In Brief
Canara Bank sought to enforce its security interest in a mortgaged property belonging to a guarantor after default. The bank issued a notice of intention to sell simultaneously with a public auction notice. The High Court held that these notices must be issued separately—the borrower must first receive individual notice, then 30 days later the bank decides the mode of sale and issues public notice. The Supreme Court disagreed. It held that the notices can be issued simultaneously; the only statutory requirement is that the actual sale must not occur before 30 days from the date of notice. The Court rejected the High Court's sequential interpretation as an improper rewriting of the rules, and allowed the appeal, permitting the bank to conduct a fresh auction.
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