Manoj Kumar 16 October 2020

Sarfaesi act

If a property is being sold by the bank through E Auction after following all laid down process but there is a single bidder , who paid 10% well on time and participated in the bid with reserve price . The defaulter approached the local DRT on same day of auction and the DRT instructed the bank to hold the process till next date . It accepted the objection that there was single bidder and bidder participated with reserve price only . Is there any binding for single bidder or any high courts / supreme court orders in this subject matter . Pls help , very urgent for a running case

Reply Follow

3 Replies

Adv Vinay Mathur + 8447131770 (Advocate) 16 October 2020

As per me if postponement of the sale is good for the judgment-debtor's than they can do it.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 17 October 2020

Is the Reserve price nearer to the present market rate?

The Bidder only bid and his bid is not yet accepted. And legal action was resorted to stop the Auction. At this stage, Bidder has no binding. I feel, it's unlikely that the bid would be accepted as there is a single bidder. But, it depends upon various factors which the bank takes into consideration while they proceed further. It's better to discuss the matter with the bank concerned for amicable settlement instead of resorting to filing cases in Court, as in the latter it's not known when matter would be settled because of which interest burden goes up for the Borrower and for Bidder unnecessary litigation besides locking up of his deposit amount for bidding.

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108) 17 October 2020

1. IF a lone bidder bids and settles at Reserve Price (which would be obviously lower then prevailing market price), THEN the original defaulter is at loss, since his property is being auctioned at the lowest price.

2. Further defaulter is entitled to approach HC to stop the auction even after sale certificate is issued and there is no legal bar to this.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com