Enforcement of mortgage

G.Padmanabhan (Querist) 03 July 2014 This query is : Resolved

Dear Experts,

A Branch of PSU bank sold a mortgaged property in public auction after initiating recovery proceedings in a civil court. The borrower claims the property was sold for a price way less than its market value/intrinsic value. What are the legal remedies available to the borrower. Can the sale be impeached, now that the sale is complete, If so, what is the appropriate legal action?

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Parthasarathi Loganathan (Expert) 03 July 2014
If the sale process is accrued under the provisions of SARFAESI Act, borrower cannot restore the title since value of mortgaged property put up in public auction is determined based on the loan overdues repayable by you and not the market determined rate

Rajendra K Goyal (Expert) 03 July 2014
Hypothetical till you receive any notice for it.

Sri Vijayan.A (Expert) 03 July 2014
I agree with Exp.Sri.Parthasarathi.
Now, the borrower cannot challenge the sale.
The aim of the bank is to get back the advanced amount (Loan) along with the interest.

Once, the said amount is available, it can sell it to the highest bidder

Surrender K Singal (Expert) 04 July 2014
You ought to hqave been notified of the Auction sale and you could bid if the sale was being done at such lower price ?

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