Sale under safaesi act
Peethambaram P
(Querist) 31 January 2016
This query is : Resolved
One of my family members have purchased a Property throgh e-auction under Sarfaesi Act 2002U/s 13 Rule 12. Eauction date 29.6.15 balance paid by raising a loan with the same Bank on 13.7.2015. Bank issued Sale Confirmation letter on 30.6.15. Property registered in the name in July'15. But later on we came to know that the property is under lock and key. Bank filed affidavit before CMM for physical possession.(1) Who has to bear the legal and other expenses for the proceedings for physical possession? The Bank or the Bidder/borower? (2) Whether the bidder/borrower can claim refund of interest on the loan applied till the date of handing over physical possession?
P. Venu
(Expert) 01 February 2016
Who has put the lock and key?
Peethambaram P
(Querist) 01 February 2016
The Borrower. He left the place. absconding since Oct.2014 Declared NPA in December 2014. Hence, Bank took symbolic possession in May 2015 and advertised for e-auction in June 2015.
Raj Kumar Makkad
(Expert) 01 February 2016
It was upon you to check the building thoroughly prior to taking part in the auction. Banker is now safe showing delievered physical possession to you under your signature on its papers. Practically you are liable to get the vacation of the property from the unauthorized person though legally it is the liability of the banker.
Rajendra K Goyal
(Expert) 02 February 2016
Agree with the expert raj kumar makkad.
RAJU O.F.,
(Expert) 18 April 2016
It is the duty of the seller Bank to hand over vacant possession. Bank has to bear the expenses for it, if proceeded through CMM Court or District Magistrate.
