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M. NAGAPRASANNA
T. S. Nataraj S/o Late C. Shivakumar – Appellant
Versus
State Bank of India, Bengaluru – Respondent
ORDER :
1. The petitioners are before this Court calling in question e-auction notice dated 08-09-2021 which was notified to sell the property of the petitioners and have also sought quashment of sale certificate issued in favour of the 4th respondent/auction purchaser and seek consequential direction to consider the case of the petitioners under the OTS scheme.
2. Brief facts that lead the petitioners to this Court in the present petition, as borne out from the pleadings, are as follows:
The right to redeem mortgaged property under the SARFAESI Act is extinguished once the auction notice is published, indicating no entitlement to challenge the sale thereafter.
The main legal point established in the judgment is that the right of redemption of the borrower is not extinguished upon the publication of the auction notice, and the secured creditor has the discr....
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 borrower's right to redeem the mortgage continues until the sale certificate is issued, and the OTS Policy applies retroactively, preventing the bank from proceeding with the sale.
Compliance with statutory notice requirements is imperative in mortgage auctions; failures may invalidate the sale, preserving the mortgagor's right of redemption until formal sale registration.
Procedural violations in auction processes under the SARFAESI Act invalidate proceedings, emphasizing the right of redemption and proper valuation of secured assets.
The principles of mortgage redemption under Section 60 of the Transfer of Property Act apply to secured assets under the SARFAESI Act, and the right of redemption survives until the completion of the....
The main legal point established in the judgment is that the right of redemption of the mortgaged property exists until the date of publication of notice for public auction, and the failure to exerci....
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