Sale By Way Of Public Auction Can't Be Set Aside Unless There's Material Irregularity Or Fraud/Collusion : Supreme Court
1 day, 6 hours ago

Sale By Way Of Public Auction Can't Be Set Aside Unless There's Material Irregularity Or Fraud/Collusion : Supreme Court

Live Law  

The Supreme Court has reiterated the principle that sale by way of public auction cannot be set aside until there is any material irregularity and/or illegality committed in holding the auction or if such auction was vitiated by any fraud or collusion. Reference was also made to the recent judgment in Celir LLP vs Ms Sumati Prasad Bafna and others 2024 LiveLaw 991 which held that mere procedural irregularities or deviation from rules are not grounds to set aside a confirmed sale unless such errors are fundamental in nature, such as fraud, collusion, inadequate pricing or underbidding. Citing these precedents, a bench comprising Justice BV Nagaratna and Justice NK Singh observed : "It is now a well-settled principle that a sale by way of public auction cannot be set aside until there is any material irregularity and/or illegality committed in holding the auction or if such auction was vitiated by any fraud or collusion." The bench made these observations while setting aside a judgment of the Delhi High Court which cancelled the auction sale of the secured asset conducted as per the SARFAESI Act 2002.

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History of this topic

SARFAESI | Borrower's Right Of Redemption Available Only Till Notice For Sale Of Mortgaged Asset Is Published : Supreme Court
Trending News
1 day, 4 hours ago

SARFAESI | Borrower's Right Of Redemption Available Only Till Notice For Sale Of Mortgaged Asset Is Published : Supreme Court

Live Law  

The Supreme Court has stated that the right of a borrower to redeem the secured asset can be exercised only till a notice for the sale of the mortgaged property is published in terms of Rule 9 of the Security Interest Rules, 2002. The Court observed that till the 2016 amendment to the Securitisation and Reconstruction of Financial Assets and …

SARFAESI | Borrower's Right Of Redemption Available Only Till Notice For Sale Of Mortgaged Asset Is Published : Supreme Court
Trending News
1 day, 4 hours ago

SARFAESI | Borrower's Right Of Redemption Available Only Till Notice For Sale Of Mortgaged Asset Is Published : Supreme Court

Live Law  

The Supreme Court has stated that the right of a borrower to redeem the secured asset can be exercised only till a notice for the sale of the mortgaged property is published in terms of Rule 9 of the Security Interest Rules, 2002. The Court observed that till the 2016 amendment to the Securitisation and Reconstruction of Financial Assets and …

SARFAESI | Confirmed Sale Can't Be Set Aside For Mere Irregularities Except Fraud, Collusion, Inadequate Pricing, Under-bidding Etc
Trending News
3 weeks, 5 days ago

SARFAESI | Confirmed Sale Can't Be Set Aside For Mere Irregularities Except Fraud, Collusion, Inadequate Pricing, Under-bidding Etc

Live Law  

The Supreme Court recently explained the circumstances under which a sale of property by auction or other means under the SARFAESI Act can be set-aside after its confirmation. The Court held that mere procedural irregularities or deviation from rules are not grounds to set aside a confirmed sale unless such errors are fundamental in nature, such as fraud, collusion, inadequate …

SARFAESI | Confirmed Sale Can't Be Set Aside For Mere Irregularities Except Fraud, Collusion, Inadequate Pricing, Under-bidding Etc
Trending News
3 weeks, 5 days ago

SARFAESI | Confirmed Sale Can't Be Set Aside For Mere Irregularities Except Fraud, Collusion, Inadequate Pricing, Under-bidding Etc

Live Law  

The Supreme Court recently explained the circumstances under which a sale of property by auction or other means under the SARFAESI Act can be set-aside after its confirmation. The Court held that mere procedural irregularities or deviation from rules are not grounds to set aside a confirmed sale unless such errors are fundamental in nature, such as fraud, collusion, inadequate …

Highest Bidder In Tender Process Has No Vested Right To Contract : Supreme Court
1 month, 1 week ago

Highest Bidder In Tender Process Has No Vested Right To Contract : Supreme Court

Live Law  

In a recent case, the Supreme Court observed that the highest bidder in the Notice Inviting Tender cannot have a vested right to have the auction concluded in his favor. The bench comprising Justice Bela M Trivedi and Justice Satish Chandra Sharma heard a civil appeal filed by Indore Development Authority challenging the High Court's Division Bench order directing the …

Sale Of Judgment Debtor's Whole Property Impermissible When Sale Of Part Property Can Satisfy Decree: Supreme Court
7 months, 3 weeks ago

Sale Of Judgment Debtor's Whole Property Impermissible When Sale Of Part Property Can Satisfy Decree: Supreme Court

Live Law  

In a recent judgment, the Supreme Court held that during the execution proceedings if the attachment of the judgment debtor's property takes place, then the executing courts shouldn't order the sale of the whole property when the part property could have satisfied the decree. In the present case, an attachment of the whole property of the judgment debtor was done …

Defaulter Can't Initiate Criminal Proceedings Against Creditor/Auction Purchaser Against Auction Held Under SARFAESI Act, Must Go To DRT: Allahabad High Court
8 months, 2 weeks ago

Defaulter Can't Initiate Criminal Proceedings Against Creditor/Auction Purchaser Against Auction Held Under SARFAESI Act, Must Go To DRT: Allahabad High Court

Live Law  

While quashing criminal proceedings against officers of M/s Himri Estate Private Limited and Indiabulls Housing Finance Ltd. initiated by Shipra Group, the Allahabad High Court held that defaulter cannot initiate criminal proceedings against creditor/auction purchaser against the auction conducted under the provisions of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Criminal proceedings cannot be …

When Can High Courts Entertain Writ Petition Under Article 226 Despite Existence Of Statutory Remedies? Supreme Court Explains
8 months, 4 weeks ago

When Can High Courts Entertain Writ Petition Under Article 226 Despite Existence Of Statutory Remedies? Supreme Court Explains

Live Law  

Observing that the High Court should exercise due care and caution while entertaining the petitions under Article 226 of the constitution even when there exists an alternative statutory remedy, the Supreme Court on Wednesday deprecated the High Court's interference in the auction sale proceedings completed by the Bank at the instance of the borrower despite having statutory remedy. Observing that …

Auction Purchasers Can't Object To Bank Offering One-Time Settlement Facility To Borrower Until Auction Sale Is Confirmed: Kerala High Court
9 months, 3 weeks ago

Auction Purchasers Can't Object To Bank Offering One-Time Settlement Facility To Borrower Until Auction Sale Is Confirmed: Kerala High Court

Live Law  

The Kerala High Court has held that auction purchasers cannot say that banks cannot enter into a one-time settlement facility with the borrowers and cancel the auction sale until the sale was conformed in their favour. As long as the sale of the mortgaged assets is not confirmed in favour of the auction purchasers and as long as the Sale …

SARFAESI Act | As per Unamended S.13(8), Borrower Has Right To Redeem Available Till Sale Certificate Is Registered & Possession Is Handed Over : Supreme Court
1 year, 2 months ago

SARFAESI Act | As per Unamended S.13(8), Borrower Has Right To Redeem Available Till Sale Certificate Is Registered & Possession Is Handed Over : Supreme Court

Live Law  

The Supreme Court, while deciding an appeal, settled the issue of right of redemption of a mortgaged property by a borrower under the unamended Section 13 of the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002. The Bench comprising of Justices Vikram Nath and Rajesh Bindal clearly held that as per the unamended Section 13 …

Dispute Between Defendants Regarding Validity Of Sale Deed Can’t Be Considered In Suit For Possession Instituted By Plaintiff: Supreme Court
1 year, 8 months ago

Dispute Between Defendants Regarding Validity Of Sale Deed Can’t Be Considered In Suit For Possession Instituted By Plaintiff: Supreme Court

Live Law  

The Supreme Court bench comprises Justices M.R. Ravikumar has ruled that an inter-se dispute on the validity of the sale deed executed between the defendants in respect of the suit land, cannot be considered in the suit for possession instituted by the plaintiff on the basis of a registered sale deed executed in its favour, as it would amount to …

SARFAESI Auction Can't Be Stayed Just Because Sale Agreement Holder Offered To Pay Dues, When Borrower Hasn't Invoked S.13(8) : Supreme Court
1 year, 8 months ago

SARFAESI Auction Can't Be Stayed Just Because Sale Agreement Holder Offered To Pay Dues, When Borrower Hasn't Invoked S.13(8) : Supreme Court

Live Law  

The Supreme Court has held that a writ petition under Article 226 of the Constitution of India is not maintainable against action taken by Bank under Section 13 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, since an alternative statutory remedy exists under Section 17 of SARFAESI Act. Since the Borrower in the …

SARFAESI | Bank Can't Forfeit Deposit Made After Auction Purchase When Bidder Wasn't Informed Of Challenge Pending Against Sale : Supreme Court
1 year, 8 months ago

SARFAESI | Bank Can't Forfeit Deposit Made After Auction Purchase When Bidder Wasn't Informed Of Challenge Pending Against Sale : Supreme Court

Live Law  

The Supreme Court has granted relief to an auction purchaser by directing the refund of the deposit made by him, which was forfeited by the bank by invoking Rule 9 of Security Interest Rules, 2002.Rule 9 enables the bank to forfeit the deposit amount on default of the auction purchaser to deposit the balance bid amount within the stipulated time. …

SARFAESI Act | Bank Can Auction Property With Encumbrances But Bidders Must Be Informed, 'As Is Where Is' Clause Not Sufficient: JKL High Court
2 years ago

SARFAESI Act | Bank Can Auction Property With Encumbrances But Bidders Must Be Informed, 'As Is Where Is' Clause Not Sufficient: JKL High Court

Live Law  

The Jammu and Kashmir and Ladakh High Court recently ruled that a Bank can auction the property even with encumbrances attached to property under the SARFAESI Act but it is incumbent upon the Bank to disclose the encumbrances and litigations attached to the property to all the persons who want to participate in the same and to the successful bidder. …

[O I R 10 CPC ] Party Executing Assignment Deed With Auctioneer After Successful Bidders Raise Dispute Qua Transaction Not Necessary Party: Calcutta HC
2 years, 1 month ago

[O I R 10 CPC ] Party Executing Assignment Deed With Auctioneer After Successful Bidders Raise Dispute Qua Transaction Not Necessary Party: Calcutta HC

Live Law  

The Calcutta High Court on Tuesday ruled that a party who entered into an assignment deed with an auctioneer, after the transaction with successful bidder was complete and a dispute regarding the same had arisen, is not a necessary party to the proceedings instituted by such bidder. Counsels for the applicant further contended that the applicant had issued a Sale …

Supreme Court Deprecates HC Practice Of Entertaining Writ Petitions Filed In SARFAESI Matters Without Exhausting Alternative Remedy
2 years, 1 month ago

Supreme Court Deprecates HC Practice Of Entertaining Writ Petitions Filed In SARFAESI Matters Without Exhausting Alternative Remedy

Live Law  

The Supreme Court deprecated the practice of entertaining writ petitions filed in SARFAESI matters without exhausting the alternative statutory remedy.In this case, the Telangana High Court set aside the e-auction sale held by the Bank under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 on. In this context, the bench comprising …

Court Auction Sale Is Most Transparent ; Registering Authority Cannot Sit In Appeal On The Aspect Of Transaction Price: Supreme Court
2 years, 1 month ago

Court Auction Sale Is Most Transparent ; Registering Authority Cannot Sit In Appeal On The Aspect Of Transaction Price: Supreme Court

Live Law  

The Supreme Court observed that a Registering Authority cannot sit in appeal over the decision of the Court permitting sale at a particular price. Public auction carried out through court process/receiver is the most transparent manner of obtaining the correct market value of the property, the bench comprising Justices Sanjay Kishan Kaul, Abhay S. Oka and Vikram Nath observed. Answering …

No Valid Sale Under Law If Notice Of Sale On Which Parties Acted Upon Has Been Set Aside: Kerala High Court
2 years, 7 months ago

No Valid Sale Under Law If Notice Of Sale On Which Parties Acted Upon Has Been Set Aside: Kerala High Court

Live Law  

The Kerala High Court on Wednesday observed that when the notice of sale based on which the parties bid for property has been set aside, it can be presumed that there is no valid sale under the law. Justice Bechu Kurian Thomas thereby dismissed the plea which had sought a direction to the respondent to confirm the sale of the …

'Motivated Exercise At Behest Of Defaulting Borrowers': Delhi High Court Imposes 1L Cost On PIL Questioning Auction Sale Of Mortgaged Assets
2 years, 9 months ago

'Motivated Exercise At Behest Of Defaulting Borrowers': Delhi High Court Imposes 1L Cost On PIL Questioning Auction Sale Of Mortgaged Assets

Live Law  

The Delhi High court recently imposed Rs. 1 lakh as cost on a litigant for filing a frivolous PIL with the objective of obstructing the sale of a property that was mortgaged by the borrowers with a financial institution to secure their loan.The Petitioner had sought action against the financial institution for allegedly sourcing huge amount of money to the …

An Adjudication Is Conclusive With Respect To Incidental/Connected Subject Matter Of The Litigation: Madras High Court
2 years, 9 months ago

An Adjudication Is Conclusive With Respect To Incidental/Connected Subject Matter Of The Litigation: Madras High Court

Live Law  

The Madras High Court has held that the rule of res judicata prevents the parties to a judicial determination from litigating the same question again. She executed a donation deed and gave life interest in the property to her daughter Kuppammal and the vested remainder was given absolutely in favour of her grandsons Ramchandran and Kaliaperumal. As the loan amount …

Whether Auction Purchasers In Pursuance Of Decree Will Have Preferential Right Over Purchaser Of Mortgaged Property Under SAFRAESI? Supreme Court To Consider
2 years, 11 months ago

Whether Auction Purchasers In Pursuance Of Decree Will Have Preferential Right Over Purchaser Of Mortgaged Property Under SAFRAESI? Supreme Court To Consider

Live Law  

The Supreme Court recently agreed to consider as to whether auction purchasers in pursuance of a decree will have a preferential right qua the mortgage property or not. Case Before Madras High Court The issue before the bench for consideration was whether the sale in favor of the M/S Arc Investments Castings LLP under the SARFAESI Act in respect of …

Document's Author Need Not Be Examined If Signature Is Not Denied : Supreme Court
3 years ago

Document's Author Need Not Be Examined If Signature Is Not Denied : Supreme Court

Live Law  

The Supreme Court has observed in its judgment delivered on December 16 that the examination of the author of a document is not required, if they had not denied their signature on the document, but only pleaded duress in execution of the same. It was eventually set aside by the Division Bench on the ground that the appellant had failed …

SARFAESI Proceedings Not Invalidated On Mere Failure Of Bank In Giving Reply To Objections If Borrower's Proposals Were Otherwise Considered : Supreme Court
3 years, 1 month ago

SARFAESI Proceedings Not Invalidated On Mere Failure Of Bank In Giving Reply To Objections If Borrower's Proposals Were Otherwise Considered : Supreme Court

Live Law  

The Supreme Court held that failure to furnish reply by the creditor as per the mandate of Section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 would not entitle the debtor of discretionary relief, if the Court is satisfied that the creditor has considered the debtor's representation and granted it sufficient opportunity …

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