Rddbfi act
P.Balasubramaniam
(Querist) 13 December 2013
This query is : Resolved
Whether the Decree Holder Bank can participate in auction conducted by the Recovery Officer of Debts Recovery Tribunal. Any citations available. Please help me
Guest
(Expert) 13 December 2013
It would have been better had you discussed the real problem rather than putting an academic type of query.
However, if the bank is desirous of acquiring the property, there is no bar for the decree holder bank to participate in the auction, as a competitive bidder for the property. The bank can place competitive bid by participating like other bidders.
R.K Nanda
(Expert) 13 December 2013
state real facts.
ajay sethi
(Expert) 13 December 2013
agree with dhingraji
P.Balasubramaniam
(Querist) 13 December 2013
One partnership firm had availed loan facilities from the bank and they have defaulted in repayment. The bank had filed an Original Application against the firm and its partners. Final Order was passed by the Presiding Officer of the DRT. based on the Final Order a recovery certificate was also issued. After completion of all the required formalities/procedures the Recovery Officer put the property (belonging to the firm) for auction sale for three times. No bidders till date. now the same bank is interested to buy the said property in the auction based on the provisions under Section 29 of RDDBI Act and Rule 59 of the Second Schedule of the Income Tax Act. The Recovery Officer has not accepted (no written orders was passed) the application filed by the bank. Hence i am in need of help from the experts with respect to the same.
Guest
(Expert) 13 December 2013
Your clarification is incomplete. What has not been accepted by the recovey officer, application of participation by the bank or the bid of the bank? The recovery officer cannot deny participation of bank, if that want to be a competitive bidder for purchase of the property. However, he would be fully competent not to accept a bid of the bank, if that is a single bidder and there is no competitive bid from any other person.
P.Balasubramaniam
(Querist) 13 December 2013
Sir, the recovery officer wants the clarification that whether the same bank can participate in the auction. There is no other bidders as on date.
Guest
(Expert) 13 December 2013
From whom the recovery officer wants clarification? If from the bank, why the bank, as a common bidder, should be made liable to clarify about its participation. The position of the bank as a lender and the bidder in the auction is quite different. The recovery officer should be competent enough to decide the matter of auction on the spot.
However, I have already made clear about non-acceptance of a single bid if there is no other bidder.
Guest
(Expert) 13 December 2013
You are welcome.
Rajendra K Goyal
(Expert) 13 December 2013
Well advised by the expert PS Dhingra ji.
R.K Nanda
(Expert) 13 December 2013
nothing to add more.
Guest
(Expert) 13 December 2013
Thanks for your appreciation, Rajendra ji.
T. Kalaiselvan, Advocate
(Expert) 15 December 2013
Mr. Dhingra's advise is conclusive, hope this makes the author clear of his doubts in this regard.
Raj Kumar Makkad
(Expert) 15 December 2013
The bank can definitely take part in auction proceeding subject to permission granted by concerned official incharge for auction.
