In Brief
State Bank of India challenged a High Court order setting aside sale proceedings and a sale certificate in an auction of the respondent's property. The High Court had invalidated the underlying mortgage based on a waiver document that, in its view, required registration. The Supreme Court allowed the appeal, holding that the High Court erred in entertaining the mortgage validity issue for the first time at the writ petition stage, without raising it earlier. The Court also emphasised the need to protect the innocent auction purchaser who had obtained a loan, was servicing it, and had spent money renovating the property. The order of the High Court was set aside.
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