E-auction 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 Tribunals/Commissions/Regulatory Bodies

Successful Auction Purchaser can withdraw from e-Auction; NCLAT upheld refund of EMD and first instalment

In a case challenging the Adjudicating Authority’s order to withdraw from e-auction process and refund of EMD and first instalment, the Tribunal held that the Adjudicating Authority can allow the Successful Auction Purchaser to withdraw from e-auction process when the balance bid amount is due because of the attachment of the assets of the Corporate Debtor.

Case Briefs Supreme Court

IBC| Once CIRP is initiated and moratorium is ordered, proceedings under SARFAESI Act cannot continue: Supreme Court

Supreme Court: The bench of L. Nageswara Rao and BR Gavai*, JJ has held that the proceedings under the Securitisation and Reconstruction

Case Briefs Tribunals/Commissions/Regulatory Bodies

NCLAT | ‘As is where is basis, as is what is basis, whatever there is basis’; A super imposed condition in auctions | Reiterated again

National Company Law Appellate Authority Tribunal (NCLAT), New Delhi: The Bench of Justice Bansi Lal Bhatt (Acting Chairperson), Shreesha Merla (Technical member)