Sukhbir Davinder Bedi (Manager) 08 November 2014

Limitation for appeal against auction by banks

Sir

I am interested in buying one property an agricultural land put up for auction by state bank. The property in question is held under mortgage by three different banks and the accounts in all these banks had been declared NPA & due to demarcation dispute of the joint land DRT has authorised one bank for Auctioning of the entire land and distributing the sale proceeds among three of them in proportion to their respective outstandings.

The borrower is absconding for last three years and the property has been put up for sale for Four times each time Auction being failed due to weak market sentiments.

Now I am interested to bid for that property but I apprehend litigation harrassment at the hands of Borrower.

Kindly Answer :-

Can the Borrower in any way harass me by filing appeals/ Stay application against Auction process of Banks .

After Sale certificate is issued in my favour by the bank can still the sale process could be set aside by the borrower through DRT/ DRAT/ High Court/ Supreme Court..

What is limitation period a borrower can challenge auction in DRT / High Court after issue of sale certificate.

How can I make sure that after purchasing the above property in auction through proper process , i am not embroiled in any sort of dirty litigation by the borrower or any third Party.

Kindly Reply

Thanks & Regards

Sukhbir Davinder Bedi

Reply Follow

3 Replies

Dr J C Vashista (Advocate) 09 November 2014

Consult local lawyer.

Advocate Ravinder (Advocate/Attorney) 11 November 2014

There is nothing to worry. You can go for auction. The borrower may get some stay order from High Court for the time being by paying some part payments and promising to pay the balance within few weeks. But, the High Court is also very stringent towards the borrower and unless he pays the balance amount within the granted time, the stay will be vacated and the scope of auction is again restored. It is better to consult any branch of bank (preferably scheduled bank) near to your place and consult the manager. He will guide you.

T. Kalaiselvan, Advocate (Advocate) 13 November 2014

The borrower will be barred by limitation by the time you take possession of he property after successfully bidding the auction. If you still apprehend danger from the borrower or feel it to be a risky affair, better stay away from the deal or proposed purchase.