House sold as collateral for business loan in sarfaesi act

Query wise response:

1)I want to know what would happen to this remaining 1.5 crore. Would the bank deposit the rest of the amount into me

Bank is supposed to credit the proceeds in a separate account, appropriate the amount to the overdue borrowed account, (Which includes penal rate, abnormal costs for auction, legal expenses etc) and then seek direction from the mortgagor for the remaining amounts.  If the co-obligant , the owner is aware of the surplus amount, he should immediately issue a legal notice for a statement of such appropriation and should demand for making payment of such surplus amount with interest to him as expeditiously as possible.

2. Either the party (borrower) or the Bank can file such application to the Court and seek for withdrawal of the case or treat it as compromised and it is proper to get such compromise in the form of LOK ADALAT AWARD on 14th of this month.

Make a hurry to get things settled in LOKADALAT on 14th or some other date at the earliest.

Though there is no third query, the co-obligant,(Owner of the property)  whose property was auctioned has a right to seek such amount appropriated by the bank towards loan from other partners in separate cases,

Hello Mr.Gupta,

Thank you for your response. Unfortunately, at this point of time, we still have some pending cases and will not withdraw the property cases. I was intrigued by your below statement:

Though there is no third query, the co-obligant,(Owner of the property)  whose property was auctioned has a right to seek such amount appropriated by the bank towards loan from other partners in separate cases.

Ours is a joint family, so this bankrupt business was entirely handled by my brother and his sons. I am also registered as a partner in this business- does it still mean I can file a case against other partners to seek the amount Bank took from my house? Also, the total business loan was 7 crores, so the bank sold off the business property which in on my brother name and to get the remaining amount, they sold my house. Does this mean he can also file a case against other partners for getting the amount bank took from the business property?

Dear Sir,

Could you please clarify your response. Do you mean to say they will deposit the amount to me and my brother account since we are the owners of the house?

The Court shall (and can) not devide the remaining amount among co-sharers.

You have already engaged an able, competent and intelligent lawyer what is his/her advise since s/he is better informed about facts and circumstances of your case(s) ? Proceed as advised.

If you have lost faith in your lawyer you should change him/ her (lawyer) and engage another local prudent lawyer for professional guidance and further proceeding, without seeking obligation of experts on this platform who shall form their opinion on the basis of limited facts posted by you. 

However, if you are located in Delhi and feel so, may contact me with relevant records (on appointment) at: Chamber No 647, Lawyer's Chamber Block, Dwarka Courts Complex, Sector 10, Dwarka, New Delhi-110075  Cell # 9891152939 email: majjagdish@yahoo.com or visit: vakil-saab.com