In Brief
A state financial corporation auctioned a defaulting borrower's resort property to the highest sole bidder for Rs. 11.11 crores in 2013. The High Court set aside the sale on the ground that the corporation failed to account for property value escalation over five years during which interim court orders prevented finalisation. The Supreme Court reversed the High Court's order, holding that the auction was otherwise valid and could not be set aside on price escalation grounds alone. However, the Court directed the auction purchaser to pay 12% annual interest on the bid amount for the five-year period, reflecting the property's continued use and value growth during that time.
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