In Brief
Indian Overseas Bank sought to enforce security over mortgaged assets of RCM Infrastructure Ltd through SARFAESI auction proceedings. After sale confirmation (Dec 2018) but before full payment (March 2019), the debtor filed insolvency petition, triggering moratorium. The Bank continued and completed the sale during CIRP. The Court held that under IBC Section 14(1)(c), the moratorium on enforcing security interests applies to SARFAESI actions once CIRP is admitted. Statutory sales under SARFAESI Rules are complete only upon full payment; part payment before CIRP doesn't validate the transaction. IBC provisions override SARFAESI by Section 238. The petition was not mala fide as it disclosed prior enforcement actions. Appeal dismissed.
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