The right to redeem mortgaged property under Section 13(8) of the SARFAESI Act is extinguished upon the publication of a sale notice, as amended in 2016.

ORDER :

The petitioners are before this Court calling in question orders dated 08-03-2023 and 15-03-2023 passed by the Debts Recovery Tribunal-II, Bengaluru (hereinafter referred to as ‘the Tribunal’ for short) in S.A.No.114 of 2023 insofar as it refuses to consider the interim relief sought in the appeal on applications in I.A.No.1 of 2023 and I.A.No.2 of 2023 filed by the petitioner and have sought consideration of the interim relief sought before the Tribunal.

2. Facts in brief, germane are as follows:-

The 2nd petitioner is the borrower and the 1st respondent is the lender. The 2nd petitioner borrows an amount of Rs.1,70,00,000/- on 14-08-2015 on mortgage of the scheduled property owned by his father, petitioner No.1. The loan was regular up to a certain point and became sticky in the year 2018. It is then the Bank sought to initiate proceedings invoking the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (‘the Act’ for short) in respect of the schedule property by issuing a notice as is required under sub-sections (2) and (4) of Section 13 of the Act. When the amount was left unpaid despite all efforts, the Bank notifies the schedule property for sale in terms of its notification dated 10-10-2019. This is called in question by the 2nd petitioner before this Court in Writ Petition No.50465 of 2019 wherein the petitioner sought a direction by issuance of a writ in the nature of mandamus to consider his representation for restructuring of the loan. Writ Petition comes to be disposed of on 19-11-2019 after noticing the reply to the representation of the petitioner. Therefore, the said sale did not take place in the light of the interim order operating in the aforesaid petition.

3. A fresh sale notice was issued on 23-08-2021 bringing the property again to sale fixing the sale on 14-09-2021. This is called in question before the Tribunal in S.A.No.1298 of 2021 in an appeal filed on 09-09-2021. The Tribunal does not grant any relief. The auction takes place on 14-09-2021 for a bid amount of Rs.2,01,25,000/-. The auction purchaser immediately deposits 25% of the bid amount. The auction purchaser then pays the entire balance amount that was to be paid. The possession of the schedule property is still with the petitioners. This action of sale is challenged by the 2nd petitioner before this Court in W.P.No.19957 of 2021. This Court in terms of its order dated 11-11-2021 permits the petitioner to deposit Rs.30,00,000/- and stalled further proceedings. Writ Petition No.19957 of 2021 is disposed of directing the petitioner to pay the entire loan amount with all interest with an outer limit of 8 weeks and also pay Rs.25,00,000/- as solatium to the auction purchaser, failing which the Court directed the Bank to issue sale certificate. This was an order passed on consent. Against the said order, a writ appeal comes to be filed by the 2nd petitioner in Writ Appeal No.1045 of 2022 and the petitioner would withdraw the writ appeal reserving liberty to fulfill the order passed by the learned single Judge. The order was not complied. On 27-10-2022 a sale certificate is also issued in favour of the 2nd respondent and the same is registered on 03-01-2023.

4. The Bank then seeks to take possession of the property. Petitioner No.1, father of petitioner No.2 files another writ petition in W.P.No.4965 of 2022 seeking quashment of the possession order in Crl.Mis.No.1471 of 2019. On 12-12-2022 the time to comply the interim order passed in Writ Petition No.19957 of 2021 was extended by three more weeks. Writ Petition No.4965 of 2022 comes to be dismissed on 13-02-2023 reserving liberty to the petitioner to challenge the sale certificate that was issued to the auction purchaser before the appropriate forum. It is then, the petitioners filed S.A.No.114 of 2023. The Tribunal on 8-03-2023 directs servin