SC: Borrowers Lose Property Redemption Post Auction Notice Under SARFAESI
NEW DELHI: On Monday, the Supreme Court ruled that borrowers cannot reclaim property post-publication of an auction notice, as purchasers gain indefeasible rights once a sale certificate is granted by creditor banks and financial institutions under the SARFAESI Act. A bench comprised of Justices J B Pardiwala and R Mahadevan expressed concern about ambiguities in Section 13(8) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act), which was enacted in 2002 for the protection of banks and financial institutions, noting that these ambiguities have led to prolonged litigations. The Court clarified that the…