The sale of the secured asset in public auction, ending in the issuance of a sale certificate, is a complete and absolute sale for the purpose of the SARFAESI Act. The sale certificate does not require registration, and the right of redemption is not applicable after the sale is confirmed and the sale certificate is issued.

P.D. Dinakaran, J.

These writ appeals have been preferred by the appellant against the common order dated 09.03.2007 of the learned Single Judge made in W.P.(MD)Nos.634 and 635 of 2006.

2. Brief facts, sans unnecessary details, leading to the filing of these writ appeals are stated herein under:-

2.1. The first respondent in both the writ appeals, who have obtained a loan of Rs.10,00,000/-each from the second respondent/bank, are hereinafter referred to as "borrowers". As they defaulted in repayment, the second respondent/bank issued notices dated 19.10.2004 and 01.12.2004 under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for brevity, "SARFAESI Act") to the borrowers, calling upon them to discharge the loan within sixty days.

2.2. As the borrowers have not complied with the said demand, the second respondent/Bank, alleging that as on 31.10.2004, a sum of Rs.10,72,483/-was due from each of them, directed the borrowers to discharge the loan amounts with interest at the rate of 11.75% per annum within a period of sixty days. In replication, the borrowers by representations dated 10.12.2004 and 30.12.2004 requested the second respondent/bank to consider their case for one time settlement. The borrowers invoking Section 17 of the SARFAESI Act filed S.A.Nos.21 and 22 of 2005 before the Debts Recovery Tribunal II, Chennai, challenging the said notices issued by the second respondent/Bank, but the same were dismissed on 28.09.2005.

2.3. In view of the default in discharging the loans by the borrowers, the second respondent/bank, exercising its powers under Section 13(4) of the SARFAESI Act issued the impugned notice dated 14.11.2005 informing the borrowers that constructive possession of the secured assets were taken over by them on 09.02.2005 and the same would be brought for sale after the expiry of 30 days from that date, by way of public auction.

2.4. In the absence of any headway by the borrowers in repayment, the third respondent, who is the authorised officer of the second respondent bank, brought the property for public auction on 19.12.2005.

2.5. On 02.01.2006, the borrowers, however, approached the second respondent/bank and deposited three cheques for a total sum of Rs.25,21,445/-to discharge the amount due and payable in respect of the notices issued to them. The second respondent/Bank, by informing the borrowers that the secured assets have already been sold and the sale was to be confirmed on or before 17.01.2006, returned the cheques on 04.02.2006.

2.6. The borrowers filed I.A.Nos.13 and 14 of 2006 for condoning the delay in filing petitions to restore S.A.Nos.21 and 22 of 2005 and also filed petitions to restore S.A.Nos.21 and 22 of 2005 and for stay of the confirmation of the auction sale. The Debts Recovery Tribunal II, Chennai, by an order-dated 10.01.2006, recording the submission of the second respondent/bank that the auction purchaser had paid the entire sale consideration and sale certificate was issued to him on 06.01.2006, dismissed the applications of the borrowers with liberty to pursue their remedies.

2.7. The borrowers, thereafter, sent a lawyers notice dated 13.01.2006 by enclosing a Demand Draft for a sum of Rs.25,00,000/- drawn in favour of the second respondent/bank. The second respondent bank, after receiving the demand draft, without setting aside the sale, sent another notice-dated 18.01.2006 to the borrowers, directing them to remove the articles found in the secured assets within three days.

2.8. Contending that when the borrowers had paid the entire loan amount, the second respondent/bank cannot proceed with taking of possession of the secured assets, the borrowers filed W.P (MD) Nos.634 and 635 of 2006 for issue of Writ of Certiorarified Mandamus to call for the records of the respondent in respect of the auction of their properties held in pursuance to the auction notice dated 14.11.2005, to quash