Answer : Ordinarily (not applicable to Sarfaesi Act,2002 as it stands today), the right of redemption can be exercised till the sale of the secured assets is complete by registration of the sale deed. However, the provision applicable to Sarfaesi Act, 2002 has changed after the amendment of Section 13(8) of Sarfaesi Act, 2002 in the year 2016. Before its amendment in the year 2016, Section 13(8) of Sarfaesi Act, 2002 was as follows :- 

“13(8) If the dues of the secured creditor together with all costs, charges and expenses incurred by him are tendered to the secured creditor at any time before the date fixed for sale or transfer, the secured asset shall not be sold or transferred by the secured creditor, and no further step shall be taken by him for transfer or sale of that secured asset.” 

The Supreme Court in the case of Mathew Varghese –Versus- M. Amritha Kumar reported in (2014)5 Supreme Court Cases page 610 , interpreted unamended Section 13(8) of the Sarfaesi Act, 2002 and held that a borrower can exercise his right of redemption till the completion of sale by registration of sale deed or sale certificate. 

By the 2016 Amendment Act, Section 13(8) of the Sarfaesi Act, 2002 was amended and it now reads as follows: 

“13(8) Where the amount of dues of the secured creditor together with all costs, charges and expenses incurred by him is tendered to the secured creditor at any time before the date of publication of notice for public auction or inviting quotations or tender from public or private treaty for transfer by way of lease, assignment or sale of the secured assets,-

(i) the secured assets shall not be transferred by way of lease, assignment or sale by the secured creditor; and

(ii) in case, any step has been taken by the secured creditor for transfer by way of lease or assignment or sale of the assets before tendering of such amount under this sub-section, no further step shall be taken by such secured creditor for transfer by way of lease or assignment or sale of such secured assets.” 

It has now been held by the Supreme Court in the case of Celir LLP. Versus Bafna Motors (Mumbai) (P) Ltd. reported in 2023 SCC online SC1209 that after the amendment of Section 13(8) of the Sarfaesi Act, 2002 in the year 2016, the right of redemption can be exercised at any time before the date of publication of notice for public auction or inviting quotations or tender from public or private treaty for transfer by way of lease, assignment or sale of the secured assets. In other words, right of redemption cannot be exercised after a sale advertisement is published in news paper.