+
Defaulting borrowers cannot thwart the auction process: SC
Real Estate

Defaulting borrowers cannot thwart the auction process: SC

In a recent ruling, the Supreme Court has asserted that a borrower in default cannot impede the auction of their mortgaged properties by financial institutions seeking repayment, regardless of when they attempt to settle their outstanding dues. The apex court has clarified that such a borrower cannot redeem their mortgaged property if they fail to clear their debts with financial institutions before the publication of an auction notice. This legal provision is governed by the law overseeing the recovery of Non-Performing Assets (NPAs).

Emphasizing the importance of preserving the integrity of the auction process, a bench consisting of Chief Justice DY Chandrachud and Justice JB Pardiwala stated, "It is the duty of the courts to vigorously protect the sanctity of any auction conducted. The courts should be reluctant to interfere with auctions; otherwise, it would undermine the very purpose and objective of auctions and discourage public trust and participation in the process."

In summary, the Supreme Court's ruling underscores the significance of adhering to established auction procedures and prevents defaulting borrowers from obstructing the auction of their mortgaged properties after the issuance of auction notices by financial institutions.

In a recent ruling, the Supreme Court has asserted that a borrower in default cannot impede the auction of their mortgaged properties by financial institutions seeking repayment, regardless of when they attempt to settle their outstanding dues. The apex court has clarified that such a borrower cannot redeem their mortgaged property if they fail to clear their debts with financial institutions before the publication of an auction notice. This legal provision is governed by the law overseeing the recovery of Non-Performing Assets (NPAs). Emphasizing the importance of preserving the integrity of the auction process, a bench consisting of Chief Justice DY Chandrachud and Justice JB Pardiwala stated, It is the duty of the courts to vigorously protect the sanctity of any auction conducted. The courts should be reluctant to interfere with auctions; otherwise, it would undermine the very purpose and objective of auctions and discourage public trust and participation in the process. In summary, the Supreme Court's ruling underscores the significance of adhering to established auction procedures and prevents defaulting borrowers from obstructing the auction of their mortgaged properties after the issuance of auction notices by financial institutions.

Next Story
Infrastructure Urban

Revolt Motors Unveils ‘Azadi From Petrol’ Offer

To mark India’s 78th Independence Day, Revolt Motors, the country’s leading electric motorcycle brand, has introduced its special “Azadi From Petrol” offer, encouraging riders to break free from rising fuel costs and embrace smarter, sustainable mobility.Under this limited-period scheme, customers purchasing any Revolt electric motorcycle can enjoy benefits worth up to Rs 20 million. The package includes zero insurance fees, providing free coverage valued at up to Rs 7 million, along with cash savings of up to Rs 13 million.The initiative highlights Revolt’s mission to make electric ..

Next Story
Infrastructure Energy

Inox Green Signs 182 MW Wind O&M Deal

Inox Green Energy Services Ltd., one of India’s leading renewable energy operations and maintenance (O&M) providers, has signed an agreement with a major diversified Indian conglomerate for the comprehensive O&M of 182 MW of operational wind projects under its renewable energy division.Located across multiple sites in Western India, these projects are integrated with common infrastructure owned by Inox Green. The deal includes converting 82 MW of wind projects from limited-scope to comprehensive O&M, as well as renewing comprehensive O&M for another 100 MW well ahead of sched..

Next Story
Infrastructure Urban

MPL Q1 Profit Rises to Rs 144 Million

Manali Petrochemicals Limited (MPL), a leading petrochemical manufacturer and part of AM International, Singapore, has reported its unaudited consolidated financial results for the quarter ended 30 June 2025.The company posted a consolidated total income of Rs 2.43 billion for the quarter, up from Rs 2.38 billion in the preceding quarter ended 31 March 2025. Profit Before Tax (PBT) stood at Rs 200 million, compared to Rs 159 million in the previous quarter, while Profit After Tax (PAT) rose to Rs 144 million from Rs 108 million. For the full year ended 31 March 2025, MPL recorded a total incom..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?