Dear Friends,
Section 13(8) of SARFAESI Act 2002 deals with the option to stop/cancel the brocess running against the borrower if he/she paid all dues with charges to Secured Creditor/Bank before sale or transfer
"13 (8) If the dues of the secured creditor together with all costs, charges and expenses incurred by him are
tendered to the secured creditor at any time before the date fixed for sale or transfer, the secured asset shall
not be sold or transferred by the secured creditor, and no further step shall be taken by him for transfer or sale
of that secured asset."
BUT UNDER THE SECURITY INTEREST ENFORCEMENT RULES, 2002
9. Time of sale, issue of sale certificate and delivery of possession, etc.
(3) On every sale of immovable property, the purchaser shall immediately
pay a deposit of twenty-five per cent of the amount of the sale price, to the authorised
officer conducting the sale and in default of such deposit, the property shall forthwith
be sold again.
(4) The balance amount of purchase price payable shall be paid by the
purchaser to the authorised officer on or before the fifteenth day of confirmation of
sale of the immovable property or such extended period as may be agreed upon in
writing between the parties.
Question
Now, whether it is according to law if Bank calcel the bid after accepting 25% from Successful Bidder and received cheque of rest 75% within a period of 15 days and than cancel the aforesaid bid and return 25% amount and bidder's cheque (75%) on the ground that Borrower had paid his dues to bank even after passing 30 days from Sale Notice and accepting a Successful bid?
