Redemption and sale finality under SARFAESI: sale certificate completes title without registration, and belated tender cannot revive redemption.

A sale of secured assets under the SARFAESI framework becomes complete and absolute on confirmation of the auction and issuance of the sale certificate under Rule 9(7), and no registration is required because a public-auction sale certificate is excluded from compulsory registration. The mortgagor's right of redemption under Section 60 of the Transfer of Property Act ends once the sale is completed, so tender of dues after the auction date and after confirmation cannot revive that right. Section 35 gives the Act overriding effect where there is inconsistency, and Section 37 operates only subject to that special enforcement regime.

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Issues: (i) Whether a sale of secured assets under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 culminating in issuance of a sale certificate under Rule 9(7) of the Security Interest (Enforcement) Rules, 2002 becomes complete and absolute without registration; (ii) whether tender of money after the date fixed for sale but before registration preserves the mortgagor's right of redemption under Section 60 of the Transfer of Property Act, 1882 in view of Section 37 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (iii) whether Section 35 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 overrides Section 37 of that Act.

Issue (i): Whether a sale of secured assets under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 culminating in issuance of a sale certificate under Rule 9(7) of the Security Interest (Enforcement) Rules, 2002 becomes complete and absolute without registration.

Analysis: The statutory scheme treated the auction sale as concluding when the sale was confirmed and the sale certificate was issued. The Registration Act, 1908 expressly excludes a certificate of sale granted to the purchaser of property sold by public auction from compulsory registration. Once the auction purchaser's bid was accepted, the sale was confirmed and the sale certificate was issued, title stood vested in the purchaser; registration was only unnecessary formality. The plea that the sale remained incomplete until registration was inconsistent with the statutory scheme and the settled effect of a sale certificate.

Conclusion: The sale became complete and absolute on confirmation and issuance of the sale certificate, and no registration was required.

Issue (ii): Whether tender of money after the date fixed for sale but before registration preserves the mortgagor's right of redemption under Section 60 of the Transfer of Property Act, 1882 in view of Section 37 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

Analysis: The right of redemption under Section 60 of the Transfer of Property Act, 1882 continues only until the sale is completed. Under Section 13(8) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the borrower must tender all dues before the date fixed for sale or transfer; payment after that date does not stop the sale already concluded. Since the borrowers approached the secured creditor only after the auction date and after sale confirmation, their tender could not revive the extinguished right of redemption. The cited principle that redemption survives until registration did not apply because registration was not mandatory for a sale certificate under public auction.

Conclusion: The borrowers had no surviving right to redeem the property after the sale had been completed and confirmed.

Issue (iii): Whether Section 35 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 overrides Section 37 of that Act.

Analysis: Section 35 gives the Act overriding effect notwithstanding inconsistency with any other law, while Section 37 states that the Act is in addition to, and not in derogation of, specified laws and other laws in force. These provisions were read conjointly: Section 37 preserves other laws only to the extent they are not inconsistent with the special mechanism under the Act, and Section 35 prevails where there is inconsistency. The non-obstante clause ensured that the enforcement measures under the Act could not be defeated by invoking a conflicting right under another enactment after the statutory sale had attained finality.

Conclusion: Section 35 overrides any inconsistent operation of Section 37, and the point was answered in the affirmative.

Final Conclusion: The auction sale under the special statutory framework was upheld as final and absolute, the borrowers' belated attempt to redeem the secured asset failed, and the writ petitions stood dismissed with the appellate challenge succeeding.

Ratio Decidendi: A sale of secured assets under the Act becomes final on confirmation and issuance of the sale certificate, which does not require registration, and the borrower's right of redemption cannot be exercised after that statutory finality is reached; the Act's overriding clause prevails over any inconsistent contrary right.

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