Swastik Agency and Others v. State Bank of India, Main Branch, Bhubaneswar, and Others, AIR 2009 Ori 147

 

Citation: Swastik Agency and Others v. State Bank of India, Main Branch, Bhubaneswar, and Others, AIR 2009 Ori 147.

Key Legal Principles Established:

1. Strict Adherence to Procedural Requirements:
• The court emphasized that secured creditors must strictly comply with the procedural mandates of the SARFAESI Act, including proper service of notices to all concerned parties.
2. Validity of Auction Sales:
• The judgment highlighted that any deviation from the prescribed procedures, such as inadequate notice or improper valuation, could render the auction sale of secured assets invalid.

This ruling underscores the necessity for financial institutions to meticulously follow the SARFAESI Act's provisions to ensure the enforceability of their actions concerning secured assets.