Auction sale finality under SARFAESI prevailed over later insolvency moratorium where sale steps were completed before CIRP.

The amended Section 13(8) of the SARFAESI Act extinguishes the borrower's right of redemption on publication of the auction notice if the secured debt is not tendered before that stage, so a sale already auctioned and confirmed before the insolvency commencement date is not undone by later payment of balance consideration or registration of the sale certificate. The secured creditor's self-purchase of the second property by adjustment was treated as permissible under Sections 13(5A) and 13(5B), because the decisive sale steps had also occurred before CIRP began. The moratorium under Section 14(1)(c) of the IBC did not invalidate transactions that had crystallised before insolvency commencement.

---

---

Issues: Whether the sale of the secured assets under the SARFAESI Act, 2002 could be avoided on the ground that the corporate insolvency resolution process commenced before the balance sale consideration was paid and the sale certificate was registered, and whether the secured creditor's purchase of the second property by adjustment was invalid in view of the moratorium under the Insolvency and Bankruptcy Code, 2016.

Analysis: The determination turned on the effect of the amended Section 13(8) of the SARFAESI Act, 2002, under which the borrower's right of redemption stands extinguished on publication of the auction notice if the dues are not tendered before that stage. The first property had already been put to auction, sold, and confirmed before the insolvency commencement date, and the later payment of balance consideration and registration of the sale certificate did not revive any right in the corporate debtor. As regards the second property, the secured creditor's self-purchase in a subsequent sale was permissible under Section 13(5A) and Section 13(5B) of the SARFAESI Act, 2002, and the relevant sale steps had also occurred before commencement of CIRP. The moratorium under Section 14(1)(c) of the Insolvency and Bankruptcy Code, 2016 did not invalidate transactions whose decisive steps had already culminated before the insolvency commencement date. The sanctity of the auction process and the settled effect of the amended redemption provision were treated as controlling.

Conclusion: The challenge to the sale transactions was rejected. The sale of both properties was upheld and the appellant was denied relief.

Ratio Decidendi: Under the amended Section 13(8) of the SARFAESI Act, 2002, the borrower's right of redemption ends on publication of the auction notice if the secured debt is not tendered before that stage, and a subsequent insolvency moratorium does not undo a valid auction sale already crystallised before the insolvency commencement date.

---