Right of redemption under SARFAESI survives until sale certificate registration, allowing a secured creditor to accept a better settlement.

Amended Section 13(8) of the SARFAESI Act was treated as limiting further transfer only where dues are tendered before publication of the public auction notice; it does not by itself extinguish the mortgagor's right of redemption. That right under Section 60 of the Transfer of Property Act continues until registration of the sale certificate, and Sections 35 and 37 of SARFAESI do not displace that position. Because no sale certificate had been registered, the borrower's redemption right survived, and the secured creditor could validly accept the more beneficial one-time settlement instead of completing the auction sale.

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Issues: Whether the secured creditor could accept a one time settlement from the borrower after publication of the auction notice and after the petitioner emerged as the successful bidder, and whether the borrower's right of redemption stood extinguished on issuance of the auction notice.

Analysis: The amended Section 13(8) of the SARFAESI Act, 2002 was held to restrict further transfer only where dues are tendered before publication of notice for public auction, but it does not by itself extinguish the mortgagor's right of redemption. The right of redemption under Section 60 of the Transfer of Property Act, 1882 continues until the sale certificate is registered, and Sections 35 and 37 of the SARFAESI Act do not exclude that position. Since no sale certificate had been registered, the borrower had not lost the right of redemption. The secured creditor was therefore entitled to prefer the more beneficial settlement offered under the OTS.

Conclusion: The acceptance of the higher OTS amount by the secured creditor was valid, and the petitioner could not insist on completion of the auction sale.

Final Conclusion: The writ petition was dismissed because the borrower's redemption right had not been extinguished and the secured creditor could lawfully accept the more advantageous settlement before registration of any sale certificate.

Ratio Decidendi: Under the amended SARFAESI framework, the borrower's right of redemption survives until registration of the sale certificate, and the secured creditor may accept a more beneficial settlement before that stage.

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