Banking auction
Vinesh K Chhaya
(Querist) 20 March 2012
This query is : Resolved
A nationalised bank attached an immovable property one person had entered in auction and bid as highest bidder. After 3 months another person knowledged from the notice appeared on the property...and contacted to the bank and the officer of the bank advised him to send draft as bidder for EMI of 10% of upset price...The bidder did so...The main Officer returned the demand draft of EMI to the bidder with a letter indicated that you can not take part in auction after long time of 3 months. The sale deed is not done till today. means the property is not completely transfer till today and the 2nd bidder want to purchase with highest rate than the highest bidder before. so what the provision can be apply and which court has jurisdiction to take part in bid?
ajay sethi
(Expert) 20 March 2012
Debt Recovery Tribunal . Recovery officer .
bid has to be confirmed by DRT . bid wont be confirmed till full payment is made .
contacta local lawyer
Anirudh
(Expert) 20 March 2012
The Bank is quite right. The bank announced auction at such and such time. Once that time gets over and whoever took part in the auction and was found to be the highest bidder would get his right. Others, who come after the fixed time of auction, even if offering much more price than the bid price, still they cannot stand a chance! If this is permitted, then the Bank can never conclude the sale at any point of time, for even just before signing of the Conveyance Deed, some one can come at the last minute and say I am here to give you more money than what you are agreeing! Then where is the end?
Guest
(Expert) 20 March 2012
Bid terms are not liable to be modified after the auction is already completed. If the new bidder was advised by any bank official to deposit bank draft as earnest money even after a single day of the due date of deposit of EM and more particularly after the bid is held, he was responsible for wrongly advising him.
The interested person is however free to approach the successful bidder with the intention to purchase the property, but as of a different transaction direct with the successful bidder after the property is legally transferrd to him. For any more advice, the person concerned (new bidder) can contact through email [dcgroup1962@gmail.com], if liked.
Raj Kumar Makkad
(Expert) 20 March 2012
In my view, you shall would have deposited 25% payment within a period of 24 hours of bidding/auction but you failed to do so and now after a lapse of 3 months have approached to the banker to accept payment from your side. The banker may refuse it had it offered the bid to the runner up of auction after waiting for the period of 24 hours as per rules pronounced but on the same price which was offered at the time of auction.
Bank cannot entertain second auctioner merely on the ground that the offer price is of higher side. You can challenge this before the civil court and can obtain stay order against such arbitrary action of the bank.
Shonee Kapoor
(Expert) 20 March 2012
I agree with Ld. Makkad.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Anirudh
(Expert) 21 March 2012
I think Mr. Makkad has not completely read the query.
According to the querist, the person who approached the bank with higher price DID NOT TAKE PART IN THE AUCTION at all.
Therefore, Mr. Makkad's assumption that he did not pay 25% within 24 hours etc., or the question of any offer having been made by the bank to a runner etc., has no basis and no relevance.
Mr. Makkad is also missing the point that the querist is for the person who approached the bank after 3 months with higher price. Therefore, when the bank refused to accept such a person, who was not the participant in the original bid, the question of the querist challenging the action of the bank in any court also does not arise.
I think it will be better for experts to spend some time on the query and understand its implications fully, before jumping to answer.
