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HIGH COURT OF JUDICATURE AT ALLAHABAD, LUCKNOW BENCH
ALOK MATHUR
Girija Prasad Ojha – Appellant
Versus
State Of U.P., Thru Collector Faizabad – Respondent
| Table of Content |
|---|
| 1. overview of the auction proceedings and loan repayment history. (Para 2 , 3 , 4 , 5 , 6 , 7) |
| 2. arguments regarding the right of redemption and auction validity. (Para 8 , 9 , 10 , 11) |
| 3. court's reasoning on the validity of auction confirmation. (Para 12 , 16 , 17 , 18 , 19) |
| 4. explanation of the legal principle regarding right of redemption. (Para 20 , 21) |
| 5. final ruling on the dismissal of the writ petition. (Para 22 , 23) |
JUDGMENT :
Alok Mathur, J.
C. M. Application dated 17.12.2024 for correction of order dated 30.1.2024.
1. Heard learned counsel for the parties.
2. The cause shown is sufficient. The application is allowed.
3. Order dated 30.1.2024 is corrected. The corrected order is as under:-
1. Heard Sri I. M. Pandey, learned counsel for the petitioner, learned Standing counsel for respondent No.s 1, 3 and 4 and Sri Mayank Pathak for respondent No.2- Bank.
2. By means of the present writ petition the petitioner has challenged the auction proceedings which has culminated into confirmation of the auction by the order of Sub Divisional Magistrate, Tehsil Milkipur, Faizabad.
3. The facts in brief are that the petitioner is a proprietor of a business firm, namely Rahul F
The right of redemption in a mortgage is extinguished upon registration of the sale deed, affirming the need for compliance with repayment orders to avoid auction confirmation.
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.
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.
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 mortgagor's right of redemption under the amended Section 13(8) of the SARFAESI Act is extinguished upon publication of the auction notice.
The main legal point established in the judgment is the interpretation of Rule 9(4) and 9(5) of the Security Interest (Enforcement) Rules, 2002, highlighting the requirement for the purchaser to pay ....
The court affirmed the validity of a mortgage auction, emphasizing banks' rights over secured properties despite challenges from subsequent purchasers and procedural compliance in auction processes.
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