Patil Constructions And Infrastructure Limited Vs IFCI Venture Capital Funds Ltd. & Anr. (Delhi High Court)
Summary: The Delhi High Court dismissed LPA 604/2026 filed by M/s Patil Constructions and Infrastructure Limited against dismissal of its writ petition concerning enforcement of secured assets under the SARFAESI Act. The dispute arose from loans of ₹15 crore and ₹10 crore, classification of the accounts as NPA, SARFAESI measures, successive One-Time Settlement proposals and subsequent auction of one secured asset for ₹9.09 crore. The appellant relied upon an earlier order dated 12.08.2025 recording an OTS of ₹15 crore subject to approval of the competent authority, pursuant to which a cheque of ₹9.92 crore was handed over. The cheque was subsequently dishonoured for insufficient funds. The appellant contended that the dishonour resulted from delay and conduct attributable to the secured creditor and that the Sale Certificate issued after the later auction remained unregistered pursuant to the DRT’s order.
The respondent and auction purchaser contended that the entire sale consideration had been deposited within the period prescribed by Rule 9(4) of the Security Interest (Enforcement) Rules, 2002 and that the sale had consequently attained completion. The Court considered the Supreme Court decision in E. Muthurathinasabathy v. Sri International and distinguished it on facts because, in that case, the entire sale consideration had not been deposited within the statutory period, whereas in the present case the auction purchaser had deposited the entire consideration and a Sale Certificate had been issued.
