Redemption under SARFAESI ends on registered sale deed; partial deposit cannot defeat a completed secured asset sale.

Under Section 13(8) of the SARFAESI Act, the borrower's right of redemption continues only until the secured creditor's dues, costs and expenses are tendered before the fixed date for sale or transfer. Once the sale is completed by execution and registration of the sale deed, that right stands extinguished. On the facts noted, the borrower had paid only part of the amount and did not tender the balance before completion of the sale, so the challenge to the sale failed. The deposited amount was nevertheless directed to be refunded with interest, reflecting restitution after the borrower failed to obtain substantive relief.

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Issues: (i) Whether the borrower's right of redemption under Section 13(8) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 survived after confirmation of sale and execution of the registered sale deed. (ii) Whether the appellant was entitled to refund of the amount of Rs. 7,00,000 deposited with interest.

Issue (i): Whether the borrower's right of redemption under Section 13(8) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 survived after confirmation of sale and execution of the registered sale deed.

Analysis: Section 13(8) preserves the borrower's right to prevent sale or transfer only if the secured creditor's dues together with costs, charges and expenses are tendered before the date fixed for sale or transfer. Applying the principles governing redemption, the right continues until a registered instrument of sale is executed, but once the sale is completed by registration, the right stands extinguished. The appellant deposited only part of the amount and failed to tender the balance in accordance with the statutory requirement before completion of the sale.

Conclusion: The right of redemption did not survive after execution of the registered sale deed and the challenge to the completed sale failed.

Issue (ii): Whether the appellant was entitled to refund of the amount of Rs. 7,00,000 deposited with interest.

Analysis: The amount was deposited during the course of the proceedings and the bank indicated that it was ready to refund it. Since the appellant did not obtain substantive relief against the sale, equity required restitution of the amount deposited by him with reasonable interest.

Conclusion: The appellant was entitled to refund of Rs. 7,00,000 with interest at 9% per annum.

Final Conclusion: The appeal failed on the challenge to the completed sale, but succeeded to the limited extent of securing refund of the deposited amount with interest.

Ratio Decidendi: Under Section 13(8) of the SARFAESI Act, the secured asset cannot be sold or transferred only if the secured creditor's dues together with costs, charges and expenses are tendered before the date fixed for sale or transfer, and the mortgagor's right of redemption is extinguished once the sale is completed by execution of the registered sale deed.

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