Encashed Refund Drafts Bar SARFAESI Auction Challenge: Madras High Court Upholds E-Auction Cancellation

14 September 2026 · Reported by Taxscan

The Madras High Court rejected an auction purchaser’s challenge after the purchaser encashed refund drafts issued on cancellation of a SARFAESI e-auction. The ruling affects auction purchasers and lenders because acceptance of refund consideration may defeat later claims to revive or challenge the sale process.

We have not written our own note on this one yet. The source report and, where we found it, the primary document are linked below.

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