Mortgagor's right of redemption continues until sale certificate issues, and auction relief may follow on prompt payment.

The amended Section 13(8) of the SARFAESI Act regulates the secured creditor's power to transfer the secured asset, but does not extinguish the mortgagor's equity of redemption. That right continues under the general law until completion of transfer by issuance of the sale certificate, not merely on publication of the sale notice or conduct of the auction. On the facts, the petitioners had made substantial payments and remained willing to clear the balance, so equitable relief against the auction proceedings was granted subject to payment of the outstanding dues within four weeks, with protection for the auction purchasers through refund of their deposit with interest.

---

---

Issues: (i) Whether, after the 2016 amendment to Section 13(8) of the SARFAESI Act, the mortgagor's right of redemption continues until issuance of the sale certificate or stands cut off at the stage of publication of sale notice. (ii) Whether the petitioners were entitled to relief against the auction proceedings and confirmation of sale.

Issue (i): Whether, after the 2016 amendment to Section 13(8) of the SARFAESI Act, the mortgagor's right of redemption continues until issuance of the sale certificate or stands cut off at the stage of publication of sale notice.

Analysis: The general law under Section 60 of the Transfer of Property Act preserves the mortgagor's equity of redemption until extinguished by act of parties, decree, or completion of transfer. The amended Section 13(8) was read as regulating the secured creditor's power to proceed with transfer, not as expressly abolishing the mortgagor's substantive right of redemption. The Court accepted the view that the amendment does not displace the general law on redemption and that the right survives until execution of conveyance and issuance of the sale certificate.

Conclusion: The right of redemption remained available to the petitioners until issuance of the sale certificate, and it was not lost merely because the auction had been held or the sale notice had been published.

Issue (ii): Whether the petitioners were entitled to relief against the auction proceedings and confirmation of sale.

Analysis: The petitioners had made substantial payments, expressed readiness to clear the balance dues, and the auction sale had not culminated in issuance of a sale certificate. The Court also held that relegating the petitioners to the statutory remedy would not be appropriate in the facts of the case. Since the sale remained unconfirmed and the petitioners' redemption right subsisted, equitable relief was warranted, while protecting the auction purchasers by directing refund of their deposit with interest if the petitioners complied within the stipulated time.

Conclusion: The petitioners were held entitled to relief, subject to payment of the entire balance outstanding dues with applicable interest within four weeks.

Final Conclusion: The writ petition succeeded on the redemption issue and the challenge to the auction proceedings was entertained, with relief conditioned on prompt payment of the outstanding dues and consequential protection granted to the auction purchasers by way of refund with interest.

Ratio Decidendi: The amended Section 13(8) of the SARFAESI Act regulates the secured creditor's power of transfer but does not extinguish the mortgagor's equity of redemption, which continues until completion of transfer by issuance of the sale certificate.

---