In Brief
A bank sought to enforce a mortgage over pharmaceutical company's property under the SARFAESI Act after the borrower defaulted on a Rs.1.52-crore loan. The High Court quashed the auction citing the bank's failure to formally respond to representations invoking Section 13(3A). The Supreme Court allowed the appeal, holding that although the bank violated Section 13(3A), the borrower was estopped from complaining due to its own conduct: it repeatedly requested restructuring and moratorium extensions, made unfulfilled promises, and tacitly acquiesced to enforcement for over a year. The Court applied equitable estoppel doctrine and refused discretionary relief given third-party rights created through the auction and sale at a price higher than fair valuation. The order dismissing the writ petition was upheld.
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