Case Law Analysis
|Delhi High Court
SARFAESI Act | 'As Is Where Is' Clause Cannot Override Secured Creditor's Duty to Disclose UEI Encumbrance : Delhi HC
The court ruled that a secured creditor in a SARFAESI auction must disclose known material encumbrances like unearned increase (UEI) charges, holding that an 'as is where is' clause does not override this statutory duty. Indian Bank was directed to pay UEI charges for four auctioned plots, with conveyance deeds to follow within four weeks. The ruling safeguards auction purchasers from hidden liabilities and mandates transparency in distressed asset sales.