Even in the case of subsequent sale, provisions of Rule 8(6) of Security Interest (Enforcement) Rules, 2002 have to be followed by the Authorised Officer | Law nowhere curtails the right to redemption available to Borrower under Section 13(8) of SARFAESI Act in case of a subsequent sale – Bank of Baroda Vs. M. Sujatha and Ors. – DRAT Kolkata

Hon’ble DRAT Kolkata held that: (i) Even if the amendment of Section 13(8) of the SARFAESI Act, Secured Creditor is bound to afford to the Borrower a clear 30 days notice period under Rule 8 (6) to enable him to exercise his right of redemption. In consequence, a notice under Rule 9 (1) cannot be published prior to expiry of 30 days period. (ii) Even in the case of subsequent sale, provisions of Rule 8 (6) have to be followed by the Authorised Officer. Accordingly, it is incumbent upon the Authorised Officer, even in case of subsequent sale, to comply the provisions of Rule 8 (6) as well as proviso to Rule 9 (1). Law nowhere curtails the right to redemption available to the Borrower under Section 13 (8) of the Act in case of a subsequent sale.

Related Posts

Scroll to Top