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Failure to Disclose All Known Encumbrances in Public Auction Vitiates Sale and Entitles Purchaser to Refund with Interest
The Supreme Court held that non-disclosure of litigation by a state authority during a public auction vitiates the sale and mandated refund of the deposited amount with 9% interest, affirming transparency and restitution principles.
4 days ago4 min read
Violation of Mandatory 15-Day Sale Notice under Rules 8 & 9 of SARFAESI Rules — Auction Sale Set Aside
The DRAT held that an auction sale is liable to be set aside if the mandatory 15-day sale notice and the procedural requirements under Rules 8 and 9 of the SARFAESI Rules are not strictly complied with.
Jan 134 min read
Auction Sale Invalid for Stale Valuation Under Rule 8(5) Despite Valid Service of Statutory Notices | DRAT Allahabad
An auction sale based on a stale valuation violates Rule 8(5) of the SARFAESI Rules and cannot be sustained, even where statutory notices were duly served.
Jan 24 min read
Right of Redemption Under SARFAESI After Auction Notice: Post-Notice Payment Does Not Invalidate Sale Proceedings
The High Court clarified that once an auction notice is issued under the SARFAESI Act, the borrower’s statutory right of redemption stands extinguished, and subsequent payments or settlement offers cannot invalidate the sale process or restrain completion of enforcement proceedings.
Dec 26, 20253 min read
Section 35 of SARFAESI Act Cannot Override Article 371A: Supreme Court Holds Enforcement Without Security Interest Lacks Jurisdiction
The Supreme Court held that Section 35 of the SARFAESI Act does not override Article 371A of the Constitution, and that SARFAESI enforcement without a valid security interest in Nagaland is without jurisdiction.
Dec 24, 20254 min read
One-Time Settlement Lacks Statutory Enforceability: Civil Suit Seeking Specific Performance Against Bank Liable to Rejection | Calcutta High Court
The Calcutta High Court clarified that one-time settlements are matters of commercial discretion and do not create enforceable contractual rights in favour of borrowers unless backed by a statutory or binding scheme.
Dec 20, 20254 min read
Ownership Under SARFAESI Transfers Only on Sale Certificate: Section 96 IBC Interim Moratorium Bars Completion of Auction Sale
The Bombay High Court held that ownership under SARFAESI transfers only upon issuance of a sale certificate, and an interim moratorium under Section 96 IBC bars completion of an auction sale.
Dec 18, 20255 min read
Prior Secured Creditor’s Charge Prevails Over Subsequent State Dues: High Court Clarifies Pre-Section 26E SARFAESI Priority
The Punjab & Haryana High Court held that a prior SARFAESI mortgage and auction sale could not be defeated by a subsequent State revenue attachment in the absence of a statutory first charge before Section 26E.
Dec 16, 20254 min read
High Court Sets Aside DRAT Order: NPA Classification After 90 Days of Default Upheld and SARFAESI Auction Sustained
Continuous default beyond ninety days justifies NPA classification, and borrower’s express consent to auction operates as waiver, barring subsequent SARFAESI challenges.
Dec 13, 20254 min read
DRT Cannot Impose Overseas Travel Restrictions Without Statutory Authority: High Court Quashes Recovery Officer’s Conditions as Unconstitutional
The Madhya Pradesh High Court has ruled that the DRT and its Recovery Officer cannot impose overseas travel restrictions without statutory authority. Since the 1993 Act contains no provision permitting curtailment of the right to travel abroad, such conditions violate Articles 19 and 21 and are unconstitutional.
Dec 12, 20253 min read
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