diff --git a/app/interactions/whois/update.rb b/app/interactions/whois/update.rb
index e00824c44..7b84a46a6 100644
--- a/app/interactions/whois/update.rb
+++ b/app/interactions/whois/update.rb
@@ -8,12 +8,12 @@ module Whois
     def execute
       ::PaperTrail.request.whodunnit = "job - #{self.class.name} - #{type}"
 
-      klass = determine_class
+      collection = determine_collection
 
       Array(names).each do |name|
-        record = find_record(klass, name)
+        record = find_record(collection, name)
         if record
-          Whois::UpdateRecord.run(record: { klass: klass.to_s, id: record.id, type: type })
+          Whois::UpdateRecord.run(record: { klass: collection.to_s, id: record.id, type: type })
         else
           Whois::DeleteRecord.run(name: name, type: type)
         end
@@ -22,7 +22,7 @@ module Whois
 
     private
 
-    def determine_class
+    def determine_collection
       case type
       when 'reserved' then ReservedDomain
       when 'blocked'  then BlockedDomain
@@ -32,8 +32,12 @@ module Whois
       end
     end
 
-    def find_record(klass, name)
-      klass == DNS::Zone ? klass.find_by(origin: name) : klass.find_by(name: name)
+    def find_record(collection, name)
+      if collection == Dispute.active
+        collection.find_by(domain_name: name)
+      else
+        collection == DNS::Zone ? collection.find_by(origin: name) : collection.find_by(name: name)
+      end
     end
   end
 end
diff --git a/app/models/concerns/domain/disputable.rb b/app/models/concerns/domain/disputable.rb
index a70d8b7cf..92c03f768 100644
--- a/app/models/concerns/domain/disputable.rb
+++ b/app/models/concerns/domain/disputable.rb
@@ -21,12 +21,16 @@ module Domain::Disputable
     @in_disputed_list ||= Dispute.active.find_by(domain_name: name).present?
   end
 
+  def in_auction_list?
+    @in_auction_list ||= Auction.find_by(domain: name, status: Auction.statuses[:started]).present?
+  end
+
   def disputed?
     Dispute.active.where(domain_name: name).any?
   end
 
   def validate_disputed
-    return if persisted? || !in_disputed_list?
+    return if persisted? || !in_disputed_list? || in_auction_list?
 
     if reserved_pw.blank?
       errors.add(:base, :required_parameter_missing_disputed)
diff --git a/test/integration/epp/domain/create/base_test.rb b/test/integration/epp/domain/create/base_test.rb
index 63212d2fa..4932c6989 100644
--- a/test/integration/epp/domain/create/base_test.rb
+++ b/test/integration/epp/domain/create/base_test.rb
@@ -814,4 +814,42 @@ class EppDomainCreateBaseTest < EppTestCase
     assert_correct_against_schema response_xml
     assert_epp_response :billing_failure
   end
+
+  def test_registers_disputed_domain_with_password
+    now = Time.zone.parse('2010-07-05')
+    travel_to now
+    disputed_domain = disputes(:active)
+    password = disputed_domain.password
+
+    request_xml = <<-XML
+      <?xml version="1.0" encoding="UTF-8" standalone="no"?>
+      <epp xmlns="#{Xsd::Schema.filename(for_prefix: 'epp-ee', for_version: '1.0')}">
+        <command>
+          <create>
+            <domain:create xmlns:domain="#{Xsd::Schema.filename(for_prefix: 'domain-ee', for_version: '1.2')}">
+              <domain:name>#{disputed_domain.domain_name}</domain:name>
+              <domain:registrant>#{contacts(:john).code}</domain:registrant>
+            </domain:create>
+          </create>
+          <extension>
+            <eis:extdata xmlns:eis="#{Xsd::Schema.filename(for_prefix: 'eis', for_version: '1.0')}">
+              <eis:legalDocument type="pdf">#{'test' * 2000}</eis:legalDocument>
+              <eis:reserved>
+                <eis:pw>#{password}</eis:pw>
+              </eis:reserved>
+            </eis:extdata>
+          </extension>
+        </command>
+      </epp>
+    XML
+
+    assert_difference 'Domain.count' do
+      post epp_create_path, params: { frame: request_xml },
+           headers: { 'HTTP_COOKIE' => 'session=api_bestnames' }
+    end
+    response_xml = Nokogiri::XML(response.body)
+
+    assert_correct_against_schema response_xml
+    assert_epp_response :completed_successfully
+  end
 end