Overview
The Supreme Court has ruled that a borrower can still exercise the रिडेम्प्शन अधिकार even after a Sale Certificate is issued, provided the शेष राशि is paid, albeit belatedly.
Key Developments
- The case arose under the SARFAESI framework when a bank initiated an auction of a mortgaged property.
- The borrower failed to pay the balance within the statutory Timelimit and the bank issued a sale certificate to the Auction Purchaser.
- The auction purchaser later paid the pending balance after the deadline, prompting the borrower to seek redemption.
- The Supreme Court held that the borrower’s right is not extinguished merely because the certificate was issued; the belated payment of the balance revives the redemption right.
Important Facts
The judgment, delivered on 2 April 2026, clarified that the statutory provision under SARFAESI does not automatically forfeit the borrower’s redemption right upon issuance of a sale certificate. The Court emphasized that the purpose of the redemption provision is to give the borrower a final opportunity to clear the debt, and that this purpose is fulfilled once the balance is actually paid, irrespective of the timing of the payment.
Exam Relevance
This decision touches upon multiple UPSC syllabus areas:
- GS 2 (Polity)