Supreme Court: Bank’s Public Notice Under SARFAESI Ends Borrower’s Redemption Rights

The Supreme Court has clarified that a public notice issued by a bank under the SARFAESI Act extinguishes the borrower’s right to redeem the secured asset under Section 13(8) once the notice period expires.

The court emphasised that publication of the notice marks the cutoff point for repayment and restoration of possession, preventing indefinite delays in recovery proceedings.

The Court noted that the Security of Enforcement Rules provided for different modes of notice for different modes of sale- whether by public auction, tender, or private treaty.

[M. Rajendran & Ors. v M/S KPK Oils & Protiens India Pvt. Ltd & Ors.]