Regarding providing physical possession
Akhil Verma
(Querist) 23 August 2024
This query is : Resolved
I bought a property House from Nationalised Bank in Punjab as a notice has been published by Bank under Sarfaesi Act for sale of said property. I bid for this property by checking the property paper inspected at branch level and become Highest bidder in the said eauction. As bank is not having physical possession, Bank's recovery Agency personnel Called me on the time of Bidding and act as Bank personnel and assured me Physical Possession after bidding.
Now Bank is ignoring and not replying in this matter, I have given 90 days to deposit remaining 75% amount under Sarfaesi Act. Current Owner is not vacating the house. Recovery agency is trying to get notice issued from the Tehsildar Office.
What are the option to get the property vacated even if bank unable to Provide Physical Possession.
Bank has published notice in leading Newspaper even without mentioning the details like Symbolic Possession or Physical Possession.
kavksatyanarayana
(Expert) 23 August 2024
You can instruct the bank to deliver possession of the property that you have purchased. If the bank doesn't respond you may file a suit against the bank seeking direction to deliver possession or to return the consideration amount with interest.
T. Kalaiselvan, Advocate
(Expert) 23 August 2024
the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 allows banks to take possession of a property and sell it if a borrower defaults on a loan. The act also requires banks to issue a 60-day notice to borrowers before taking possession of secured assets, which gives borrowers time to clear their dues or negotiate with the lender.
In some cases, a court has directed a bank to deliver physical possession of a property to an auction bidder. For example, in *S. K. Bakshi Vs Punjab National Bank & Ors.*, the court directed the bank to deliver a commercial building to the petitioner as soon as possible. However, in other cases, the Supreme Court has ruled that banks cannot automatically claim physical possession of a property if the auction sale is set aside.
The bank, if taking necessary action to sell the property through auction under the provisions of sarfesi act, then it has to take symbolic possession of the property and if need b it has to take physical possession too if the bidder of the auction insists on handing over physical possession and also executing a registered sale deed.
It may not be safe to purchase the property if physical possession is not handed over by the bank.
The bank to escape the further legal consequences may tell thousand reasons, but you will face problem when you try to take physical possession of the property purchased.
