In Brief
This appeal involved a secured creditor bank seeking to enforce a security interest in mortgaged properties of guarantors of a defaulting borrower. The guarantors challenged the auction sale conducted on 20 July 2012, arguing the bank's notice violated mandatory 30-day notice procedures under the SARFAESI Act. The Supreme Court held the Second Sale Notice was a valid continuation of an earlier notice, since the first scheduled sale had failed due to the guarantors' own interim orders. The Court emphasised that the mortgagors' redemption rights were extinguished upon registration of the sale in the auction purchaser's favour on 14 September 2012, and prolonged litigation could not revive extinguished rights. The Court dismissed the appeal and awarded costs, while ordering the guarantors to hand over possession and pay collected rent to the auction purchaser.
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