SARFAESI sale purchaser entitled to refund with interest when physical possession was not delivered

A purchaser of immovable property sold under the SARFAESI framework had paid the full sale consideration and received the sale certificate, but physical possession was not delivered. Where the record showed no subsisting order preventing refund, indefinite deferment of possession was treated as unsustainable. The transaction was regarded as commercial because the bank sold the property in the ordinary course of business, supporting interest on the refunded amount. The purchaser was entitled to refund of the full purchase price with interest at 12% per annum from the date of payment until realisation, together with costs.

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Issues: Whether the purchaser of an immovable property sold under the SARFAESI mechanism was entitled to refund of the purchase price with interest where physical possession was not delivered.

Analysis: The purchaser had paid the entire sale consideration and sale certificate had been issued, but physical possession was not handed over. The record did not disclose any subsisting order preventing the bank from refunding the money with interest. The attempt to defer delivery of possession indefinitely was held unsustainable. As the sale was conducted by the bank in the ordinary course of its business under the SARFAESI framework, the transaction was treated as commercial, justifying award of interest on the refunded amount.

Conclusion: The purchaser was held entitled to refund of the full purchase price with interest at 12% per annum from the date of payment until realization, along with costs.

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