Celir LLP vs Bafna Motors (Mumbai) Pvt. Ltd.

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2023 Supreme(SC) 977

D. Y. CHANDRACHUD, J. B. PARDIWALA
Celir LLP – Appellant
Versus
Bafna Motors (Mumbai) Pvt. Ltd. – Respondent

Advocates appeared:
For the Appellant(s) : Mr. Mahesh Agarwal, Adv. Mr. Rishi Agrawala, Adv. Mr. Ankur Saigal, Adv. Ms. Anwesha Padhi, Adv. Mr. Chirag Nayak, Adv. Mr. Robin Fernandes, Adv. Ms. Diksha Rai, Adv. Mr. Kunal Mehta, Adv. Ms. Ira S. Mahajan, Adv. Ms. Roopali Lakhotia, Adv. Mr. E. C. Agrawala, AOR
For the Respondent(s): Mr. Ishaan George, AOR

Judgement Key Points

The right of redemption of a mortgaged property generally exists until the sale is finalized through a registered transfer or conveyance (!) . Under the amended SARFAESI Act, this right is considered to be extinguished once the auction notice is published (!) . After publication of the notice, the mortgagor's opportunity to redeem is waived or deemed waived, and the sale process proceeds to completion (!) (!) .

Table of Content
1. common issues in the appeals arise from the same underlying facts. (Para 1 , 2 , 3)
2. discussion of the borrower's financial situation and auction processes. (Para 4 , 5 , 6 , 7 , 8 , 9 , 10)
3. arguments regarding the law on redemption rights. (Para 22 , 23 , 34 , 35 , 36)
4. conclusion directing bank actions following auction. (Para 106 , 108)

JUDGMENT :

J.B. PARDIWALA, J.

For the convenience of the exposition, this judgment is divided in the following parts:
(A)	Factual Matrix
(B)	Submissions on behalf of the Appellant
(C)	Submissions on behalf of the Borrowers
(D)	Questions of Law falling for the determination of the Court
(E)	Legislative History and Scheme of the SARFAESI Act
(F)	Redemption of Mortgage under Section 60 of the Transfer of Property Act, 1882
(G)	Redemption of Mortgage under the SARFAESI Act
(H)	Effect of the Amendment to Section 13 (8) of the SARFAESI Act
(I)	Why the decision of the Telangana High Court in the case of Amme Srisailam vs. Union Bank of India, Region

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2023 Supreme(SC) 977

D. Y. CHANDRACHUD, J. B. PARDIWALACelir LLP – AppellantVersusBafna Motors (Mumbai) Pvt. Ltd. – Respondent

D. Y. CHANDRACHUD, J. B. PARDIWALA
Celir LLP – Appellant
Versus
Bafna Motors (Mumbai) Pvt. Ltd. – Respondent