https://www.taxtmi.com/caselaws?id=793840 A secured creditor conducting a SARFAESI auction must disclose known encumbrances and material title defects, including where the auctioned asset is only an undivided and undemarcated portion of a larger plot. The court found that the bank was not a passive seller and could not rely on an as-is-where-is or caveat emptor position when material defects were within its knowledge or ought to have been ascertained. It held that failure to make proper disclosure justified cancellation of the sale and refund of the consideration. The writ petition was also held maintainable despite an alternative remedy plea, as the complaint involved clear statutory violation and no disputed factual issues. en-us Wed, 20 May 2026 00:00:00 +0530 Thu, 25 Jun 2026 08:27:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=793840 A secured creditor conducting a SARFAESI auction must disclose known encumbrances and material title defects, including where the auctioned asset is only an undivided and undemarcated portion of a larger plot. The court found that the bank was not a passive seller and could not rely on an as-is-where-is or caveat emptor position when material defects were within its knowledge or ought to have been ascertained. It held that failure to make proper disclosure justified cancellation of the sale and refund of the consideration. The writ petition was also held maintainable despite an alternative remedy plea, as the complaint involved clear statutory violation and no disputed factual issues. Case-Laws Indian Laws Wed, 20 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793840