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Supreme Court of India 2020-04-24 partly_allowed

M/s. Tripower Enterprises (Private) Limited vs State Bank of India & Ors

Bench: 2 — A.M. Khanwilkar, Ajay Rastogi

In Brief

An auction purchaser bought mortgaged property at a public auction conducted by State Bank of India and received a sale certificate in 2017. The guarantor, who had admitted the mortgage and offered to pay dues earlier, later filed a writ petition challenging the Bank's application to return original title documents, claiming the mortgage was invalid. The Supreme Court held that once an auction concludes and a sale certificate is issued, the Bank must return the title documents to the purchaser. The guarantor cannot repeatedly raise the mortgage validity issue after admitting the debt. However, regarding land that was subject to a final court decree in favor of a third party, those documents should be withheld pending final resolution of the main proceedings.",

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