Topic
SARFAESI Act
2 articles
Property Law
Sanctity Is the Reward of Legality: Supreme Court Quashes a SARFAESI Auction Sale of a Hill Resort Over Restraint-Order Bids, a Truncated Notice Period and a Nominee Purchaser
A mortgaged hill resort, a sale certificate issued to a firm that did not bid, and a bid received while a tribunal's restraint was in force: the Supreme Court held that the auction was illegal in its entirety, and that the finality attaching to auction sales is earned only by compliance with the statutory procedure.
14 min readIndirect Tax & GST
Priority Is Not Purity: Madras High Court Holds a SARFAESI Auction Purchaser Must Clear a Known Excise Attachment Before the Encumbrance Entry Is Removed
A bank sold a mortgaged property under SARFAESI with a Central Excise attachment disclosed as a known encumbrance, then asked the High Court to have the entry struck from the encumbrance certificate. The Division Bench refused: priority over Crown dues is settled, but Rule 9 of the Security Interest (Enforcement) Rules, 2002 is mandatory.
15 min read