Our deceased Father took a Home Loan from a Bank to purchase a Flat. Father died four years ago. After death of Father, no repayments were made to the Loan Account. As per Loan Agreement, this Loan stand automatically recalled on death of our Father. Legal Heirs did not sign any Continuing Guarantee to take over the Loan. Bank initiated SARFAESI proceedings to recover the Loan Amount and fixed Reserve Price as Rs.30 Lakhs. Bank conducted one Ordinary Auction and one E - Auction. Still no Bidders appeared to take over the Flat. As Legal Heirs, we are NOT READY TO CONSENT further reduction of Reserve Price, as we feel the Reserve Price is already fixed at a low level, and as we also feel there is a concerted effort by regular Bank Auction Bidders to artificially reduce price of our Flat. There is no provision in SARFAESI Rules to reduce Reserve Price without consent of Legal Heirs. There is also no provision in SARFAESI Rules to conduct Auction a second time, either with same Reserve Price or with reduced Reserve Price. Bank cannot approach Court or DRT because Limitation Period is over.
THEN, WHAT MIGHT BE THE FUTURE COURSE OF ACTION OF THE BANK IN THIS CASE ?
