The DRT Chandigarh annulled a SARFAESI auction due to the bank's failure to provide a mandatory notice to legal heirs, highlighting compliance with statutory notice requirements.
SARFAESI Auction Quashed
The Debt Recovery Tribunal (DRT) in Chandigarh has quashed a property auction conducted under the SARFAESI Act on the grounds that the bank failed to serve a 15-day notice to the legal heirs of the debtor prior to the sale. This ruling accentuates the necessity for strict adherence to notification requirements as a prerequisite for auction proceedings.
The DRT noted that compliance with notice provisions is essential to protect the rights of all stakeholders involved, particularly the legal heirs, who must be adequately informed of the proceedings that may affect their interests. The tribunal emphasized that oversight in providing due notice can lead to the invalidation of auction processes.
This judgment signals to practitioners the importance of ensuring robust compliance with notice requirements under the SARFAESI Act to mitigate legal risks during recovery efforts.
Citations
- DRT Chandigarh (2026) DRT
