harbour Road, fetched an offer of Rs 127.75 crore, which is about 45 per cent more than the previous bid of Rs 88 crore by Snaefell Heights LLP, a joint venture between Srijan Realty and Shakambhari Group.

Snaefell has also filed an appeal before the apex court challenging the order of the NCLAT which allowed the rebid of the plant located on a 25.35-acre plot, which is ripe for residential real estate development.

JSW Steel was one of the parties who had sought the re-auction of GPIL. It also participated in the auction that took place on Friday. Multiple sources confirmed that the Sajjan Jindal company did not go all the way for the asset and lost out in the bidding race.

Snaefell Heights stayed away from the Friday auction after the SC admitted the appeal challenging the rebid. The firm’s plea is to confirm the first bid or return the Rs 88 crore it had paid or return the amount with interest if the re-auction stayed.

Six companies had submitted an earnest money deposit — 10 per cent of the reserve price of Rs 91 crore — for the auction on Friday.

GPIL, which was set up by the Germans in 1968, came under the ownership of the Mittal family in 1980. It used to be managed by Pramod and Vinod Mittal, younger brothers of steel czar Lakshmi Niwas Mittal. The operation of the plant stopped in May 2017and it was admitted for bankruptcy proceedings in December 2019 for defaulting on payment to creditors.

JSW Steel was the top bidder under the corporate insolvency resolution process but the applicant’s conditions were not acceptable to the committee of creditors of GPL.

After failing to clinch an acceptable resolution plan under CIRP, the company was sent for liquidation.

There are about 462 people on the rolls of the company, many of whom are rooting for the revival of the unit under new management.

Given that the assets are being liquidated as a going concern, there may be pressure on the new owner to revive the unit, instead of selling the shed, plant and machinery as scrap and using the plot for real estate.

SC order

■ Gontermann rebid can continue but winner’s name cannot be disclosed

■ Snaefell Heights won the previous bid. Did not participate in the present auction

■ It moved the SC to challenge the NCLAT order permitting the re-auction