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IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
VIVEK RUSIA, PRADEEP MITTAL
Punjab National Bank – Appellant
Versus
Mohd. Abdul Kalam – Respondent
ORDER :
1. The petitioner-Bank has preferred the present Writ Petition challenging the order dated 03.04.2013 passed by the learned Debt Recovery Appellate Tribunal, Allahabad in Appeal No. R-81/2012, whereby the Appellate Tribunal set aside the order dated 25.04.2012 passed in Case No. 71/09 by the learned Debts Recovery Tribunal, Jabalpur and allowed the appeal filed by respondent No.1.
2. The facts, in brief, necessary for adjudication of the present writ petition are that the petitioner–Bank initiated proceedings under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 against respondent No.2, Shri Sanjay Dubey. The said action was challenged by respondent No.2 by filing a Securitisation Application on 06/05/09 before the Debts Recovery Tribunal, Jabalpur, which was registered as S.A. No. 71/2009. During pendency on 22/05/09 of the said application, the learned Tribunal passed an interim order directing the parties to maintain status quo. Pursuant to the auction publication notice dated 21.04.2009, tenders were invited for sale of the secured asset on 27.04.2009 with a reserve price of Rs.18.00 lakhs. In resp
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 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 auction sale under the SARFAESI Act may be annulled on equitable grounds if procedural delays, not attributable to borrowers, prevent confirmation and violate statutory requirements.
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 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.
Mandatory compliance with procedural requirements under the SARFAESI Act is essential; failure to adhere prejudices borrowers' rights and invalidates auction proceedings.
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 Section 13(8) of the SARFAESI Act is extinguished upon the publication of a sale notice, as amended in 2016.
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