Celir LLP vs Bafna Motors (Mumbai) Pvt. Ltd.

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2023 Supreme(SC) 977

D. Y. CHANDRACHUD, J. B. PARDIWALA
Celir LLP – Appellant
Versus
Bafna Motors (Mumbai) Pvt. Ltd. – Respondent

Advocates appeared:
For the Appellant(s) : Mr. Mahesh Agarwal, Adv. Mr. Rishi Agrawala, Adv. Mr. Ankur Saigal, Adv. Ms. Anwesha Padhi, Adv. Mr. Chirag Nayak, Adv. Mr. Robin Fernandes, Adv. Ms. Diksha Rai, Adv. Mr. Kunal Mehta, Adv. Ms. Ira S. Mahajan, Adv. Ms. Roopali Lakhotia, Adv. Mr. E. C. Agrawala, AOR
For the Respondent(s): Mr. Ishaan George, AOR

Judgement Key Points

The right of redemption of a mortgaged property generally exists until the sale is finalized through a registered transfer or conveyance (!) . Under the amended SARFAESI Act, this right is considered to be extinguished once the auction notice is published (!) . After publication of the notice, the mortgagor's opportunity to redeem is waived or deemed waived, and the sale process proceeds to completion (!) (!) .

Table of Content
1. common issues in the appeals arise from the same underlying facts. (Para 1 , 2 , 3)
2. discussion of the borrower's financial situation and auction processes. (Para 4 , 5 , 6 , 7 , 8 , 9 , 10)
3. arguments regarding the law on redemption rights. (Para 22 , 23 , 34 , 35 , 36)
4. conclusion directing bank actions following auction. (Para 106 , 108)

J.B. PARDIWALA, J.

1. Since the issues raised in both the captioned appeals are same, the parties are also the same and the challenge is also to the self-same judgment and order passed by the High Court those were taken up for hearing analogously and are being disposed of by this common judgment and order.

3. These appeals are at the instance of an auction purchaser left high and dry by the respondents herein and is directed against the common judgment and order passed by the High Court of Judicature at Bombay in Writ Petition No. 9523 of 2023 with Interim Application (ST) No. 21706 of 2023 (for impleadment) by which the High Court allowed the writ petition filed by the borrowers and thereby directed the Bank to permit the

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2023 Supreme(SC) 977

D. Y. CHANDRACHUD, J. B. PARDIWALACelir LLP – AppellantVersusBafna Motors (Mumbai) Pvt. Ltd. – Respondent

D. Y. CHANDRACHUD, J. B. PARDIWALA
Celir LLP – Appellant
Versus
Bafna Motors (Mumbai) Pvt. Ltd. – Respondent