In Brief
A bank (Union Bank of India) sanctioned a Rs. 100 crore loan with mortgage security. After the borrower defaulted, the bank conducted a public auction where the appellant (CELIR LLP) bid Rs. 105.05 crore and became the highest bidder. The borrowers then sought to redeem the mortgage by paying Rs. 129 crore before the bank issued a sale certificate. The Bombay High Court permitted redemption. The Supreme Court allowed the appellant's appeal, holding that under the amended Section 13(8) of the SARFAESI Act (2016 Amendment), the borrower's right of redemption is extinguished on publication of the auction notice, not at transfer completion. The Court rejected reliance on general redemption provisions in the Transfer of Property Act, treating the SARFAESI Act as a special law that overrides such general provisions. The Court emphasised that confirmed auctions must maintain sanctity and that courts should not exercise writ jurisdiction when statutory remedies are available.
The lawyer headnote and full judgment text are available to registered users.