auction purchaser Archives

Banks can forfeit entire earnest money and not just extent of loss suffered by it due to auction purchaser’s default: SC

Any dilution of the forfeiture provided under Rule 9(5) of SARFAESI Rules would result in entire auction process under SARFAESI Act being disregarded by mischievous auction purchasers through sham bids, thereby undermining the overall object of the Act of promoting financial stability, reducing NPAs and fostering a more efficient and streamlined mechanism for recovery of bad debts.

Case Briefs Supreme Court

Section 13(8) of SARFAESI Act| Right of redemption of mortgage extinguishes on publication of auction notice: Supreme Court

The respondents in the instant matter constituted the borrower, guarantor and the bank (secured creditor), while the appellants were the auction purchasers.

Case Briefs Supreme Court

Borrower to pre-deposit 50% of the “debt due” including ‘interest’ under Section 18 of SARFAESI Act: Supreme Court

The Court was called upon to decide as to while calculating the amount to be deposited as predeposit under Section 18 of the SARFAESI Act, 50% of which amount the borrower is required to deposit as pre-deposit and whether while calculating the amount of “debt due”, the amount deposited by the auction purchaser on purchase of the secured assets is required to be adjusted and/or appropriated towards the amount of pre-deposit to be deposited by the borrower under Section 18 of the SARFAESI Act.