The judgment clarifies that under Section 13(8) of the SARFAESI Act, a borrower's right to redeem a secured asset remains until registration of the sale certificate and delivery of possession.

ORDER

Leave granted.

2. The appellant has assailed the order dated 24.08.2017 passed by the High Court of Punjab and Haryana at Chandigarh, whereby the High Court dismissed the Writ Petition filed by the appellant praying for quashing of an order dated 10.04.2015 passed by the Debt Recovery Appellate Tribunal by which the Tribunal had allowed the appeal of the Borrower/Respondent Nos. 2 and 3 and permitted redemption of mortgage property. The appellant had also prayed for handing over of vacant possession of the plot in question.

3. The appellant was the auction purchaser in proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (for short, 'the SARFAESI Act') of the mortgaged property belonging to Borrowers/Respondent Nos. 2 and 3, which was secured with the Bank/Respondent No.1.

4. The appellant had deposited the entire auction money of Rs.70,05,000/- on 31.03.2010, whereafter the sale was confirmed on 02.04.2010 and the sale certificate was issued on 08.04.2010. However, in the meantime on 05.05.2010, the Borrowers/Respondent Nos.2 and 3 deposited the entire amount outstanding with the Bank/Respondent No.1 and thereafter applied for redemption.

5. The admitted fact further is that the sale certificate issued was not registered and possession of the auction property was not handed over to the appellant and the same remained with the Borrowers/Respondent Nos. 2 and 3.

6. The Bank has already issued a No Objection Certificate to the Borrowers/Respondent Nos. 2 and 3 against the loan account.

7. The auction money has remained with the Bank and, according to the learned counsel for the Bank, the same was invested in a fixed deposit and as on 02.07.2023, the said amount, with accrued interest, is now valued at Rs.1,25,99,674/-.

8. In the meantime, further interest has also accrued on the said amount.

9. The Bank/Respondent No.1 having received the entire outstanding loan amount from the borrowers would, therefore, not have any claim over the auction money deposited by the appellant along with the accrued interest.

10. Both, learned counsel for the appellant as also the respondent Nos. 2 and 3, have placed reliance upon a judgment of this Court dated 21.09.2023 passed in Civil Appeal Nos.5542-5543 of 2023, titled 'Celir LLP vs. Bafna Motors (Mumbai) Pvt. Ltd. & Ors'. (Neutral Citation 2023 INSC 838).

11. Learned counsel for the appellant has placed reliance upon the conclusion that is recorded in paragraph 105(ii), whereas, learned counsel for the Borrowers/Respondent Nos.2 and 3 has placed reliance upon paragraph 105(iii), which read as follows :

"(ii) the confirmation of sale by the Bank under Rule 9(2) of the Rules of 2002 invest the successful auction purchaser with a vested right to obtain a certificate of sale of the immovable property in form given in appendix (V) to the Rules i.e., in accordance with Rule 9(6) of the SARFAESI.

(iii) In accordance with the unamended Section 13(8) of the SARFAESI Act, the right of the borrower to redeem the secured asset was available till the sale or transfer of such secured asset. In other words, the borrower's right of redemption did not stand terminated alive till the transfer was completed in favour of the auction purchaser, by registration of the sale certificate and delivery of possession of the secured asset. However, the amended provisions of Section 13(8) of the SARFAESI Act, make it clear that the right of the borrower to redeem the secured asset stands extinguished thereunder on the very date of publication of the notice for public auction under Rule 9(1) of the Rules of 2002. In effect, the right of redemption available to the borrower under the present statutory regime is drastically curtailed and would be available only till the date of publication of the notice under Rule 9(1) of the Rules of 2002 and not till the completion of the sale or transfer of the secured asset in favour of the auction purchaser."

12. The net re