In Brief
The Supreme Court allowed appeals by a bank and property purchaser against a High Court order that quashed foreclosure proceedings under the SARFAESI Act. The bank had issued a loan to acquire a pharmaceutical unit mortgaging the property. After default, the bank issued statutory notices and eventually sold the property at auction to the highest bidder, who later sold to a second purchaser. The borrower challenged the sale claiming the bank violated statutory procedures by failing to respond to representations before issuing possession notice. The Court held the borrower had waived its statutory remedies through repeated requests for restructuring and unfulfilled promises, causing the bank to delay enforcement. Third-party rights had been created through subsequent sales. The Court upheld the auction sale, which exceeded fair market valuation, and rejected arguments that machinery should have been separately auctioned.
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