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Supreme Court of India 2022-02-16 allowed

Deenadayal Nagari Sahakari Bank Ltd. & Another vs Munjaji and others

Bench: 2 — M.R. Shah

In Brief

A cooperative bank sought to recover a defaulted loan by auctioning mortgaged properties. The borrower obtained a stay of the auction, which was later vacated. When the auction was held after more than seven days (due to the stay), the borrower challenged it, claiming fresh proclamation was required. The High Court set aside the auction. The Supreme Court held that a borrower cannot benefit from a stay it obtained itself and then argue procedural defects arose from that same stay. Once the sale certificate is issued and the statutory period for objections passes, subsequent writ petitions must be carefully scrutinized. The Court found no procedural breach and allowed the appeals, dismissing the borrower's challenge.

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Cooperative Societies Law Recovery Proceedings Auction Sales Mortgaged Property Procedural Compliance Statutory Interpretation Conduct of Borrower

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