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 August 2025 – Remote Legal Opportunity at Settlementofloan

Legal Internship August 2025 is now accepting applications at Settlementofloan, India’s premier debt resolution and financial restructuring platform. This internship is designed for ambitious law students looking to deepen their understanding of financial law, insolvency, compliance, and tribunal practice. It is a unique remote opportunity to work directly on live legal cases involving real clients, under the supervision of experienced legal advisors.

About the Organization

Settlementofloan is a renowned platform that helps individuals and businesses resolve their debt-related challenges through structured financial and legal solutions. Headquartered in Gurugram, the firm has successfully resolved thousands of cases, helping clients avoid bankruptcy and recover financial stability. With over 60 experienced professionals from legal, financial, and business domains, Settlementofloan is committed to providing result-driven services, including:

  • Personal loan settlement
  • Business loan restructuring
  • Legal representation in Debt Recovery Tribunal (DRT) matters
  • Advisory services under SARFAESI, IBC, and RBI guidelines

Internship Type

  • Position: Legal Intern
  • Internship Name: Legal Internship August 2025
  • Mode: Remote (Work-from-Home)
  • Duration: 1 Month
  • Start Date: August 1, 2025
  • Stipend: Not specified (may vary based on performance or team availability)

Key Responsibilities

As a legal intern at Settlementofloan, you will gain insight into India’s financial legal ecosystem. The responsibilities under the Legal Internship August 2025 include:

  • Assisting lawyers with real debt settlement and restructuring cases
  • Drafting client memos, legal notices, settlement agreements, and reports
  • Conducting legal research on financial law, borrower rights, and DRT processes
  • Understanding compliance protocols and RBI guidelines applicable to defaulters
  • Preparing documentation for client meetings and tribunal appearances
  • Analyzing case laws related to SARFAESI Act, Insolvency and Bankruptcy Code (IBC), and RBI circulars

Ideal Candidate Profile

The Legal Internship August 2025 is ideal for law students who want hands-on experience in financial legal practice. You are a strong fit if you:

  • Are currently enrolled in a 3-year or 5-year LL.B. program
  • Have a demonstrated interest in financial law, DRT, SARFAESI, or IBC
  • Possess strong legal research and writing skills
  • Are proficient in MS Word, legal databases, and online research tools
  • Can work independently and manage timelines in a remote setup
  • Are proactive, detail-oriented, and eager to learn about client-focused legal strategy

Candidates with prior internship experience in litigation, debt recovery, or corporate law will be preferred.

Skills You Will Gain

By the end of the Legal Internship August 2025, you will gain:

  • Practical exposure to debt restructuring and tribunal processes
  • Drafting skills for legal documentation and settlement agreements
  • Legal interpretation of RBI regulations and financial statutes
  • Research experience in insolvency and debt-related laws
  • Insights into the intersection of law, finance, and negotiation
  • Real-world problem-solving and remote communication experience

Why Choose This Internship?

Settlementofloan is not just a legal platform—it is an ecosystem of financial solutions. Interning here means working in a fast-paced, real-world setting where law is directly applied to help people in distress. You will learn not just the black letter of the law, but also the art of client interaction, risk mitigation, and legal strategy design. The internship is a resume-booster for those planning to pursue careers in litigation, financial compliance, corporate law, or insolvency practice.

Certificate & Recognition

Upon successful completion of the Legal Internship August 2025, interns will receive:

  • A digital internship certificate
  • Performance feedback from the legal team
  • Opportunity to be considered for future paid internship or full-time roles
  • Referral or LinkedIn recommendation (based on exceptional performance)

Application Process

To apply for the Legal Internship August 2025, email the following:

  • Your updated CV
  • A short cover letter (100–150 words) explaining why you’re interested in this internship

Send your application to: info@settlementofloan.com
Subject line: Legal Internship Application – August 2025

Deadline to Apply: Applications will be accepted on a rolling basis until all slots are filled. Early submissions are strongly encouraged.

Take the first step toward a career in financial law. Join the Legal Internship August 2025 at Settlementofloan and gain the skills, exposure, and experience that will shape your legal journey. This is your opportunity to apply legal knowledge to real-world financial disputes—all from the comfort of your home.


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