Confirmed auction sale creates vested right to sale certificate and possession; pending DRT proceedings alone do not justify refusal.

Once a secured asset sale is confirmed and the auction-purchaser pays the full consideration, the purchaser acquires a vested right to the sale certificate and delivery of physical possession. The secured creditor cannot refuse to complete the sale merely because a securitisation application is pending before the DRT, unless there is a competent stay order restraining further action. The statutory scheme under the SARFAESI Act and Rules requires the bank to act on the confirmed sale and complete the consequential steps. On that basis, the objection based on pendency of proceedings was rejected, and issuance of the sale certificate and delivery of possession were directed, subject to the final outcome of the pending application.

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Issues: Whether the bank could refuse to issue the sale certificate and deliver physical possession of the secured asset to the successful auction-purchaser merely because a securitisation application was pending before the Debts Recovery Tribunal and an interim order stated that the auction would be subject to its final outcome.

Analysis: The sale had been confirmed and the auction-purchaser had deposited the entire consideration. In such a situation, the purchaser acquired a vested right to obtain the sale certificate, and the bank was duty-bound to complete the sale and deliver possession in the absence of any stay order restraining it from doing so. The pendency of proceedings before the Debts Recovery Tribunal, by itself, did not justify withholding the certificate or possession. The statutory scheme under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the Security Interest (Enforcement) Rules, 2002, as explained in the cited Supreme Court decision, requires the bank to act in accordance with the confirmed sale and the mandatory consequences flowing from it.

Conclusion: The objection based on pendency of the securitisation application was rejected. The bank was bound to issue the sale certificate and take steps to deliver physical possession to the petitioner.

Final Conclusion: The writ petition succeeded and the petitioner obtained a direction for issuance of the sale certificate and delivery of physical possession, while the relief remained subject to the final outcome of the pending securitisation application.

Ratio Decidendi: Once an auction sale is confirmed and the full sale price is paid, the secured creditor cannot withhold the sale certificate or possession merely because related proceedings are pending, unless there is a competent stay order preventing such action.

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