X has a Term Loan of ₹ 20.00 Lakh at ABC Bank with outstanding liability of ₹ 25.00 Lakh on 31.03.2024, this account was classified as NPA as on date due to overdue instalments. Bank demanded repayment of the loan u/s 13

In the given case, the borrower, X, cannot deny the payment of the balance amount of ₹ 2.50 Lakh. The Supreme Court has observed in the case of Bank of Baroda v. M/s Karwa Trading Company & Anr. (10.02.2022 SC) that the borrower needs to pay all outstanding dues to redeem the secured asset under Section 13(8) of the SARFAESI Act. A borrower cannot redeem the mortgaged property by just paying the reserve price for the auction or the highest bid amount as per the public auction conducted pursuant to the SARFAESI Act. The Supreme Court has again highlighted the legal principle that the liability of the borrower continues until all the outstanding dues of a borrower are satisfied in full either by payment by the borrower or by enforcement of security on the assets of a borrower. The borrower will continue to be liable to pay the amounts that are outstanding even after the sale of the secured asset, if such security enforcement does not satisfy the liability of the borrower in full. Hence, on the basis of the above, Mr. X cannot deny the payment of the balance amount, as his liability extends to the full outstanding dues, not just the amount realized from the sale of the mortgaged property.