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DWARIKA PRASAD vs. STATE OF UTTAR PRADESH AND ORS.

SCR Citation: [2018] 3 S.C.R. 29
Year/Volume: 2018/ Volume 3
Date of Judgment: 06 March 2018
Petitioner: DWARIKA PRASAD
Disposal Nature: Case Disposed Off
Neutral Citation: 2018 INSC 210
Judgment Delivered by: Honble Dr. Justice D.Y. Chandrachud
Respondent: STATE OF UTTAR PRADESH AND ORS.
Case Type: CIVIL APPEAL/148/2018
Order/Judgment: Judgment
1. Headnote

Securitisation and Reconstruction of Financial Assets andEnforcement of Security Interest Act, 2002 – s. 13 (8) – Right toredemption – Extinguishment of – Held: s. 13(8) mandates that it isonly where the dues of the secured creditor are tendered togetherwith costs, charges and expenses before the date fixed for sale ortransfer that the secured asset is not to be sold or transferred – Onfacts, appellant guarantor to sanctioned loan, created an equitablemortgage in respect of immovable property and the said propertywas auctioned by the bank – Appellant was aware of the proceedingsinitiated by the bank for asserting its right to recover its dues byselling the property – While appellant deposited an amount ofRs 7,00,000/- with the bank, but failure to deposit the balance inaccordance with the provisions of s.13(8) – Even after the writproceedings before the High Court was withdrawn, appellant didnot deposit the balance due together with the costs, charges andexpenses – Sale was confirmed and registered sale deed was executed– Thus, the right to redemption stood extinguished on the executionof the registered sale deed – However, appellant to be refunded thedeposit of Rs 7,00,000/- with interest at 9% p.a.

2. Case referred
3. Act
  • Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002)
4. Keyword
  • Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act
  • 2002 – s. 13 (8)
5. Equivalent citation
    Citation(s) 2018 AIR 1286 = 2018 (5) SCC 491 = 2018 (5) Suppl. SCC 491 = 2018 (3) JT 103 = 2018 (3) Suppl. JT 103 = 2018 (3) SCALE 610