Case Law Analysis
|Punjab and Haryana High Court
SARFAESI Rule 8(7) | Bank’s Failure to Disclose Khasra Numbers or Non-Mortgaged Assets Invalidates Auction & Mandates Earnest Money Refund with 9% Interest : Punjab & Haryana HC
The Punjab & Haryana High Court has ruled that banks must precisely disclose all property details in SARFAESI auction notices, including Khasra numbers and the exact scope of mortgaged assets. Misrepresentation or omission - such as including non-mortgaged machinery - renders the auction void and obligates the bank to refund earnest money with 9% interest, reinforcing transparency as a non-negotiable condition of secured creditor action under the Act.