In Brief
A borrower who defaulted on a bank loan had mortgaged properties as security. The bank conducted an auction where the appellant (PHR Invent Educational Society) emerged as the highest bidder and paid the full price. The borrower later filed a writ petition challenging the auction after the sale had been confirmed and registered. The Supreme Court held that the High Court erred in entertaining the writ petition because an effective statutory remedy under the SARFAESI Act (appeal to the Debt Recovery Tribunal) was available. The Court emphasized that High Courts ordinarily cannot entertain writ petitions under Article 226 when statutory remedies exist, particularly in bank recovery matters. A confirmed and registered auction sale cannot be interfered with except for fraud or collusion. The appeal was allowed and the writ petition dismissed with costs.
The lawyer headnote and full judgment text are available to registered users.