Can cheque payment be made for emd/ 25% for sarfaesi bidding

If the amount is received before that last date by the bank, it is valid though technically it is not correct.  On this count alone, you can not argue, as it is in between Bank and other party.  As bank is already having the money and the process involved is transferring from one account to another account.

Thank you Shri GLN Prasad for your response.  I am curious though.  If cheque payments can be made for EMD, and time for EMD also extended for one person, would it not have been better had they said this is the published terms and conditions?  The idea is to get the highest bid amount, and this way they could have gotten more bids right?  Also, why even place a deadline for receipt of EMD, when they arbitrarily extend it for one known person to submit it on the day of auction?  Something does not seem right here!

You can find replies to all your questions in my response.  Bank has not forbidden or barred from any others in filing such bids.  Infact, in several cases, when there are no bids, banks encourage their own customers to bid the same to recover the amount.  If the borrower is interested, he can also encourage his friends to bid and there are no restrictions.  The institutions are only concerned to recover the amount and there are fair chances to borrowers also.  There is no link in between borrower's repaying the amount as per agreements and Bank opening the bids.  If borrower thinks that bank is not fair and proper, he can always bring injunction order from a competent court with such reasons and stop further actions of bank.

@G.L.N.Prasad: Again thank you sir, for your succinct and prompt responses.  I thought it was settled law that Auction Rules need to be followed meticulously under Sarfaesi Act.  The Act is unique in that that contrary to other established proceses where Adjudication precedes Execution, under Sarfaesi Act the Banks are equipped under the Act to first Execute and then provide a mechanism for Adjudication by the Borrower.  As such if a Bank publishes Auction rules that REQUIRE someone to submit Earnest Money Deposit to be submitted via RTGS/NEFT/Demand Draft by a PARTICULAR date BEFORE auction, and then allows just one bidder to violate the auction rules by paying by CHEQUE on the day of auction, I believe that this is an unconsionable action by the Bank.  I was seeking advice from the learned panel posters here, for the DRT that I am dealing with pretty much functions as an extension of the Bank.  There have been FOUR consecutive IA's that have been denied by the Hon'ble PO, which have then been allowed by the Appelate Authority. 

The action of the Bank is hit by the Latin maxim “expressio unius est exclusio alterius” (=meaning thereby that an authority clothed with statutory power should perform his action according to law prescribed otherwise do not perform at all.).  I am not a lawyer, but have started reading law books just to navigate this morass.  The Sarfaesi Act and Rules by itself is not that volumnous.  Yet I am appalled at the ignorance of even some DRT lawyers about the Act, and the callousness of the Presiding Officers!  I am left wondering about the common man, not the Corporates and the well heeled.  How is the common man to find Justice under these circumstances?  I KNOW that I am correct in my observation.  I was hoping for validation, and for citations such that I can prevent a long distance travel to appeal my IA once it is denied by the Presiding Officer. This has become the routine for me!

Sir,

I am not an expert.  I have in my first post provided an opinion that recovery of dues by Insitution is important to them and if bidders are not coming forward, the officials should hunt for them and look for early disposal of the loan.  The law permits borrowers also the same process to get higher bidders.  I know bankers that made overdrafts and helped the bidders to close the  existing  NPA

I am not mixing up issues.  The issue is Bank accepting their own cheque as EMD as it is just a book entry.  Not accepting your IAs in another issue not connected.

I have also suggested that you can contact advocate who can agree with your opinions for cancellation of the bid.

In our case we have such a bigger problem .  For purchaing a property, a bidder a politician submitted a bid which was finalized.  The parties approached HC, and HC has directed the parties to offer single rupee extra over the bid and deposit the amount in HC, so that they can order the Bank.  The parties retracted and the issue is pulling from last five years.  Now the Bank is not getting bids though they are prepared even to accept several crores less than their first accepted bids.

My sincere prayers are that everyone has his own story and one has to appreciate the role of the others.  Comparing a banker that recovers sincerely public money without single paisa benefit is being branded as Shylock, a jew who has his own axe to grind.  It is a thankless job.  All borrowers are not definitely angels, as even angels demand prayers for granting any boon.  I sincerely pray for a settlement.  All borrowers and Bankers never face any problem and most borrowers show great respects to Banker for timely help.  The problem comes only with the case of wilful defaults and they find fault with Bankers and do not realize the help they received in time.

You are absolutely correct in that everyone has their own story to tell.  I read yours, and empathize with your situation, and at face value.  I am not judging you, or casting aspersions on your claim. 
In the light of all the skeletons tumbling out of the cupboard about unscrupulous bankers, and their collusion with crooked customers, it is surprising that you continue to think that Banks are all that above board and honest in their dealing with customers.  My conscience alone knows what I have been going through.  I am not a wilful defaulter by any stretch of the imagination.  But that is my story of course. 
I wish you well, and hope it works out for you with the situation faced by your bank and bidder. Thanks for your prayer for a settlement.