Right of redemption

The right of redemption is a borrower's right to get back secured property by paying the full amount due before the creditor's sale takes effect. Under section 13(8) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, as amended in 2016, the point at which it ends was moved earlier. In M. Rajendran v. M/s KPK Oils and Proteins India Pvt. Ltd., decided on 22 September 2025, the Supreme Court held that redemption ends at publication of the sale notice, whatever the mode of sale.

Two 2026 decisions have made the back end less final. In E. Muthurathinasabathy v. Sri International, decided on 1 April 2026, a sale where the balance price was paid about fifteen months late was held inchoate, and the right to redeem survived until completion. In M. R. Vasumathi v. The Authorized Officer, decided on 9 June 2026, a confirmed sale was quashed where the balance came five days after the fifteen days allowed by rule 9(4) without a written extension. Whether these reopen the 2025 position or only police the rules is unsettled as at 21 September 2026; our reading is the narrow one.