Supreme Court: 2016 SARFAESI Amendment Applies to All Defaults Post-September 1, 2016

The Supreme Court held that the 2016 amendment to Section 13(8) of the SARFAESI Act applies to all loan defaults occurring after September 1, 2016, even if loans were sanctioned earlier.

The Court rejected borrowers’ claims under the pre-amended law, ruling that redemption rights ended once the auction notice was issued in January 2021.

Citing M.D. Frozen Foods Exports Pvt. Ltd. v. Hero Fincorp Ltd. and Authorised Officer, Central Bank of India v. Shanmugavelu (2024 INSC 80), it stressed SARFAESI’s remedial nature.

The Court clarified that redemption is statutory, not contractual, and urged the Finance Ministry to amend anomalies in Section 13(8) and Rules 8 & 9.

[M Rajendran v M/s KPK Oils and Proteins India Ltd]