Whether auction sale of the secured asset ‘at the reserve price’, without obtaining the consent of the borrower violates the proviso to Rule 9 (2) of the Security Interest (Enforcement) Rules, 2002? – Praveen Prakash Mahtani Vs. Punjab National Bank and Ors. – DRAT Mumbai
January 10, 2025
A ‘reserve price’ is fixed to notify the public at large and the participating bidders that the subject property will not be sold for a price less than the reserve price. Understanding the concept behind the fixation of a reserve price, it has to be observed that the bid should begin at the reserve price.