Victory for Bona Fide Purchaser: Supreme Court Upholds SARFAESI Auction

Sanjay Sharma Vs Kotak Mahindra Bank Ltd. & Ors. (Supreme Court of India) In a landmark judgment, the Supreme Court of India upheld the validity of an auction sale conducted under the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act). The case involved a property in Old Rajinder Nagar, New Delhi, originally owned by Champa Bhen Kundia, who had mortgaged it to Kotak Mahindra Bank in 2001. Due to non-repayment, the bank-initiated proceedings under the SARFAESI Act and auctioned the property in 2010. Sanjay Sharma emerged as ...