Rights of auction purchaser
nagarajan
(Querist) 02 September 2010
This query is : Resolved
Sir,
What are the rights of the auction purchasers (participants) who had emerged as a successful bidder in the auction process conducted by the bankers and deposited 25% of the bid amount, and after 13 to 14 days the banks rejects that the bid received is lower and the sale can not be cnfmed in favour of him and returns the money to him. What to do. in the auction conducted more than 20 people participated and the win amount is Rs.500/- more than the reserve price. What can be done. The sale is done by a public sector bank under Sarfesai Act and what to do now
R.Ranganathan
(Expert) 02 September 2010
Once the highest bidder is announced and declared the Bank has to accept it.
Rajeev kulshreshtha
(Expert) 02 September 2010
The bank cannot cancel the bid saying it lowest when it has declared it highest previously.
s.subramanian
(Expert) 02 September 2010
You can approach the high court by way of a writ to challenge the cancellation by the bank which is outrightly illegal.
Adinath@Avinash Patil
(Expert) 03 September 2010
the bank can't cancel bid after declaration, you can approach high court.
nagarajan
(Querist) 03 September 2010
The Bankers are saying that the as the auction sale is subject to the approval of Asset recovery committee, the receipt by the bank or the highest bidding above the reserve price do not imply any automatic rights and always subject to approval of the committee of the bankers, is it right in order and how the auction purchaser stand in this context.
the bankers say that there is no contract to sell do not arise and it is sarfesai act sale which overrides all. Is it right
Surrender K Singal
(Expert) 04 September 2010
Yes, you may refer to the terms of Auction notice and its governing Act;
Quite possible, highest Bid might be SUBJECT to acceptance by the ARC only upto whence your 25% remains as EMD only !
