AGARWAL TRACOM PVT. LTD. vs PUNJAB NATIONAL BANK

The Supreme Court upheld the application of Section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) by Punjab National Bank (PNB) to forfeit the deposit of the appellant due to non-payment of the sale amount as per the memorandum of understanding. The Court clarified that the appellant's failure to comply with the payment terms justified PNB's actions, and the dismissal of the appellant's writ petition by the High Court was affirmed. The judgment reinforces the enforceability of auction sale agreements under the SARFAESI Act.