Failure to Pay 75% Bid Amount as per Rule 9(4) Invalidates SARFAESI Auction

Muneru Industries Pvt. Ltd. Vs Apsara Constructions (DRAT Kolkata) The Debt Recovery Appellate Tribunal, Kolkata dismissed the appeal filed by the auction purchaser and upheld the order of DRT-II Hyderabad setting aside an e-auction sale and the consequent sale certificate due to non-compliance with mandatory provisions of the Security Interest (Enforcement) Rules, 2002. The dispute arose from SARFAESI proceedings initiated by the secured creditor after the borrower’s loan account was classified as NPA. The borrower challenged the measures taken under Section 13 of the SARFAESI Act, alleging...