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]

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1999
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3499
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