Right of redemption under SARFAESI continues until sale confirmation, not mere acceptance of the highest bid.

Section 13(8) of the SARFAESI Act, read with Rule 9 of the Security Interest (Enforcement) Rules, was interpreted to mean that the borrower's right of redemption continues until the secured creditor confirms the sale and issues the sale certificate. The provision's reference to payment "before the date fixed for sale or transfer" was read as extending to the point of transfer, so mere acceptance of the highest bid by the authorised officer does not by itself complete the sale or pass title. On that reasoning, where no confirmation and no sale certificate had been issued, payment of dues before confirmation preserved redemption and prevented the auction purchaser from acquiring enforceable title.

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Issues: Whether, under Section 13(8) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 read with Rule 9 of the Security Interest (Enforcement) Rules, 2002, the borrower's right of redemption continues until confirmation of sale by the secured creditor, and whether the auction purchaser acquires title on mere acceptance of bid or only upon such confirmation.

Analysis: The provision was construed on its plain language and in the context of the scheme of enforcement under the Act and the Rules. The expression "before the date fixed for sale or transfer" was read as covering not merely the auction date but also the point at which the secured asset is transferred. Rule 9(2) makes the sale subject to confirmation by the secured creditor, Rule 9(4) regulates payment of the balance price, and Rule 9(6) contemplates issuance of the sale certificate only after confirmation by the secured creditor. On that reading, mere acceptance of the highest bid by the authorized officer does not by itself amount to confirmation of sale or transfer of title. Since no confirmation by the secured creditor had taken place and no sale certificate had been issued, the borrower's payment of the dues before confirmation preserved the statutory right of redemption.

Conclusion: The borrower was entitled to redeem the secured asset until confirmation of sale by the secured creditor, and the auction purchaser did not acquire enforceable title on the facts of the case.

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