Auction sale under safeasi procedure
Querist :
Anonymous
(Querist) 11 January 2012
This query is : Resolved
SIR I bought a property in public auction conducted by canara bank in the year 2010.I have been issued sale certificate on full payment. When I asked the bank for transfer of property in my name by way of sale deed they told me that the borrower had given 3 items of properties by way of collateral and two of them have been sold (including the one I bought) and one more item remains unsold . They assured that if all the three items are sold they will issue sale deed.They are trying to sell the property through auction but every time the auction gets stalled due to want of bidders.It has been two and half years since I bought this property and I am being given the same excuse all the time . My query is whether bank would be in a position to give sale deed even after selling that particular asset or not because when I shouted at them for not issuing sale deed one of the chief manager spoke to me in a very casual manner saying that once sale certificate is issued it marks the end of sale and what they have assured is not an obligation but out of personal interest. How much time does bank take to issue sale deed to the auction purchaser?
Raj Kumar Makkad
(Expert) 12 January 2012
You cannot be forced to wait till the third property is sold rather you issue a notice to the bank and after waiting period file a civil suit for injunction.
Deepak Nair
(Expert) 12 January 2012
Rightly advised by Mr.Rajkumar.
Issue a legal notice to the bank for executing the sale deed within a specific time period. it if fails, then you can go ahead and file a suit.
Querist :
Anonymous
(Querist) 12 January 2012
Sir I did not follow your reply. If civil suit is to be filed what relief should I be seeking from it. Because specific performance suits are not entertained by bank on the basis that they are not the owners of the property and they simply have charge over it.Please send me a judgement where auction purchaser filed a suit for sale deed in court and got relief from it ,so that it would be helpful for me to proceed.
Raj Kumar Makkad
(Expert) 12 January 2012
As there was no charge over your property so bank cannot take its possession and cannot make auction thereto so the jurisdiction of civil court is not barred in such matters. There is no requirement of citation for this purpose.
prabhakar singh
(Expert) 13 January 2012
Have they issued you a sale certificate by the authorised officer as required by rule 9(6)of THE SECURITY INTEREST ENFORCEMENT RULES, 2002,in the format given below:
APPENDIX V
[Rule 9(6)]
SALE CERTIFICATE
(for immovable property)
Whereas
The undersigned being the authorised officer of the ................ (name of the
Institution) under the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest (Second) Ordinance, 2002 (Ord. 3 of 2002) and in
exercise of the powers conferred under section 13 read with rule 12 of the Security Interest (Enforcement) Rules, 2002 sold on behalf of the ......... (name of the secured
creditor/institution) in favour of ....... (purchaser), the immovable property shown in the
schedule below secured in favour of the ......... (name of the secured creditor) by ..... (the
names of the borrowers) towards the financial facility ..... (description) offered by ....
(secured creditor). The undersigned acknowledge the receipt of the sale price in full and handed over the delivery and possession of the scheduled property. The sale of the scheduled property was made free from all encumbrances known to the secured creditor listed below on deposit of the money demanded by the undersigned.
Description of the Immovable Property
All that part and parcel of the property consisting of Flat No. ......... /Plot No. ......
In Survey No. ......../City or Town Survey No. .......... /Khasra No. ....
Within the registration sub-district ..... and District .......
Bounded :
On the North by
On the South by
On the East by
On the West by
List of encumbrances
1.
2.
Sd/-
Authorised Officer
(Name of the Institution)
Date :
Place :
DEFENSE ADVOCATE.-firmaction@g
(Expert) 13 January 2012
Lenders have created such mess all over the country. You either wait for new amendments in this law which is pending before parliament or file civil suit for specific performance.
Raj Kumar Makkad
(Expert) 15 January 2012
DRT is efficacious remedy so approach it as soon as possible.
R.Ramachandran
(Expert) 15 January 2012
I am afraid DRT has any role or judiction in this.
DRT will come into picture when the lender approaches it or a borrower or guarantor approaches it.
In this case, the querist is none of the above. Therefore DRT cannot be the appropriate Forum.
Advocate. Arunagiri
(Expert) 15 January 2012
u/s 17 (1) of the SARFAESI Ac, A third party who is having the interest over the property can approach the DRT, as long as the litigation is pending between the borrower and bank on the property.
But, in this particular case, the auction was conducted by the bank. I dont think the DRT will give any remedy to the purchaser.
