SARFAESI Auction Quashed as Legal Heirs Were Not Served 15-Day Notice Before Sale

S.G.K. Industrial Corporation and Others Vs Authorized Officer (DRT Chandigarh) The Debts Recovery Tribunal (DRT), Chandigarh, allowed a securitisation application filed under Section 17 of the SARFAESI Act challenging the measures taken by the bank, including the auction of secured assets. The applicants had availed cash credit, vehicle loan and FITL facilities, with mortgages created over two adjoining plots owned by the proprietor and the guarantor. Following financial losses during the COVID period, the loan account was classified as a Non-Performing Asset (NPA) on 28.10.2021, after which ...