Case ubder SARFAESI act 2002

Querist : Anonymous (Querist) 27 May 2018 This query is : Resolved
was participated in a e auction of property of canara bank on 06.02.2018 (EMD). I was successful bidder (single bidder) of that immovable property and paid full bid by 30.04.2018. I received sale certificate from the bank on 02.05.2018 (not registered).
Now the borrower filed writ petition in AP High court hyderabad for stay of proceedings of sarfaesi and CM order of physical possession of property.

Background of case:
The borrower had received finacial facility from the bank in the year 2014. He made default in payment in the mid of year 2016. The bank had declared account as NPA and issued demand notice of 60 days on 29.04.2017 to pay outstanding dues as per rule 13(2) security enforcement rules 2002. After that no representation received from borrower. After that the bank had issued on 16.10.2017 for symbolic possession of property rule 13(4) of security enforcement rules. There after bank has issued sale notice on 29.12.2017 to borrower and publication in news papers in 05.01.2018 for conducting e auction on 06.02.2018. The borrower immediately filed a stay petition in DRT on 31.01.2018 to stop sale proceedings. THEN DRT issued order to pay 15% in 15 days and another 15% in 15 days to stay the confirmatio of sale. The borrower has not paid any amount as per order and after 30 days order automaticly vacated. The bank has also got the CMM order to tookover the physical possesion of property on 26.04.2018.

Now the borrower has filed writ petition in high court to stay the sale proceedings and CMm order on 24.05.2018.

Please tell me options avilable to auction purchaser

Is there any chances to get order infavour of bank

What are remedies available to bank

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Querist : Anonymous (Querist) 27 May 2018
Please give me expert opinion

Ms.Usha Kapoor (Expert) 28 May 2018
Bank will not get rights unless debtor pays full or part payment of debt. So bank selling the borrower's property through e auction under Sarfaesi Act is justified.Even now if the borrower deposits 1/2 money the court may set aside the sale and the Bank gives time to the borrower to pay balance money.There doesn't seem to be such possibility in the horizon.Bank is within its rights to enforce its rights on the borrower through e auction.

Guest (Expert) 28 May 2018
Depends solely on the merits of the case. No definite opinion can be formed without going through the writ petition of the debtor. Probability of success or failure of any presumption can be 50:50.

Asgher Mahdi (Expert) 28 May 2018
On what ground the borrower has approached the stay before the HC? The only remedy the borrower may get by the HC is either may get some more extendable time to clear its dues and I hope the HC will not quash the proceedings as I feel no specific ground for stay is not mentioned here.

P. Venu (Expert) 28 May 2018
Yes, it is impossible make any definite suggestion. Law and procedure on this aspect is still in a flux.

Ms.Usha Kapoor (Expert) 29 May 2018
I stick to the same opinion.

Querist : Anonymous (Querist) 29 May 2018
Writ Petition contains grounds of 1. Bank has not follow the rules of securities enforcement rules 2002 2. Valuation is not done correctly below saying that below market value. 3. Single bidder participated (Note : At the time of BID, proceedings under DRT is going on, so others are not interested to take risk)

Ms.Usha Kapoor (Expert) 02 June 2018
On the above tenable grounds if you file writ potion borrower may GET STAY IN Highcourt .

Case ubder SARFAESI act 2002

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