Query under SARFAESI Act


Sir,

I have purchased a property auctioned by the Indian Bank.  One of the clauses of the tender form is that the property can be inspected before submission of tender.  However, the Bank failed to show the property for examination until tenders opened.  After the bid is won by me, I found that the house is in intensive damaged condition.  About 50,000/- I incurred for repairs.  More over, I have paid around 25,000/- towarads Municipal Tax, Electricity charges and Maintenance charges due to the Apartment Owners Association.  Without clearing all the public charges and rent upto the date of sale, as per Section 55 of the Transfer of Property Act, Bank sold the property to me.

When I asked the Bank to repay the above amounts, it is saying that the auction is done on "as is where is and what is" basis.

I request you Sir, please help me in this regard. Whether I can seek legal recourse under any Act or rule? If any sort of remedy is there, please give me the details along with previous judgement references, if any to sharat_kuch@yahoo.com

 

 
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advocate/legal consultant

buyer has to be aware.as such the bank had permitted you to see the property ,inspite of the same you have neglected to see the property.if at all you have visited the place you would have known from theassociation and other dues.


you will not get anything if you go for a litigation its waste of your time and money  

 
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verify from the advertisement issued by the Bank, if the bank has advertised the sale as "as is where is basis" then you may not succeed against the Bank

 
 
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n/a

You can get relief. As per the decisions of Supreme Court S 33(6) of SARFAESI Act is to be interpreted as it is the duty of the Bank to clear the charges before the property is handed over to you. You have two ways to approach the court- either you can approach the Consumer Court or you can file a writ petition against the bank. However before proceeding into any litigation, it is suggested that you also do a cost benefit analysis, since the second method is a bit costly.

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n/a

Hi,

Please read it as s 13(6).

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RTI & CONSUMER ACTIVIST

I think DEBT RECOVERY TRIBUNAL of the State has jurisdiction to hear appeals/applications against all actions of authorised officer of the bank under securitisation act [SARFESI ACT]

 
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n/a

i would like to know if there is any way by which possession of residential property lying with bank as security can be prevented. the intention of the borrower to liquidate the property to settle the dues is known to the bank however more time is not being provided. till date no notice or demand has been made by the bank in writing.


 


 

 
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Mr. Sharat,

Without making inspection, you have participated in the tender / bid. You ought to have insisted for inspection of the secured asset before participating in the tender. Having participated in the tenders without inspection, you are not in order now to point out such lapses if any now. You have after purchasing the secured asset incurred Rs.50,000/-. That means that you have accepted the house without any demur. You have also taken possession of the house as is clear from the expenditure of repair incurred by you towards repair. Arrears of municipal taxes, maintenance charges up to date were paid by you to the Association. You have paid electricity charges to avoid disconnection. All these payments were not made to the bank. This is not ordinary sale. It is forced sale under the Act. In case of ordinary sale you would have paid higher amount than what you paid / incurred in the instant case. In my opinion you do not have strong case. Even otherwise your right to approach DRT is time barred now. Do not waste your money for litigation which also would consume your valuable time. 


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Sir

Thanks for the reply, but its too late. However, I made a claim in Consumer Forum and I was awarded taxes paid to the government authorities and Forum observed that the Bank should have notified the dues to be payable to the authorities.

Thank you very much

 
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Sir Thanks for the reply, I made a claim in Consumer Forum and I was awarded taxes paid to the government authorities and Forum observed that the Bank should have notified the dues to be payable to the authorities.
 
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