DRAT sets aside Sale not held under Provisions of SARFAESI Act, Directs LIC Housing Finance to Refund Sale Consideration

The DRAT has "set aside a sale not held under the provisions of the SARFAESI Act" and has "directed LIC Housing Finance to refund the sale consideration." This is a significant ruling that reinforces the principle of procedural fairness in insolvency proceedings. The court's decision, which is a significant victory for the government, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a company can be held responsible for the misdeeds of another person.