Section 13(8) of SARFAESI Act – Right to Redemption of Mortgage & Rights of Auction Purchaser
Section 13(8) of SARFAESI Act – Redemption of Mortgage & Rights of Auction Purchaser
On 12.2.2020, the Bank had issued notice under Section 13(2) of the SARFAESI Act for recovery of dues.
On 31.10.2020, the Bank published possession notice in two newspapers.
On 28.12.2020, SA was filed challenging the possession notice.
On 22.1.2021, the Bank issued auction sale notice as per Rules 8 and 9 of the SARFAESI Rules. This was challenged in DRT.
On 26.2.2021, the appellants participated in the auction and deposited entire sale consideration on 20.3.2021, after acceptance of their bid.
On 22.3.2021, the sale certificate was issued.
On 7.5.2021, the borrowers paid the outstanding dues for releasing the other properties.
In that context, the question of right to redeem the mortgage property arose.
The borrower has a right to redeem the mortgage only till the publication of the Auction Notice. Section 13(8) must be read with Rules 8 and 9 of the ARFAESI Rules. However, the right of redemption would be extinguished on the date on which the notice is published for auction or inviting quotations or tender from public or private treaty.
Judgment dated 23.9.2025 of the Supreme Court of India in Civil Appeal No.12174 of 2025 of M. Rajendran & Others Vs. M/s. KK Oils and Protiens India Pvt Ltd and others with connected Civil Appeal.
.
