Whether in the case of subsequent sale fresh 30 days notice under Rule 8 (6) of Security Interest (Enforcement) Rules, 2002 is required or not? – Smt. Alluri Vijaya Lakshmi Vs. Union Bank of India (erstwhile Andhra Bank) – 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) Proviso attached to Rule 9 (1) simply provides that if the sale of immoveable property by one of the methods specified by Sub-rule (5) of Rule 8 fails, sale is required to be conducted again. The Authorised Officer shall serve, affix and publish notice of sale on not less than 15 days to the Borrower for any subsequent sale. It means that in case of subsequent sale, the period of 30 days, as required under Rule 9 (1) is curtailed to 15 days. This proviso of Rule 9 (1) in no manner curtailed the period of notice provided under Rule 8 (6).
(iii) It means that 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.
