SARFAESI sale notice rules allow simultaneous borrower notice and public auction notice, with a mandatory thirty-day gap before sale.

Under the SARFAESI Act and the Security Interest (Enforcement) Rules, a secured creditor must give the borrower a clear thirty days' notice before sale of an immovable secured asset, but no separate prior notice is required before choosing the mode of sale. The notice of intended sale to the borrower under Rule 8(6) and the public notice for auction or tender sale may be issued simultaneously, because the Rules do not require a sequential two-stage process. The borrower's protection is the mandatory thirty-day gap between the sale notice and the actual sale date, not a prior notice on the choice of sale mode.

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Issues: Whether a secured creditor is required to issue a separate individual notice to the borrower before deciding the mode of sale of the secured asset, and whether the individual notice of intended sale and the public notice for auction or tender sale must be issued sequentially rather than simultaneously.

Analysis: The statutory scheme under Section 13(8) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and Rules 8 and 9 of the Security Interest (Enforcement) Rules, 2002 requires a clear thirty days' notice to the borrower before the sale of an immovable secured asset. The possession notice under Rule 8(1) and 8(2) is distinct from the notice of intended sale under Rule 8(6) read with Rule 9(1). For sale by public auction or public tender, the proviso to Rule 8(6) also requires a public notice in two newspapers. The Rules do not stipulate that the public notice can be issued only after the expiry of thirty days from the individual notice to the borrower, and there is no requirement of a separate prior notice before deciding the mode of sale. The borrower's protection lies in the mandatory thirty days' gap between the sale notice and the date of sale.

Conclusion: The High Court's view was incorrect. The secured creditor may simultaneously serve the borrower with notice of intended sale and issue the public notice for sale, provided the sale itself is not held before the expiry of thirty clear days. The appeal therefore succeeds in favour of the appellant.

Final Conclusion: The impugned view imposing a sequential two-stage notice requirement was set aside, and the statutory sale process under the SARFAESI framework was clarified to permit simultaneous issuance of the borrower notice and the public sale notice.

Ratio Decidendi: Under Section 13(8) of the SARFAESI Act and Rules 8 and 9 of the Security Interest (Enforcement) Rules, 2002, the secured creditor must give the borrower thirty days' clear notice before sale, but may simultaneously issue the borrower's sale notice and the public notice for auction or tender sale; no separate prior notice before choosing the mode of sale is required.

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