Securitisation & Reconstruction of Financial Assets & Enforcement of Security Interest
A to Z in Banking | Bhushan Bhatia
150 MCQs | Updated May 2026
🔴 Latest Updates 2024-2026:
• SC 2024 — Celir LLP v. Bafna Motors (2024) 2 SCC 1: Right of redemption under Section 13(8) ends on the date of valid publication of auction notice — not on execution of sale deed.
• SC 2025 — M. Rajendran v. M/s KPK Oils (2025 INSC 1137): Reaffirmed — right of redemption extinguished upon valid publication of sale notice, not merely on conveyance.
• SC 2025 — SBI v. Tanya Energy Enterprises (2025 SCC OnLine SC 1979): OTS (One Time Settlement) is a concession, not a right — courts cannot compel banks to grant OTS.
• SC 2025 — Section 13(8) Amendment retrospective? Supreme Court examined whether 2016 Amendment to Section 13(8) is retrospective — decided it is NOT retrospective (2025 INSC 1144).
• SC 2026 — Chaitanya Bahuuddeshiya Shikshan Prasarak Mandal v. Auxilo Finserve (2026 INSC 408): SARFAESI debt recovery cannot be indefinitely stalled by borrowers.
• DRAT 2026: Bank must provide mandatory 30 days' notice before auction under Rule 8(6) — failure vitiates auction sale (Gupta Trading Co. v. Bank of India).
• DRAT 2026: Extensions for balance bid amount payment (up to 90 days) are discretionary, not mandatory — forfeiture of 25% deposit on default is valid (PNB v. Birendra Kachhap).
• NPA threshold: SARFAESI applies only where outstanding secured debt exceeds ₹1 lakh AND is not less than 20% of the principal and interest due.