Sarfaesi act

This query is : Resolved 

Querist : Anonymous (Querist)
30 November 2019

I am a successful bidder for a property in Chennai. Paid the full sale value amount. One day before auction day, borrower approached DRT for stay and DRT said "Sale will proceed as per sale notice. Confirmation stayed. Counter by (date)".
The Bank instead of filing counter, informed DRT that they are withdrawing the Sale Notice, and the DRT agreed to it.
In the sale notice issued by the bank there is no clause on the right of the bank to postpone/cancel/withdraw the e-auction. The bank returned the full amount paid by me.
As a successful purchaser do I have third party right on the property? Can I take legal action via DRAT? Please advise.
Thanks in advance for your advise.

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sankar narayanan (Expert)
01 December 2019

What reason the banker pointed about the return of bidding amount to you. we need more details related your query will able to give more suggestion. if the banker breach any of law then you have full rights to sue against them.

Querist : Anonymous (Querist)
01 December 2019

Sir, Thanks for your response. The DRT PO passed the following order "Counsel for both sides present. Respondent bank filed a memo stating that the respondent bank decided to withdraw the sale notices dated .... Hence S.A. is allowed. IA is disposed off''. The bank on the same day refunded by RTGS the full amount paid by me.
In the sale notice there were 12 properties to be auctioned on the same day , of this 2 properties belong to the same party of which one property I have bid. Later on questioning the bank, they said that for the other property of the same party there were some mistakes in the schedule boundaries mentioned in the sale notice, so they decided to withdraw the sale notice. Later on checking with the bank, came to know that except the property bid by me there were no bids for all the other properties mentioned in the sale notice. The bank did not inform the DRT about it. Hope I have clarified your query. Please advise. Thanks

Dr J C Vashista (Expert)
02 December 2019

Seek advise/ guidance of a local prudent lawyer with relevant case file for better appreciation of facts.

P. Venu (Expert)
02 December 2019

Admittedly, you have not been a party before the DRT. If it could be established that you have sustained any loss, there is a cause of action for claiming damages. In my understanding, the proper forum would be the ordinary civil court.

sankar narayanan (Expert)
03 December 2019

I do agree with Mr.Venu

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