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SANJAY KUMAR, T.AMARNATH GOUD
Sri. Sai Annadhatha Polymers – Appellant
Versus
Canara Bank Rep. by its Branch Manager, Madanapalle – Respondent
The legal document indicates that under the amended provisions of the SARFAESI Act, the right of the borrower to redeem the secured asset is extinguished upon the publication of the sale notice. Specifically, once the notice for the auction sale is published, the borrower loses the right to exercise redemption. This change signifies a significant departure from the earlier regime, where the right of redemption remained available until the transfer of the asset was completed through registration and delivery of possession.
Therefore, in the current legal framework, the borrower’s ability to redeem the secured asset is only available up to the date of publication of the sale notice, and not beyond. Proper adherence to the statutory procedure, including providing a clear thirty-day notice to the borrower before sale, is essential to preserve this right. Any violation of these procedural requirements, such as publishing the sale notice without the requisite notice period, results in the loss of the right of redemption and affects the validity of the sale process.
SANJAY KUMAR, J.
1. By way of this writ petition, the first petitioner firm and its Managing Partner, the second petitioner, assail the possession notice dated 11.09.2017, issued under Rule 8(1) and the sale notice dated 01.03.2018, issued under Rule 8(6), of the Security Interest (Enforcement) Rules, 2002 (for brevity, the Rules of 2002), by the Canara Bank, Madanapalle Branch, Chittoor District, Andhra Pradesh, (hereinafter, the bank). Interim order dated 14.03.2018 was granted by this Court and it reads as under:
“Though Sri Deepak Bhattacharjee, learned senior counsel representing Sri Dishit Bhattacharjee, learned counsel for the respondent bank, would argue that this writ petition ought not to be entertained as an efficacious alternative remedy is provided to the petitioners under Section 17(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, the SARFAESI Act), and place reliance on the recent judgment of the Supreme Court in State Bank of Travancore vs. Mathew K.C. 2018 SCC Online SC 55 in that regard, as to whether a writ petition should be entertained or not is ultimately a matter of discretion and
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