Summary
The borrowers failed to redeem their mortgage because they never made a valid tender of the outstanding dues, even before registration of the auction sale certificate. Depositing money in a relative’s account, offering cheques contrary to the loan terms and drawing drafts in the authorised officer’s name did not discharge their obligation. The Court dismissed their appeals without deciding whether registration of a SARFAESI sale certificate was essential.
Issues
- Whether the borrowers had validly tendered the outstanding loan dues to redeem the mortgaged property.
- Whether the auction could be reopened after registration and subsequent transfer, despite absence of a valid tender.
Held
- Money placed in the father’s account was not deposited in the borrowers’ loan accounts. Cheque payment was impermissible under the agreed loan terms, and the drafts named the authorised officer rather than the bank without authorising appropriation to the loans. Rejection of these offers was justified. (¶ 27)
- The borrowers neither paid by a valid tender nor sought permission to deposit the amount in court during the writ proceedings or appeals. The allegation that the bank had frustrated redemption was therefore unsustainable. (¶ 28)
- Even assuming that the applicable unamended provision permitted redemption until registration, no valid tender was made before registration on 18 September 2007. The registration question and other challenges consequently required no determination. (¶ 29–30)
- The statutory proceedings had been allowed to become final, and the borrowers could not expand their challenge beyond the ground pursued before the High Court. Registration and subsequent transfer had also occurred before the Supreme Court proceedings and status quo order. (¶ 24–26)
- The facts did not justify relief under Article 142; the appeals and applications were disposed of without costs. (¶ 31–32)
Result
Appeals dismissed without costs; all applications disposed of. The Court left undecided whether registration of a sale certificate issued following a SARFAESI auction was essential.