In Brief
Oasis Dealcom purchased a residential flat at an auction conducted by ING Vysya Bank following the default of Khazana Dealcomm. The borrowers challenged the auction sale as procedurally defective. The High Court set aside the sale, finding material irregularities and undue haste. The Supreme Court agreed. While affirming the setting aside of the sale, the Court held that the second application under Section 17 of the SARFAESI Act was maintainable despite an earlier application on the same property, as it raised a different cause of action. The Court directed repayment of the purchase price with 10% interest and permitted the bank to hold a fresh auction after proper notice if the borrowers fail to pay dues by December 10, 2016.
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