Borrower’s Right of Redemption Ends with Publication of Auction Notice

On September 23, 2025, the Supreme Court upheld the rights of the auction purchasers under the SARFAESI Act, holding that the borrowers’s right of redemption ends with publication of auction notice. This decision overturned the Madras High Court’s ruling quashing the auction sale certificate in the case of M. Rajendran vs M/S Kpk Oils And Proteins India Pvt. Ltd.

A Bench of Justices J.B. Pardiwala and R. Mahadevan dealt with the issue of borrowers’ right of redemption under Section 13(8) of the SARFAESI Act, 2002, in light of the 2016 amendment. The Court clarified that the borrower’s right to redeem the secured asset is extinguished upon the publication of the auction notice, and any payments made thereafter cannot revive this right.

First, the Court had to decide whether the notices issued under SARFAESI Rules 8(6), 8(7), and 9(1) were part of a single composite “notice of sale” or separate notices. Second, the question of whether Section 13(8)’s phrase “before the date of publication” refer to the composite notice of sale, in which case the borrower’s right of redemption would be terminated once the notice is duly published also lies before the Court. Third, if the revised Section 13(8), which went into effect on September 1, 2016, applied retroactively to loans taken out before then but for which enforcement action was later commenced.

The Court determined that the 30-day timeframe under Rule 9(1) is calculated from the date of such publication and that all notifications issued under the SARFAESI Rules constitute a single composite “notice of sale.” It decided that the revised Section 13(8), which is procedural and remedial in nature, applies retroactively to claims that already exist. This means that when the auction notice was published on January 22, 2021, the borrower’s right of redemption was terminated.

The Supreme Court observed that attempts by borrowers to create third-party rights over the secured property after auction would be void. While allowing the appeals, the Court urged the Ministry of Finance to revisit Section 13(8) and related Rules to resolve ambiguities that continue to generate avoidable litigation.

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Legal Internship at Novation Legal, New Delhi | Apply Now

Novation Legal is a boutique law firm based in New Delhi, offering a broad spectrum of legal services with a strong reputation for delivering tailored solutions. The firm provides comprehensive advisory and litigation services in civil law, criminal law, commercial law, and regulatory compliance. With a team of dedicated professionals, Novation Legal combines in-depth legal expertise with a practical, client-focused approach. The firm is committed to mentoring law students and young professionals, making it an excellent platform for interns eager to develop practical skills in diverse areas of law.

Location

  • New Delhi (On-site)

Position / Vacancies

  • Position: Legal Interns
  • Vacancies: Not specified
  • Duration: Flexible; minimum 1–2 months preferred to ensure substantial learning and contribution.

Eligibility Criteria

Novation Legal is inviting applications from law students who are:

  • Currently enrolled in the penultimate (second-last) or final year of a 3-year or 5-year LL.B. program at a recognized institution.
  • Interested in exploring diverse practice areas, including civil litigation, criminal defense, commercial disputes, and regulatory frameworks.
  • Equipped with strong research and drafting skills. Prior exposure to internships in litigation or corporate law will be an added advantage.
  • Detail-oriented, responsible, and capable of working under deadlines in a professional office setting.
  • Possessing good communication and analytical abilities to support ongoing legal work effectively.

Key Responsibilities

As a legal intern at Novation Legal, your work will include:

  • Legal Research & Analysis: Conducting in-depth research on statutes, precedents, and regulatory frameworks relevant to active cases.
  • Drafting & Documentation: Assisting in drafting pleadings, contracts, petitions, applications, and case briefs under the supervision of associates.
  • Litigation Support: Assisting in the preparation of litigation strategies and supporting senior advocates in hearings and client conferences.
  • Case Preparation: Helping in compiling documents, case files, and compliance-related papers.
  • Client Interaction & Meetings: Exposure to professional client meetings and participation in advisory discussions where appropriate.
  • Court Proceedings: Attending court hearings to observe and understand procedural aspects of litigation.

Mode

  • Full-time, physical internship (on-site) at Novation Legal’s office in New Delhi.
  • Virtual/remote internships are not available for this role.

Stipend

  • Not specified. However, high-performing interns may receive performance-based stipends or allowances at the discretion of the firm.

Why Intern at Novation Legal?

  • Practical Exposure: Learn how a law firm functions in real-time across litigation, advisory, and compliance.
  • Diverse Practice Areas: Gain insight into civil disputes, criminal trials, corporate advisory, and regulatory compliance.
  • Hands-on Learning: Work directly with associates and senior lawyers, receiving mentorship and guidance.
  • Networking Opportunities: Build valuable professional connections in the legal field.
  • Career Development: Strengthen your legal drafting, research, and litigation skills – crucial for career advancement.

Application Process

Interested candidates should submit the following:

  1. Updated CV/Resume – highlighting academic qualifications, prior internships, and relevant skills.
  2. Cover Letter – a brief note (max. 250 words) explaining why you want to intern with Novation Legal, your areas of interest, and how you can contribute.

Applications should be sent via email to:

divyanshguptaapple@gmail.com

Subject Line: Application for Legal Internship – [Your Name]

Example: Application for Legal Internship – Riya Sharma

Important Notes for Applicants

  • Applications without a subject line or cover letter will not be considered.
  • Only shortlisted candidates will be contacted for the next stage of the selection process.
  • Preference will be given to candidates who can commit to a minimum internship duration of 2 months.
  • Students applying should ensure they are available for a full-time, on-site internship in New Delhi.

Timeline & Deadlines

  • Applications will be accepted on a rolling basis. Early applications are encouraged as internship slots are limited.

About the Learning Environment

At Novation Legal, interns are treated as part of the team. The firm emphasizes collaborative learning, encouraging interns to ask questions and develop a problem-solving mindset. Interns will work alongside experienced advocates who provide mentorship while exposing them to the realities of litigation and client advisory.

This is not just an internship to add to your CV; it is a chance to immerse yourself in the dynamic practice of law and understand its practical applications beyond textbooks. Interns who demonstrate commitment and aptitude often receive strong recommendation letters and guidance for their professional journey.

Closing Statement

If you are a penultimate or final-year law student looking to bridge the gap between academic learning and practical application, the Legal Internship at Novation Legal, New Delhi, is an excellent opportunity. The role offers exposure to litigation, client interaction, drafting, and real-time problem-solving in a professional environment.

Apply now and take the next step in your legal career with Novation Legal.


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