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TMI Blog2016 (9) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... rower as the security for the loan availed and now only one such security interest has fallen for sale by e-auction mode, the right of the borrower to retrieve that secured asset cannot be denied. For retrieving that particular secured asset, it may not be really necessary for the borrower to liquidate the entire outstanding liability in the loan account and it is enough, if he pays the value fetched at the sale/public auction of that particular secured asset and retrieve it. But, at the same time, the incidental costs, charges and expenses, which the bank may have incurred for undertaking the securitization measures, may also have to be tendered. Hence, apart from repayment of ₹ 3,60,10,000/-, which is the price offered and paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'ble Sri Justice Nooty Ramamohana Rao) The petitioner sought for a Writ of Mandamus for declaring the action of the 1st respondent, the Authorised Officer of the State Bank of India, Main Branch, Srikakulam, in issuing e-auction sale notice dated 16.11.2015 without duly following the procedure prescribed under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for brevity the SARFAESI Act), particularly in collusion with the 2nd respondent, as arbitrary and illegal. 2. Heard Sri C. Raghu, learned Senior Counsel on behalf of Sri T. Rajinikanth Reddy, learned counsel for the petitioner, and Sri B.S.S. Prasad, learned Standing Counsel for the State Bank of India; and Sri M.V. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SARFAESI Act and the security interest created by them also answers the definition contained under Section 2(1)(z)(f) of the SARFAESI Act, the State Bank of India, the creditor, is entitled to take measures for securitization of the loan as provided for under Section 13 of the SARFAESI Act. Under sub-section (2) of Section 13 of the SARFAESI Act, the secured creditor is required to draw a demand notice calling upon the defaulting borrower to pay the entire outstanding liability. Accordingly, a notice was drawn under sub-section (2) of Section 13 of the SARFAESI Act on 30.11.2011 calling upon the petitioner herein to liquidate the outstanding liability of ₹ 4,38,47,732/- within a period of 60 days from the date of receipt of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner approached the Debts Recovery Tribunal, Visakhapatnam, and the said Tribunal, by order dated 12.02.2014 in S.A.No.245 of 2013, set aside the sale by auction, including the issuance of Sale Certificate. The Bank has approached the Debts Recovery Appellate Tribunal at Kolkata, and the appeal preferred by it bearing No.48 of 2014 was dismissed by order dated 04.12.2014, upholding the view taken by the Debts Recovery Tribunal, Visakhapatnam. That is how, on the second occasion, the sale by e-auction mode has to be initiated once again. A sale notice dated 16.11.2015 was issued, it was got published in Hindu Newspaper of Issue dated 18.11.2015. The auctions were conducted on 23.12.2015 between 11.30 a.m. to 12.30 p.m. The Reserve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction mode. 7. Since, every mortgager has a right to redeem the mortgaged immovable property, at any time before the sale of it is held, in accordance with law, and the title thereof is conveyed to the purchaser, he can redeem the mortgaged property. This is a settled principle of law and if one really requires an authority, the ratio laid down by the Apex Court in MATHURALAL vs. KESHAR BAI AND ANOTHER AIR 1971 SC 310 , last 4 lines of para-15, and para-16 is a complete answer. This apart, the Parliament has also noticed this valuable right of the mortgager and hence incorporated the same in the form of sub-section (8) of Section 13 of the SARFAESI Act, which reads as under: 13. Enforcement of Security Interest :- (1) to (7) (8) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account and it is enough, if he pays the value fetched at the sale/public auction of that particular secured asset and retrieve it. But, at the same time, the incidental costs, charges and expenses, which the bank may have incurred for undertaking the securitization measures, may also have to be tendered. 9. Hence, apart from repayment of ₹ 3,60,10,000/-, which is the price offered and paid by the 2nd respondent herein for the secured asset, which was sold by the 1st respondent on 23.12.2015, the petitioner shall also pay the securitization expenses incurred by the bank and also such expenses in the form of compensatory costs to the 2nd respondent for the monies deposited by him in the form of interest, not exceeding @ 9% per ann ..... X X X X Extracts X X X X X X X X Extracts X X X X
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