Borrowers immovable property becomes npa

It depends on the amount outstanding, the market value and the one person's relationship with borrower, and finally on integrity of Bank officials.  Banker is having such discretion to postpone the auction at a future date.

You have not posted the material facts.

Hello,

If bank auction property and only one person bid for property in auction in that case bank will proceed to sale property to that person. That person has to compliy with all terms and conditions of auction. However bank will take final decision to sale him or not. 

It depends upon the auctioneer, his discretion shall count.

Hello All,

Thank you for the responses. 

A person who is a guarantor of the loan and which has become eventually an npa case, has not been settled for almost 9 years.

The guarantor wants to pay only outstanding amount without interest. Is it permissible??

Regards,

This is a separate query on another issue in which you have to open another post.   Members are not in a position to guide you as the issue is at the discretion of a banker.  It all depends on the worth of the guarantor.   If the guarantor's worth (otherwise known as co-obligant) is more, then bankers may not agree.  The relationship between the guarantor, capacity must also be considered (SUch as wife is borrower, the husband is guarantor, the property of high value offered as security by husband)  Some bankers can understand the delicate position of a stranger and innocent guarantor and can allow with nominal interest (not less than 8% simple from date of NPA).  So first contact and give the offer in writing, the courts in India may be conducting special settlement days in a year under Lokadalat cases, wherever there is a possibility of compromise.  The Chairman of Lokadalat can prevail on the banker and can convince Banker for a reasonable amount.   It all depends on such situations.