Govind Kumar Sharma vs Bank Of Baroda

The Supreme Court upheld the decision of the Debt Recovery Tribunal (DRT) and the Debt Recovery Appellate Tribunal (DRAT) to set aside the auction sale under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) due to non-compliance with statutory procedures, specifically Rules 8(6) and 8(7) of the Security Interest (Enforcement) Rules, 2002. The Court confirmed that the appellants, who were tenants turned auction purchasers, could not claim ownership without proper notice being served to the borrower. The appeal was dismissed, affirming the lower courts' rulings regarding the auction sale's invalidity and the Bank's obligation to refund the auction money with interest only after regaining possession of the property.