Property sold by Secured Creditor in an Auction Sale under SARFAEsi Act, 2022 held valid

Last updated: 08 November 2022
Quick Summary
The Supreme Court has upheld the validity of a property auction sale conducted by a secured creditor under the SARFAESI Act, 2002. Despite the creditor only holding symbolic possession of the hotel property, the court ruled that the sale was lawful. The court found that the borrower's repeated failure to repay the loan and their undertaking to allow realisation of secured assets justified the creditor's actions. Furthermore, the Supreme Court disagreed with the Bombay High Court's findings of fraud and collusion, stating that the auction purchaser's awareness of pending disputes did not automatically imply collusion.

Court :
Supreme Court of India

Brief :
Property sold by Secured Creditor in an Auction Sale under SARFAEsi Act, 2022 -held valid( Supreme Court)

Citation :
Civil Appeal Nos. 2928-2930 of 2018 [Arising out of SLP (C) Nos. 10215-10217/2016]

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?
  • No Ads
  • WhatsApp Broadcasts
  • Daily E-Newsletter
  • Unlimited Judgements Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits

Already a PRO member? Login here for an ad-free experience.

 
Comments


Recent Judgments :

  1. Forest Development Tax Demand, Collection and Refund Subject to Final Outcome of Pending Cases
  2. SC : Extended Limitation Cannot Be Invoked Where Department Was Aware of Valuation Facts
  3. SC : Selling Shares While in Possession of UPSI Constitutes Insider Trading Even if No Profit Is Made
  4. SC : Laser Imagers Compatible with Machines Under Different Tariff Headings Classifiable Under CTH 9033
  5. Education Consultancy Services to Foreign Universities Not Intermediary Services; Refund of IGST on Export of Services Allowed
  6. Penalty Cannot Be Confirmed Beyond What is Specified in Statutory Form GST DRC-01
  7. Non-Supply of Field Visit Report Vitiates Rejection of Revocation Application
  8. Alternative Remedy before GSTAT to be Exhausted Despite Allegation that Adjudication Travelled Beyond SCN
  9. ITAT Jodhpur: AO Allows ₹2.61 Crore Deduction under Sections 54EC and 54F; Assessee's Appeal Dismissed as Infructuous
  10. CESTAT Revokes Suspension of Customs Broker Licence for Non-Compliance with Mandatory 15-Day Hearing Requirement

View More Judgments »


Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Pro Member ajay khannaajay khannaPro Member Thanwar ChhatwaniThanwar ChhatwaniPro Member Anil GudleAnil GudlePro Member Sivanath VVSivanath VVPro Member chandradhass sathishchandradhass sathish
Subscribe to Pro
Join an elite circle of professionals

Browse by Category