In a landmark judgement dated 13 December 2024, in Contempt Petition No. 158-159 / 2024 in Civil Appeal No. 5542 – 5543 / 2023 – M/s Celir LLP v Mr. Sumati Prasad Bafna & Ors, the Supreme Court of India upheld the sanctity of the auction process as envisaged by the SARFAESI Act in pursuance to its judgement dated 21 September 2023 passed in Civil Appeal No. 5542 – 5543 / 2023 – M/s Celir LLP v Bafna Motors (Mumbai) Private Limited, confirmed the sale of the secured asset and title through the sale certificate. The Supreme Court of India has inter alia observed that the contempt jurisdiction cannot be formulated by a rigid approach merely because there is no prohibitory order or specific direction issued and the same would not mean that the parties cannot be held guilty of contempt.
This judgement safeguards the rights of an auction purchaser who is vexatiously and strategically embroiled in litigation.
