Bombay High Court: SARFAESI Sale Invalid If Sale Certificate Not Issued Before IBC Moratorium

The Bombay High Court has held that a SARFAESI auction sale is incomplete if an interim moratorium under Section 96 IBC begins before the sale certificate is issued.

The Court ruled that ownership transfers only upon issuance of the sale certificate, and payments made after the moratorium cannot confer rights.

Since most instalments and the sale certificate in this case came after the moratorium, the auction purchaser acquired no ownership.

The writ petition was dismissed.

[Arrow Business Development Consultants Pvt Ltd v. Union Bank of India & Ors.]