Under sarfaesi act
Querist :
Anonymous
(Querist) 29 May 2018
This query is : Resolved
I was participated in a e auction of property of canara bank on 06.02.2018 (EMD). I was successful bidder (single bidder) of that immovable property and paid full bid by 30.04.2018. I received sale certificate from the bank on 02.05.2018 (not registered).
Now the borrower filed writ petition in AP High court hyderabad for stay of proceedings of sarfaesi and CM order of physical possession of property.Writ Petition contains grounds of 1. Bank has not follow the rules of securities enforcement rules 2002 2. Valuation is not done correctly below saying that below market value. 3. Single bidder participated (Note : At the time of BID proceedings under DRT is going on, so others are not interested to take risk)
Background of case:
The borrower had received finacial facility from the bank in the year 2014. He made default in payment in the mid of year 2016. The bank had declared account as NPA and issued demand notice of 60 days on 29.04.2017 to pay outstanding dues as per rule 13(2) security enforcement rules 2002. After that no representation received from borrower. After that the bank had issued on 16.10.2017 for symbolic possession of property rule 13(4) of security enforcement rules. There after bank has issued sale notice on 29.12.2017 to borrower and publication in news papers in 05.01.2018 for conducting e auction on 06.02.2018. The borrower immediately filed a stay petition in DRT on 31.01.2018 to stop sale proceedings. THEN DRT issued order to pay 15% in 15 days and another 15% in 15 days to stay the confirmatio of sale. The borrower has not paid any amount as per order and after 30 days order automaticly vacated. The bank has also got the CMM order to tookover the physical possesion of property on 26.04.2018.
Now the borrower has filed writ petition in high court to stay the sale proceedings and CMm order on 24.05.2018.
Please tell me options avilable to auction purchaser
P. Venu
(Expert) 30 May 2018
It appears that the query has been posted earlier and some suggestions were offered.
