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DIPANKAR DATTA, SATISH CHANDRA SHARMA
E. Muthurathinasabathy – Appellant
Versus
Sri International – Respondent
| Table of Content |
|---|
| 1. factual context of the appeals (Para 2 , 3 , 4) |
| 2. high court ruling on auction sale irregularity (Para 5 , 6 , 7 , 8) |
| 3. implications of the auction sale confirmation (Para 9) |
| 4. analysis of procedural compliance and borrowers' rights (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 26 , 27 , 28 , 29 , 30 , 33 , 34) |
| 5. borrowers' right to redeem after full payment (Para 31 , 32 , 35) |
| 6. outcome of the appeals (Para 36 , 37 , 38) |
JUDGMENT
DIPANKAR DATTA, J.
1. Leave granted.
THE APPEALS
2. The two sets of appeals arise out of proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [SARFAESI Act]. Appellants [auction purchasers, hereafter] in the lead appeals are the auction purchasers whereas Central Bank of India [secured creditor, hereafter] is the appellant in the connected appeals. They question the correctness and legality of the common judgment and order dated 12.04.2023 passed by the High Court of Judicature at Madras [firm, hereafter] while deciding Writ Petition Nos. 32958 of 2022 and 32016 of 2022. In substance and in gravamen, the High Court allowed two writ petiti
The auction sale under the SARFAESI Act may be annulled on equitable grounds if procedural delays, not attributable to borrowers, prevent confirmation and violate statutory requirements.
The mortgagor's right of redemption under the amended Section 13(8) of the SARFAESI Act is extinguished upon publication of the auction notice.
The right of redemption is available to the mortgagor until the sale is complete by registration of sale, and the violation of statutory rules may entitle the borrower to redeem the property.
The main legal point established in the judgment is the interpretation of Rule 9(4) and 9(5) of the Security Interest (Enforcement) Rules, 2002, highlighting the requirement for the purchaser to pay ....
Court ruled that non-compliance with SARFAESI rules voided sale; observed that the rights of borrowers can be waived through their conduct and failure to assert them timely.
(1) Auction sale of secured asset – Unless and until a clear 30 days' notice is given to borrower, no sale or transfer can be resorted to by a secured creditor. Secured creditor cannot effect sale or....
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.
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