#auction sale

The Supreme Court ruled that the exemption under Section 60(1)(ccc) of the Recovery of Debts and Bankruptcy Act applies only to the personal guarantor who is the judgment-debtor, not to his legal heirs. It also held that a failure to serve notice under Order XXI Rule 22 does not invalidate the auction of the secured property.

The Supreme Court ruled that while financial corporations must exercise their statutory power to auction properties fairly under Section 29 of the State Financial Corporations Act, borrowers cannot obstruct recovery through frivolous or delayed litigation. The auction sale is final unless vitiated by fraud or material irregularity, and persistent defaulters forfeit equitable relief.

Calcutta High Court rules that a challenge to an auction sale under the RDDB Act is non-maintainable without compliance with the statutory deposit requirement under Rule 60 of the Income Tax Act’s Second Schedule. The court upheld the auction’s validity and directed possession transfer to the buyer within 60 days, reinforcing procedural compliance in debt recovery proceedings.

Supreme Court holds that failure to deposit full auction amount within 15 days under Rule 107(11)(h) of Maharashtra Co-operative Societies Rules renders sale a nullity, not merely an irregularity.

Bombay High Court holds that stamp duty on property sold via court-monitored auction must be calculated on auction price, not market valuation, affirming transparency of judicial sales.