In Brief
A successful bidder challenged the High Court's judgment setting aside an auction sale of mortgaged property conducted by a cooperative bank. The High Court had held that the auction was invalid because, following the 2002 Act's repeal of the 1984 Act, execution proceedings must follow the 1996 Arbitration Act. The Supreme Court held that Section 126(6) of the 2002 Act protects pending legal proceedings, including execution sales initiated before the 2002 Act came into force. The Court found the borrowers had ample opportunity to recover the property under statutory procedure but failed to do so, and dismissed allegations of malafide as vague and unsubstantiated. The appeal was allowed, the auction sale confirmed, and the borrowers ordered to pay surplus proceeds to the purchaser.
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