Banks cannot be restrained from selling mortgaged property: SC

Bank of Baroda Vs Karwa Trading Company & Anr. (Supreme Court of India) Summary: In Bank of Baroda v. Karwa Trading Company & Anr. (Civil Appeal No. 363 of 2022, decided on 10 February 2022), the Supreme Court examined whether a borrower undergoing recovery proceedings under the SARFAESI Act, 2002, could reclaim possession of mortgaged property by merely depositing the reserve price fixed for auction rather than discharging the full outstanding liability. The borrower had availed loan facilities from the appellant bank secured against two properties but defaulted, leading to classifica...