Sarfaesi act

preet (Querist) 16 May 2014 This query is : Resolved
my client take lone from a bank before 2 years, after that he is unable to pay loan amount. Bank take action and send notice under sarfaesi act. The case of sarfaesi act runs for the one year in DRT. Notices of auction is also publish in newspapers. In between party arrange whole amount of loan and pay to bank. and case is finish.
My query is that when my client pay all amount to bank the charge
Loan Amount + Interest Amount + Penalties + expenses + Auction Charges.
Is bank is in position to take "auction charges" from party, When auction is not take place. If yes then in what section or in what act?

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Devajyoti Barman (Expert) 17 May 2014
Now file an application in DRT u/s 17 of the Act.
On the basis of full and final payment, ask the Tribunal to set aside the auction notice and sale process.

Guest (Expert) 17 May 2014
Well advised.

Sankaranarayanan (Expert) 17 May 2014
I do endorse mr barman

Rajendra K Goyal (Expert) 17 May 2014
If the Bank has paid in the process of auction, Bank will charge the expenses done for auction process.

Bank is not going to claim again from you once paid. For cancellation of auction notice may approach DRT.

malipeddi jaggarao (Expert) 17 May 2014
What do you mean by "auction charges". They may be for preparation and publication of notice though auction is not conducted as the entire dues were paid by your client. If the bank incurs such expenditure, they have right to claim from the borrower. If they have not incurred, you can as well settle the matter with the Bank officials who will happily agree to waive such claim which is not incurred. But filing an application file an application in DRT u/s 17 of the Act is necessary to conclude the case.

c.p.s. ramachary (Expert) 17 May 2014
I fully agree with the opinion of Expert Sri Malipeddi Jaggarao

Advocate. Arunagiri (Expert) 17 May 2014
I agree with the views of expert Mr.Jaggarao.

Biswanath Roy (Expert) 17 May 2014
Although auction was not conducted even then borrower has to pay charges for processing and publication for auction.

T. Kalaiselvan, Advocate (Expert) 17 May 2014
I too agree with the opinions of Mr.Jaggarao on this issue. The bankers using discretion can waive off the so called auction expenses on representation by the debtor.

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