Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | SARFSI Act Right of redemption ss. 13(2) 13(4) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | forcement of Security Interest Act, 2002: ss. 13(2), 13(4) – Right of redemption – Loan taken by appellants from respondent Bank – In view of default in discharging the loan by appellants, respondent Bank exercised its power under s.13(4) and took over constructive possession of mortgaged property – Appellant filed applications before DRT which, however, were dismissed for non-prosecution – Thereafter, respondent bank brought secured property for sale – Respondent no. 3 was the highest bidder and he deposited 25% of sale consideration – On 2.1.2006, appellant deposited Rs.25 lacs in the account of his father followed by deposit of three cheques of Rs.25 lacs which were returned by respondent bank on the ground that same was not a valid tender – Meanwhile, respondent no. 3 complied with all terms and conditions of sale, as a result of which sale was confirmed in his favour – Respondent bank credited a sum in the loan accounts of appellants and closed both the loan accounts – On 6.1.2006, respondent bank issued a sale certificate in favour of respondent no.3 – Appellant filed applications for restoration of the main proceedings before DRT which was dismissed – Appellants thereafter forwarded demand drafts in the name of Authorised Officer of the bank which was also not accepted – Appellant filed writ petition before High Court for quashing of the auction of subject property – Whether the appellants had a subsisting right of redemption until the sale certificate was duly registered entailing in transfer of subject property – Held: There was substance in the stand taken by respondent bank that no valid tender was made by the appellants so as to discharge them from their obligation – The amount allegedly deposited in the account of father of appellant No.2 and not in their loan accounts was not be a valid tender – Similarly, appellants attempted to pay in the form of cheques on 2.1.2006 – However, as per the terms and conditions, payment by cheques was not permissible – Thus, the respondent bank was not obliged to accept the amount in the form of cheques – Even the third attempt made by appellants was to offer demand drafts drawn in favour of or in the name of the Authorised Officer of the respondent bank and not in the name of the bank or authorising the bank to appropriate it towards the subject loan accounts – Therefore, these demand drafts were rightly not accepted as a valid tender – Thus, appellants failed to exercise their right of redemption before the issue of sale certificate much less the registration thereof. |
Judge | Hon'ble Mr. Justice A.M. Khanwilkar |
Neutral Citation | 2019 INSC 922 |
Petitioner | Shakeena & Anr. |
Respondent | Bank Of India & Ors. |
SCR | [2019] 11 S.C.R. 341 |
Judgement Date | 2019-08-20 |
Case Number | 8097 |
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