Searching Case Laws & Precedent on Legal Query.....!
Analysing the retrieved Case Laws
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query.....!
Analysing the retrieved Case Laws
Scanned Judgements…!
As is where is basis in property auction - The property is sold with all existing rights, liabilities, and encumbrances transferred to the purchaser, with no further liability on the part of the seller (bank or authority). Buyers are expected to conduct independent due diligence regarding title, dues, and encumbrances before bidding. The sale terms explicitly state that the property is sold as is where is and whatever there is basis, meaning the seller does not guarantee the condition or clear title of the property. South Indian Bank Limited VS Jac Olivol Products Private Limited - Calcutta, Simranjeet Singh Punj VS Bank of India, Government of India Undertaking Vasavinagar Branch - Telangana, Canara Bank VS Shilpee Housing Development Private Limited - Jharkhand, Jayshree Kailash Wani VS Official Liquidator - Allahabad, In Ref. Maheshwari Proteins Ltd. VS Recd. From Bifr New Delhi - Madhya Pradesh
Implication of as is where is sale - The auctioned property is considered to have existing defects or encumbrances, which the buyer accepts upon bidding. Buyers are responsible for verifying title and conditions beforehand, as the auction process does not entail disclosure of all issues. This clause limits the seller's liability and emphasizes due diligence by bidders. South Indian Bank Limited VS Jac Olivol Products Private Limited - Calcutta, Simranjeet Singh Punj VS Bank of India, Government of India Undertaking Vasavinagar Branch - Telangana, Canara Bank VS Shilpee Housing Development Private Limited - Jharkhand, Jayshree Kailash Wani VS Official Liquidator - Allahabad, In Ref. Maheshwari Proteins Ltd. VS Recd. From Bifr New Delhi - Madhya Pradesh
Legal and procedural context - Courts and tribunals have upheld that properties sold on this basis transfer all encumbrances and liabilities to the purchaser, and such sales are generally not subject to annulment unless there is misrepresentation or fraud. The as is where is condition is recognized as a standard auction term, and buyers participate with the understanding of its implications. Simranjeet Singh Punj VS Bank of India, Government of India Undertaking Vasavinagar Branch - Telangana, Canara Bank VS Shilpee Housing Development Private Limited - Jharkhand, Jayshree Kailash Wani VS Official Liquidator - Allahabad, In Ref. Maheshwari Proteins Ltd. VS Recd. From Bifr New Delhi - Madhya Pradesh
Specific case references - Several cases mention properties sold at auction on this basis, with purchasers accepting the terms and being aware of potential defects or encumbrances. In some instances, the courts have dismissed challenges to such sales, reaffirming that bidders assume the risks associated with as is where is sales. South Indian Bank Limited VS Jac Olivol Products Private Limited - Calcutta, Simranjeet Singh Punj VS Bank of India, Government of India Undertaking Vasavinagar Branch - Telangana, Canara Bank VS Shilpee Housing Development Private Limited - Jharkhand, Jayshree Kailash Wani VS Official Liquidator - Allahabad, In Ref. Maheshwari Proteins Ltd. VS Recd. From Bifr New Delhi - Madhya Pradesh
Analysis and Conclusion:Property auctions conducted on an as is where is and whatever there is basis transfer all existing rights, liabilities, and encumbrances to the buyer. Bidders are expected to perform independent due diligence before bidding, as the seller does not guarantee the property's condition or title. Courts generally uphold such sales, emphasizing the importance of transparency and the buyer's awareness of the risks involved. This standard auction clause aims to limit the seller's liability and ensure that the buyer accepts the property in its current state.
In the world of real estate, property auctions offer a fast track to acquiring assets, often at attractive prices. However, the phrase as is where is basis property auction raises critical questions for potential bidders. What does this term truly mean? Does it transfer all liabilities to the buyer? This blog post dives deep into the legal implications, drawing from court precedents and key principles to help you navigate these sales confidently.
Typically conducted under frameworks like the SARFAESI Act or court orders, these auctions sell properties in their current condition—complete with any defects, dues, or encumbrances. Buyers assume full responsibility, guided by the caveat emptor (buyer beware) doctrine. But what are the real risks, and how can you protect yourself? Let's break it down.
The term as is where is signifies that the buyer accepts the property in its current state, including all existing rights, obligations, and liabilities. This principle has been upheld in various legal precedents, establishing the responsibilities of auction purchasers. Properties are sold on this basis, often stated as as is where is, as is what is, and whatever there is basis, meaning the seller (like a bank or authority) disclaims any guarantees on condition or title. South Indian Bank Limited VS Jac Olivol Products Private Limited - CalcuttaSimranjeet Singh Punj VS Bank of India, Government of India Undertaking Vasavinagar Branch - Telangana
For instance, auction notices explicitly warn: The property was put on auction-sale on 'as is where is basis', 'as it is where it is basis' and 'whatever there is basis', for realisation of Bank's dues with interest.Kumar Rohit, Son of Sri Lalmani Nath Shahdeo VS Allahabad Bank, through its Chairman-cum-Managing Director, Kolkata - 2016 Supreme(Jhk) 941 - 2016 0 Supreme(Jhk) 941
This setup limits the seller's liability and shifts the burden to bidders for independent verification.
Auction purchasers are generally liable for outstanding dues tied to the property. This includes electricity dues, where courts have ruled that buyers must clear previous bills before new connections. The Assam Electricity Regulatory Commission regulations support this, as affirmed in precedents. Borah and Company VS Assam Power Distribution Company Ltd. - Gauhati
Courts emphasize: The auction purchaser cannot escape liabilities associated with the property, as they are assumed to have accepted all encumbrances upon purchase.Medineutrina Pvt. Ltd. (Company) Through its Director - Dilipkumar VS District Industries Centre (D. I. C. ), Udyog Bhavan, Nagpur - BombayK. C. Ninan VS Kerala State Electricity Board - Supreme Court
In another case, the writ petitioner purchased the property in an auction sale on 'as is where is' basis... the writ petitioner/auction purchaser has had no possible nexus whatsoever with the defaulting consumer. Yet, liability often persists. Rashidhan Sales Private Limited VS Damodar Valley Corporation - 2023 Supreme(Cal) 83 - 2023 0 Supreme(Cal) 83
Buyers must conduct thorough due diligence before bidding. Caveat emptor applies rigorously—ignorance of defects or encumbrances is no defense. Buyers are expected to conduct due diligence and inspect the property before bidding.ISHWAR CHAND JAIN VS PUNJAB NATIONAL BANK - DelhiRaiganj Consumer Forum VS Union Of India - Supreme Court
Failure to resolve ambiguities in documents doesn't absolve buyers. Courts hold: Any interested bidder is expected to apprise himself of the status of the property for which a specific provision of Clause-20 has also been made in the same E-auction notice.Kumar Rohit VS Allahabad Bank through its Chairman-cum-Managing Director - 2016 Supreme(Jhk) 814 - 2016 0 Supreme(Jhk) 814
The property is advertised widely, as in The property offered was on 'as is where is' and 'as is what is' basis. The sale of the property was advertised in two local newspapers...Ram Omprakash Patil VS Secretary , Govt. of India - 2023 Supreme(Bom) 1925 - 2023 0 Supreme(Bom) 1925
Auction notices must accurately disclose status, including litigation or encumbrances. Misrepresentation can lead to refunds or damages under the Indian Contract Act, 1872. In a case where the bank misrepresented its possession of the property, the court found that such misrepresentation constituted a breach of contract.Ku Chih Choi VS Central Bank Of India - Calcutta
However, standard terms like The auction proceedings were held on 'as is where is basis' meaning thereby, the auction purchaser would get right, ownership and title over the property on as is where is basis and subject to his tenancy. are upheld if transparent. PAWAN KUMAR PODDAR VS BANK OF INDIA, RANCHI MAIN BRANCH, RANCHI - 2016 Supreme(Jhk) 1673 - 2016 0 Supreme(Jhk) 1673
While the rule is strict, exceptions exist. Courts may rule purchasers non-liable for past owner's dues in specific scenarios, such as auctions by official liquidators or under statutory provisions. In some cases, courts have ruled that auction purchasers are not liable for the previous owner's dues, particularly in contexts where the auction was conducted by an official liquidator.SOUTHERN POWER DISTRIBUTION COMPANY OF TELENGANA LTD. THROUGH ITS CMD VS GOPAL AGARWAL - Supreme Court
Additionally, challenges succeed if fraud or gross misrepresentation occurs, like Inspite of the report, the property was put to auction on 04.05.2011 ‘as is where is, basis.’ At the time of fixing the auction, the Bank was aware of the fact that the mortgaged property no longer exists.Punjab National Bank, New Delhi VS Surinder Pal - 2018 Supreme(P&H) 2578 - 2018 0 Supreme(P&H) 2578
The implication of as is where is sale - The auctioned property is considered to have existing defects or encumbrances, which the buyer accepts upon bidding. Courts dismiss most challenges, reaffirming bidder awareness. Simranjeet Singh Punj VS Bank of India, Government of India Undertaking Vasavinagar Branch - TelanganaCanara Bank VS Shilpee Housing Development Private Limited - Jharkhand
Numerous cases reinforce these principles. On behalf of the bank, it was contended that symbolic possession of the property had been taken over and the offer of the auction purchaser was accepted on an 'as is where is and 'as is what is basis'.K.R. Ushasree W/o B. Mohanchandran Nair vs Indian Bank, Rep. by Branch Manager, Kollam Branch - 2025 Supreme(Ker) 2745 - 2025 0 Supreme(Ker) 2745
Transparency is key: An auction of a property is possibly one of the most transparent methods by which the property can be sold.Saptak Trade Link Private Limited VS Chief Controlling Revenue Authority - 2023 Supreme(Guj) 506 - 2023 0 Supreme(Guj) 506
Bidders assume risks, as the property in question is being auctioned on 'As is where is... with no post-sale remedies absent fraud. Kumar Rohit VS Allahabad Bank through its Chairman-cum-Managing Director - 2016 Supreme(Jhk) 814 - 2016 0 Supreme(Jhk) 814
To mitigate risks:- Conduct Thorough Due Diligence: Verify title, dues (electricity, property tax), and encumbrances via official records.- Review Auction Notices Carefully: Note all terms like as is where is and clauses on inspection.- Seek Professional Advice: Consult lawyers or valuers before bidding—don't rely solely on auction details.- Understand Possession Types: Symbolic possession may mean tenants or occupants remain. K.R. Ushasree W/o B. Mohanchandran Nair vs Indian Bank, Rep. by Branch Manager, Kollam Branch - 2025 Supreme(Ker) 2745 - 2025 0 Supreme(Ker) 2745
Buyers are responsible for verifying title and conditions beforehand, as the auction process does not entail disclosure of all issues.Jayshree Kailash Wani VS Official Liquidator - AllahabadIn Ref. Maheshwari Proteins Ltd. VS Recd. From Bifr New Delhi - Madhya Pradesh
'As is where is' property auctions transfer all existing liabilities to buyers, emphasizing personal due diligence over seller warranties. While courts generally uphold these sales—Courts and tribunals have upheld that properties sold on this basis transfer all encumbrances and liabilities to the purchaserSimranjeet Singh Punj VS Bank of India, Government of India Undertaking Vasavinagar Branch - Telangana—exceptions for misrepresentation provide safeguards.
Key takeaways:- Always inspect and investigate independently.- Be aware of dues and tenancies.- Challenge only on grounds of fraud, not post-bid discoveries.
This is general information based on precedents like Borah and Company VS Assam Power Distribution Company Ltd. - Gauhati, Medineutrina Pvt. Ltd. (Company) Through its Director - Dilipkumar VS District Industries Centre (D. I. C. ), Udyog Bhavan, Nagpur - Bombay, ISHWAR CHAND JAIN VS PUNJAB NATIONAL BANK - Delhi, SOUTHERN POWER DISTRIBUTION COMPANY OF TELENGANA LTD. THROUGH ITS CMD VS GOPAL AGARWAL - Supreme Court, Ku Chih Choi VS Central Bank Of India - Calcutta, Raiganj Consumer Forum VS Union Of India - Supreme Court, and others. It is not specific legal advice; consult a qualified attorney for your situation. By staying informed, you can bid smarter and avoid costly surprises in property auctions.
#AsIsWhereIsAuction, #PropertyAuctionLaw, #LegalDueDiligence
By reiterating the contention that the property will be sold on “as is where is” basis and “whatever there is” basis clearly indicates that the bank had no further liability after the sale was concluded to pay the property tax due in respect of the property. ... When a property is sold on “as is where is” basis, encumbrances on the property stands tran....
That the auction is on “As is where is” and “As is what is” and “whatever there is” basis. 2. ... (If the auction is conducted by inviting bids) “That the bide shall be opened in presence of bidders attending the auction sale. The property will be sold to the highest bidder. ... In that case, an argument was advanced by the Bank that the property was sold on 'as is where is' ba....
During the recovery proceeding, the property as detailed has been put on auction. ... “As is where is basis” is a stipulation regarding the patent defect existing in the property to be auctioned. No clear cut stipulation has been made in the bid of auction to the effect that the bidder should himself verify the title and other defects of the property to be auctioned. ... terms of the #H....
The said auction was carried out and as no borrower had come forward to purchase the said property, the State had purchased the said property for Re.1/- and the auction was also confirmed by the order of the competent authority on 3.3.2003. ... The action of the State in purchasing the property at an auction conducted by themselves for a price of Re. 1/- is nothing but confiscation of th....
(In Liquidation) situated at Village Dariyapur, District -Raebareilly (U.P.) will be put to sale on "as is where is basis and whatever there is basis" through e-auction. ... The terms and the conditions of the e-auction itself contained a stipulation that the auction was “AS IS WHERE IS AND WHATEVER THERE IS BASIS” and it would be deemed that by submitting the bid request the bidder has ....
basis of some representations made by third party on the ground that the value of the property might have been much more. ... The property offered was on "as is where is" and "as is what is" basis. The sale of the property was advertised in two local newspapers viz; (i) Voice of Vidharbha; and (ii) Times of India, Nagpur Edition, both of which have wide circulation in Akola District. ... is not open to se....
Therefore, it cannot be an issue that whether the suit property is a joint paternal property inasmuch as claim of the plaintiff is based on an alleged fact of sale of the suit property in an court auction during the days of their fathers, purchase of the suit property by the defendant from the auction ... Whether the learned lower courts below illegally came to a conclusion without frami....
said proceeding, the property was sold in auction. ... On behalf of the bank, it was contended that symbolic possession of the property had been taken over and the offer of the auction purchaser was accepted on an 'as is where is and 'as is what is basis. ... contention of the bank that the property was put to auction on “as is where is” and “as is what is” condition. .....
If one may say, it is, in fact, a reflection on the manner in which the transfer of an immovable property takes place as the price obtainable in a transparent manner would be different. An auction of a property is possibly one of the most transparent methods by which the property can be sold. ... An auction of a property is possibly one of the most transparent methods. Even the Court mon....
when even in the auction notice dated 19-4-2017, the property was sold on as is where is basis and thereafter its symbolic possession was taken on 10-3-2022, specifically mentioning “as is where is possession and whatsoever there is basis”. ... From the record, it is found that the auction purchaser has purchased the property on “as is where is possession and whatsoever there is #HL_STAR....
Thus, the basic pre-requisite of Regulation 3.4.2, applicable to new and subsequent consumers or intending consumers, that is, nexus, is not established at all. In the present case, the writ petitioner purchased the property in an auction sale on 'as is where is' basis. At the juncture when the sale took place and/or prior thereto, when the default was committed by the borrower, the writ petitioner/auction purchaser has had no possible nexus whatsoever with the defaulting con....
The auction-purchasers were made to deposit the money. 4. Inspite of the report, the property was put to auction on 04.05.2011 ‘’as is where is, basis.’ At the time of fixing the auction, the Bank was aware of the fact that the mortgaged property no longer exists as secured property has already been sold and ownership thereof is transferred. No. 1 to 5 were successful bidders and the property was sold to them for Rs.44,40,000/-. Inspite of this, by relying upon tech....
The property was put on auction-sale on "as is where is basis", "as it is where it is basis" and "whatever there is basis", for realisation of Bank's dues with interest. 6. Briefly stated, E-auction notice dated 01.03.2016 was issued for "sale of immovable property mortgaged to Bank under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002", which comprised land and building constructed over MIG-D-120, Harmu Housing Colony, Arg....
There is no misrepresentation, so far that is concerned. Any interested bidder is expected to apprise himself of the status of the property for which a specific provision of Clause-20 has also been made in the same E-auction notice. 8. I have considered the submissions of the parties in the light of the relevant material facts pleaded and referred to herein-above. As is apparent from the E-auction sale notice (Annexure-1) itself, property in question is being auctioned on “As is wher....
The auction proceedings were held on "as is where is basis" meaning thereby, the auction purchaser would get right, ownership and title over the property on as is where is basis and subject to his tenancy. As a matter of fact noticed herein above, petitioner claims setting aside of auction to establish his ownership of only 3 Kathas of the auction sold property out of total 15 kathas of the tenanted plot.
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