Advocates appeared:
For the Appellant(s) : Ms. Praveena Gautam, AOR Mr. Pawan Shukla, Adv. Mr. Aman S. Sharma, Adv. Mr. Aman Rastogi, Adv.
For the Respondent(s): Ms. Pratibha Jain, AOR

The key points from the provided legal document are as follows:

1. The bank has the right to proceed with the sale of the mortgaged property through a public auction to recover outstanding dues unless the borrower deposits the entire amount payable along with all costs incurred by the secured creditor (!) (!) .

2. The borrower cannot be released from the entire liability by depositing only a part of the dues, even if the deposit matches the highest bid received in the auction, unless the full amount of dues, including costs, is paid (!) (!) .

3. The order to release the mortgaged property on partial payment (Rs.65.65 lakhs) is not justified because it does not discharge the entire liability, which was significantly higher at the time of the proceedings (!) (!) (!) .

4. The proceedings initiated under the relevant statutory provisions, including the interim orders, are subject to the condition that the entire dues are paid before the property can be released or the sale finalized (!) (!) .

5. The division of authority between the courts and the secured creditor emphasizes that unless the borrower deposits the full amount due, the bank remains entitled to sell the property and recover the dues (!) (!) .

6. The order to release the property on payment of a lesser amount (Rs.65.65 lakhs) is contrary to the statutory provisions and the principles governing the enforcement of security interests under the relevant Act (!) (!) .

7. The borrower’s offer to deposit a certain amount does not equate to discharging the entire liability; the full dues must be settled for the property to be released (!) .

8. The proceedings under the SARFAESI Act, including auction and possession, are to be carried out in accordance with law, and interim orders do not override the statutory requirement of full payment (!) (!) .

9. The appellate court has restored the earlier orders that restrict the sale of the property until the full dues are paid, emphasizing that partial payments cannot substitute for full settlement of liabilities (!) .

10. In the interim, the borrower is entitled to possession of the property, but the property cannot be transferred or alienated without full payment and finalization of the sale process (!) .

These points collectively underscore that the secured creditor’s right to sell the property and recover dues is protected unless the borrower deposits the full amount owed, including all costs, prior to the sale or transfer of the security interest.