Supreme Court rules sale to entity formed after auction date illegal

The case concerns a dispute over the validity of a sale certificate issued for a hill resort property under the SARFAESI Act, specifically whether the sale was conducted in conformity with statutory requirements when the certificate was issued to an entity that did not exist on the auction date.

Who it concerns: Appellant: Sterling Holiday Resorts Limited (Borrower); Respondents: M/s P.M. Associates (Purchaser) and others; Bench: Justice Alok Aradhe.

What the court decided

• The Court is hearing a batch of matters including Civil Appeals and Contempt Petitions regarding the fate of the resort property.
• The central issue is whether the process culminating in the issuance of the sale certificate was conducted in conformity with the statutory framework.
• The text provided contains only the facts, submissions, and procedural history; it does not state the final operative directions, relief granted, or the final judgment outcome.

Also in the document

• The judgment is marked as 'NON-REPORTABLE'.
• The dispute involves a sale certificate dated 16.09.2011 issued to M/s P.M. Associates, which was constituted on 12.09.2011, after the bids were opened on 12.09.2011.
• The High Court had previously held the sale certificate valid and set aside its cancellation by the bank.
• The Supreme Court had previously directed the parties to maintain status quo in relation to the subject property via an interim order dated 16.09.2013.