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shankar shyam (business)     05 September 2009

30 days auction notice, sarfaesi act

 6th July 2009 the auction notice was published in the newspaper  under sarfaesi act. 5th August  2009, 12noon was the last date to accept the tender documents. auction was on the same day 5th august 2009  @ 3pm.  can the experts in this forum let me know whether these dates cover 30 days notice period as per the sarfaesi act 2002 . if not can I claim the same to set aside the sale in DRT? will the Presiding officer be convinced on this point. I am a third party owner of the property which was auctioned. presently the property is bought by another person in the auction. the actual borrower is already having a application in drt.

please give your feedback.



 1 Replies

G.H. SUBBU (Advocate)     29 October 2009

Dear Shyam,

As per the SARFAESI ACt 2002, the 30 days time was given from the date of publication of Sale Notice and the Date of Auction Sale.  The paper publication was made on 6.07.2009 and the Sale was conducted on 5.8.2009.  So the 30 full and complete days ended on 4th Aug. 2009. So there is no procedural lapse on the part of the Secured Creditors. You cannot step into DRT based on this ground of procedural lapse.  If there is any lapse in the procedure to be followed, you can resort to go to DRT for stay the proceedings.

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