Supreme Court rules borrowers lose right to redeem property once auction notice is published.
The Supreme Court held that a borrower’s right to redeem a mortgaged property under the SARFAESI Act ends on the date the auction notice is published, not when the sale is completed. The Court clarified that the 2016 amendment to Section 13(8) curtailed this right significantly, overriding the general law under the Transfer of Property Act. The High Court’s order allowing redemption after the auction was set aside.
Court:
Supreme Court of India
Case:
M. Rajendran & Ors. vs. M/S KPK Oils and Proteins India Pvt. Ltd. & Ors.
Civil Appeal Nos. 12174-12175 of 2025
Date of Judgement:
22nd September 2025
Act:
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)