Challenge to DRT order allowing sale of mortgaged property below ...

Unsecured creditor given priority over secured creditors in property sale. Fresh auction ordered, mortgagee recognized as sole secured creditor. Equitable rights upheld.

Case Laws Indian Laws

August 8, 2024

Challenge to DRT order allowing sale of mortgaged property below reserve price. Unsecured creditor treated as secured creditor, prioritized over original secured creditors. SCB's rights under LLA not superior to mortgagee's. SCB wrongly converted to secured creditor, preferred over consortium of secured banks. LLA signed post-mortgage initiation, SCB's bid discounted due to wrongful priority. Sumikin Bussan case cited to highlight SCB's limited rights against Karias, not against IOB or Petitioner. Equitable considerations ignored, reserve price crucial to auction terms. DRT directed to conduct fresh auction, recognizing mortgagee as sole secured creditor. SCB can pursue recovery from Karias independently. DRT's sale confirmation quashed. Petition granted by HC.

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Challenge to DRT order allowing sale of mortgaged property below ...

Unsecured creditor given priority over secured creditors in property sale. Fresh auction ordered, mortgagee recognized as sole secured creditor. Equitable rights upheld.

Case Laws Indian Laws

August 8, 2024

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