Back
S. MANIKUMAR, SHAJI P. CHALY
K. J. Binu – Appellant
Versus
Secretary, Nedumangad Municipality – Respondent
ORDER :
S. Manikumar, J
Instant review petition is filed seeking to review the judgment of this Court in W.P.(C) No. 19984 of 2020 dated 25/09/2020, by which, having found that there is no merit in the writ petition, the reliefs sought for by the petitioner were rejected and consequently, dismissed the same. Said judgment reads thus:
44. Giving due consideration to the provisions of the SARFAESI Act, 2002, and the rules framed thereunder, we are of the view that the borrower, who had defaulted to pay the loan amount with interest for which, properties are brought for auction, is still the owner of the property and entitled to seek for enforcement of his rights, under the laws in force. Therefore, the 5th respondent, can seek enforcement of his property rights under Article 300A of the Constitution of India.”
2. W.P.(C) No.19984 of 2020 has been filed by the petitioner seeki
The right of redemption under SARFAESI Act is extinguished after the issuance of a sale certificate, rendering claims by lessees during such proceedings legally unsustainable.
A secured creditor retains rights over a property until actual possession is transferred, despite a sale certificate being issued to an auction buyer, as affirmed by the court.
The ownership of a secured asset is retained until a sale certificate is issued, and the interim moratorium under the IBC prevents transfer of possession.
The bank retains the right to recover debts through mortgaged properties even if the borrower sells the property to a third party, as established under the SARFAESI Act, 2002.
Secured creditors must fully deliver the auctioned property and disclose material defects; failure to do so incurs liability for damages, including refunds with interest.
The court emphasized the legislative intent to minimize judicial intervention until the stage of Section 14 of the SARFAESI Act and highlighted the availability of statutory remedies under the Act, h....
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.
The borrower's right of redemption is extinguished upon the publication of the auction notice, allowing the auction purchaser to claim possession.
Mandatory compliance with procedural requirements under the SARFAESI Act is essential; failure to adhere prejudices borrowers' rights and invalidates auction proceedings.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
