Published on: 22 July 2023 at 10:30 IST
Court: Supreme Court
Citation: Mathew Varghese V. M. Amritha Kumar (2014)
Honourable Supreme Court of India has held that Section 13(8) of the SARFAESI Act allows a borrower to tender the dues together with all costs, charges and expenses incurred by the secured creditor at any time before the date fixed for sale or transfer. If such offer is made by the Borrower then the secured asset should not be sold or transferred by the secured creditor. It is further reinforced to the effect that no further step should also be taken by the secured creditor for transfer or sale of the secured asset.
The contingency stipulated in the event of the tender being made by a debtor of the dues inclusive of the costs, charges, etc., would be that such tender being made before the date fixed for sale or transfer, the secured creditor should stop all further steps for effecting the sale or transfer.
29.2. When we analyse in depth the stipulations contained in the said sub-section (8), we find that there is a valuable right recognised and asserted in favour of the borrower, who is the owner of the secured asset and who is extended an opportunity to take all efforts to stop the sale or transfer till the last minute before which the said sale or transfer is to be effected. Having regard to such a valuable right of a debtor having been embedded in the said sub-section, it will have to be stated in uncontroverted terms that the said provision has been engrafted in the Sarfaesi Act primarily with a view to protect the rights of a borrower, inasmuch as, such an ownership right is a constitutional right protected under Article 300-A of the Constitution, which mandates that no person shall be deprived of his property save by authority of law.
Drafted By Abhijit Mishra
