Sarfaesi act, drt case

since, your wife is a guarantor /  co-obligant , she is entitled to pay loan dues. but, she is not having right to receive title deeds since the title deeds are stands in your name only. 

1. is case still valid and live? she moved to DRT against sarfaesi act, >> court orders to pay, >> she paid, no action was taken by bank as per court's orders then.

--Yes, the account is still live.  You may receive the SARFASI notice again for the remaining amount. 

2. if case is live and open and valid, Being a third party to main home loan, can she ask to restructure home loan?

--No she cannot ask for restructure home loan.  You can ask.  You both of you have made a mistake.  Instead of paying part amount, you would have bargained with the Manger of the Bank for one time settlement and then you would have paid the OTS amount and compromise the case.  The Bank people have taken your payment as part payment only and they will bounce upon you again for the remaining amount. 

3. can anyone or any third party pay for loan outstanding, to bank, in DRT court?

--Yes, any third party can pay for the loan outstanding to the Bank not in the court. 

4. Can DRT order to handover house papers to her, if she pays full outstanding and asks for papers.

--Court will not handover papers to her.  It will hand over the papers to you only. 

1. After directing your wife to pay Rs.4.5 Lakhs, did DRT dispose of the SARFAESI Application filed by her?

2. If yes, then did the Bank take futher action u/s13(4) of the SARFAESI Act,2002 to enable your wife to further file the application for restructuring the loan?

3. However, since she is the co-borrower for the top up loan repayment of which has been defaulted, she has taken the advantage and filed the petition for the restructure of loan,

4. However, DRT has no binding jurisdiction over the lending Bank for giving them direction to restructure the loan,

5. It is upto the Bank to accept the proposal to be submitted before them, for restructuring the loan.

I very clearly understand your question that whether the title papers/ documents will be handed over to her even if she is repaying the the loan amount in full, right?, so you are worried about the property and not about the loan repayment (?), please understand that the title deeds will be handed over to the title holder or the first applicant on discharge of loan amount in full.