Mortgagor's Right Of Redemption Prevails Over Auction Purchaser's Claim Of Title: Calcutta High Court

The Calcutta High Court has reiterated that while an auction purchaser acquires certain rights upon being declared the successful bidder, such rights are not absolute and cannot override the statutory right of redemption available to the mortgagor under law.The court said once the borrower exercises the right of redemption by clearing the dues before the transfer of the secured asset, the auction purchaser cannot claim an indefeasible right over the property.A single bench of Justice Ajay Kumar...

Secured Creditors Must Act Speedily After SARFAESI Notice; Delay Defeats Law's Purpose: MP High Court

The Madhya Pradesh High Court has held that once a secured creditor initiates recovery proceedings under the SARFAESI Act, it must act without delay, failing which the very purpose of the law stands defeated. A division bench of Justice Vivek Rusia and Justice Pradeep Mittal, while dismissing a review petition filed by Cent Bank Home Finance Ltd, observed that lenders cannot remain inactive after issuing a demand notice under Section 13(2) of the SARFAESI Act. “After initiating the proceedings...

SARFAESI Sale Cannot Proceed If Sale Certificate Is Not Issued Before IBC Moratorium: Bombay High Court

The Bombay High Court on Wednesday held that a secured creditor cannot proceed with a SARFAESI sale once an interim moratorium under the Insolvency and Bankruptcy Code comes into force. It rulled that the Union Bank of India was not entitled to accept balance payments or issue a sale certificate after the personal insolvency process against the borrower had commenced. In an order passed on December 10, Justices R I Chagla and Farhan P Dubash held that “the secured creditor could not have...