If someone has been called upon to participate in the bidding process, the facts must be made clear to the parties – Mohd. Shariq Vs. Punjab National Bank and Others – Supreme Court
Hon’ble Supreme Court held that the appellant has come with the bona fide defence that he was never informed on the date when the auction was held or day thereafter that the substantive proceedings are pending before the DRT instituted at the instance of the borrower. As a man of ordinary prudence, if someone has been called upon to participate in the bidding process, the facts must be made clear to the parties for the reason that there is always a high variance between market realizable value and the distress value of the mortgaged property when put to public auction under the provisions of the SARFAESI Act, 2002.