Drt surfaesi act related quarry

Priti (Querist) 01 September 2020 This query is : Resolved
Dear Experts
I baught an NPA property in an auction under SARFAESI ACT in 2017. Bank auctioned property on symbolic possession basis. I still have not get physical possession and case is in DRT. Now after 3 years, bank is feeling case can be dismissed against him due to non compliance of procedure. Bank published auction in two newspapers, sent sale notice, affixed symbolic possession notice on prominent part of property. but they did not serve 13 (4) notice by registered post. Now court has asked bank to show compliance. My question is.....what if bank is defeated. bank will go to DRAT or will do re-auction of property . My 2nd question is as a buyer how much interest i should be paid by bank if money is returned to me. is auction buyer have any rights or can take any action against bank for not providing physical possession.
thanks & regards

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Quick Summary

A buyer purchased an NPA property through a SARFAESI Act auction in 2017 but has not yet received physical possession, with the case currently at the DRT. The bank may face dismissal due to procedural non-compliance, specifically regarding the service of the 13(4) notice. If the bank loses the case, the buyer is seeking clarification on whether the bank will appeal to DRAT or re-auction the property, and what interest they can claim on their investment.

Dr J C Vashista (Expert) 02 September 2020
Consequent upon dismissal of suit of the plaintiff by DRT, moving of the plaintiff (Bank) to DART is their own decision which cannot be predicted or presumed.
However, there is no provision for re-auction of the mortgaged property.

SHIRISH PAWAR, 7738990900 (Expert) 02 September 2020
Hello,

In your case bank will not re-auction the property as property is already sold in auction to you. It is not possible to auction property twice during subsistence of first auction. In case if after all possible appeals finally bank lost in that case bank has to return your money. You may have to initiate legal action against the bank for return of money and interest on your paid amount.

Priti (Querist) 02 September 2020
Thank you experts for your valuable suggestions. But My question is how much interest should I claim if bank is returning my money. It would be of Fixed deposite rate interest or shd I claim 18% as it has been three years and a auction purchaser I got nothing.
2. If bank will return money in case of DRT judgement in favour of borrower, then property will be re-auctioned. Right or not?

Rajendra K Goyal (Expert) 02 September 2020
You can claim any interest, Bank may not prefer to pay any interest probably in the name of conditions of auction or any other clause.

In such condition, you have to approach appropriate court for orders.

Priti (Querist) 02 September 2020
Thank you for your advice

Rajendra K Goyal (Expert) 03 September 2020
You are welcome, may revert in case of any further question on the query.

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