Sarfaesi
ramsha
(Querist) 04 March 2013
This query is : Resolved
Can the secured creditor cancel the earlier auction conducted, refund the deposit of the successful bidder and initiate re-bidding process under the SARFAESI Act.
Nadeem Qureshi
(Expert) 04 March 2013
Dear Querist
there is a specific time period of 30 days if the main borrower is ready to pay the amount to secure creditor the secure creditor have right to do that but after 30 days the secure creditor have no right to refund the deposit of successful bidder.
Feel Free to call
Nadeem Qureshi (Advocate)
Chember No. D-720, Karkardooma Court, Delhi
email : nadeemqureshi1@gmail.com
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Raj Kumar Makkad
(Expert) 04 March 2013
If auction has beeen confimed after waiting period, such creditor has got no opportunity to agitate as desired.
R.K Nanda 
(Expert) 05 March 2013
he cannot do it.
K.K.Ganguly
(Expert) 05 March 2013
Yes. The Secured Creditor being the Bank can of course cancel the aution provided there are acceptable reasons like,
1) DRT has set aside the SARFAESI Proceeding, even after the said sale, leading to the said sale finding some fault in it,
2) The buyer failed to pay the agreed amount within the stipulated period,
3) The buyer opted to take back the EM &/or the 25% amount paid stating that unless physical possession is given to him he will not pay the balance,
4)DRAT has set aside the Sale,
5)Any other valid and acceptable reason.
J K Agrawal
(Expert) 06 March 2013
Apart from all these there may be so many other circumstances when sat aside of auction is possible. it depends case to case.
Raj Kumar Makkad
(Expert) 08 March 2013
Respected Ganguly and Aggarwal! One has to discuss the air his opinion on he basis of facts given by querist and has not to anticipate the imaginary happenings as if the base of your replies. If such may be the replies, none of the querist can get the actual reply he wants to put. We should not ignore that the querist are not lawyers rather are innocent persons who want reply of the facts put up by them. We lawyers may take much time in arguing and counter arguing on any legal issue but if the same relates to a poor querist, we need not go to probabilities and should confine only on given facts.
K.K.Ganguly
(Expert) 08 March 2013
Respected Makkad Sab,
The querist has asked whether the auction can be cancelled by the creditor and deposite refunded. It was not mentioned whether full payment was already made or not or whether sale has been confirmed or not. It was not even clear whether the stated deposite was EMD or 25% of the bid amount or the full bid amount. Without knowing the complete fact, it is not possible for me to convincingly state that the sale can not be cancelled and deposite refunded.
In absence of the complete fact I have tried to list out the circumstances under which auction sale can be cancelled to enable the querist to fit in his unexplained situation with any of the listed circumstances.
