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The Supreme Court on 30 September 2026 set aside a Madras High Court judgment and invalidated IFCI Limited's SARFAESI auction of Sterling Holiday Resorts' Fernhill property in Ooty, holding that the sanctity courts give to confirmed auction sales presupposes compliance with the law and cannot protect a sale conducted in breach of mandatory procedure. A Bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe found that IFCI had received a bid while a Debts Recovery Appellate Tribunal restraint order was in force, concluded the sale before the mandatory 30 day redemption notice period under the Security Interest (Enforcement) Rules, 2002 had run out, and issued the sale certificate to a partnership firm that did not exist on the date fixed for the auction. The Court allowed the borrower's appeals and dismissed the purchaser's, ruling that no sanctity in law attaches to an auction conducted in such defiance of the SARFAESI Act's safeguards.