SARFAESI Newsletter | August 2024

The SARFAESI Newsletter explores the recent cases, providing a framework for the enforcement of security interests by secured creditors, allowing them to recover dues through various means. One of the key provisions under this Act is Section 14, which empowers banks to seek assistance from a Magistrate to take possession of a property when necessary. When a bank purchases a property through an auction, questions arise about whether it can still invoke Section 14. This issue explores the interplay between the auction process and the continued applicability of Section 14, highlighting the legal nuances involved.

1) Failure to pay the balance of the sale price by Purchaser, the initial deposit of 25%, which the bidder made at the outset, will be forfeited