Borrower loses right of mortgage redemption over collateral property once auction notice is published: SC

The Supreme Court (SC), in an appeal against the order of the Bombay High Court (BHC) permitting the borrowers to redeem the secured asset after the conclusion of auction process, has held that failure of borrower in paying the entire dues before the publication of the auction notice under Section 13(8) of SARFAESI Act, 2002 constitute extinguishment of right of redemption of mortgage, by the act of parties as per the proviso to Section 60 of the Transfer of Property Act, 1882. Further, the SC held that once the auction stood concluded it can be said that there was an intentional relinquishment of the right of redemption under Section 13(8) of SARFAESI Act, 2002.