Auction sale completed before moratorium remains valid, and mortgaged properties stay outside the corporate debtor's liquidation estate.

An auction sale of mortgaged properties completed before the moratorium date was treated as valid and concluded, so the properties could not be brought into the liquidation estate of the corporate debtor. The Court noted that the factual position on prior completion of the sale was undisputed at hearing, and no defect was shown in the issue or forwarding of the sale certificate. It relied on the settled rule that the authorised officer must hand over a duly validated sale certificate to the auction purchaser and forward a copy to the registering authority under the Registration Act.

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Issues: Whether the auction sale of the mortgaged properties stood concluded before commencement of moratorium and whether the sale certificate issued thereon could be treated as invalid so as to bring the properties within the liquidation estate of the Corporate Debtor.

Analysis: The sale was found to have been completed before the moratorium date, and the parties before the Court did not dispute that factual position at the time of hearing. In the absence of any demonstrated defect in the issue or forwarding of the sale certificate, the Court relied on the settled position that the authorised officer was required to hand over the duly validated sale certificate to the auction purchaser and forward a copy to the registering authority in terms of the Registration Act.

Conclusion: The auction sale was accepted as valid and concluded prior to moratorium, and the subject properties could not be treated as liquidation assets of the Corporate Debtor.

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