Please Guide on an issue.
While Sale of a Immovable propery (House) through E-Auction, is it mandatory to give 30 Days Notice in writing to the borrower about the Auction sale of immomovable property, reserve price etc under Rule 8 of SARFAESI Act or the Newspaper Publication is sufficient. ? The Bank Knew the new address of correspondence of the borrower and had made few corresondences as well, but didn't served/sent the Sale notice to the borrower.
The case is that the borrower requested for One Time Settlement just 15 Days before and the Bank dirceted to give full and FInal Payment of entire Rs 47 Lakhs in Just 15 Days. The borrower was not able to and therefore Auction for completed.
while seacrching on google I am getting two versions of the same. Seems there was ammendment in October-2018. Experts please guide. Here is the same.
The Previous Version/Original Version
Section 8(6) in The Security Interest (Enforcement) Rules, 2002
(6) The authorised officer shall serve to the borrower a notice of thirty days for sale of the immovable secured assets, under sub-rule (5): Provided that if the sale of such secured asset is being effected by either inviting tenders from the public or by holding public auction, the secured creditor shall cause a public notice in two leading newspapers one in vernacular language having sufficient circulation in the locality by setting out the terms of sale, which shall include,—
The descripttion of the immovable property to be sold, including the details of the encumbrances known to the secured creditor;
the secured debt for recovery of which the property is to be sold;
reserve price, below which the property may not be sold;
time and place of public auction or the time after which sale by any other mode shall be completed;
depositing earnest money as may be stipulated by the secured creditor;
any other thing which the authorised officer considers it material for a purchaser to know in order to judge the nature and value of the property.
After Ammendement in October-2018
In the said rules, in rule 8 –
(i) in sub-rule (6), for the proviso, the following proviso shall be substituted, namely:-
“ Provided that if the sale of such secured asset is being effected by either inviting tenders from the public or by holding public auction, the secured creditor shall cause a public notice in the Form given in Appendix IV-A to be published in two leading newspapers including one in vernacular language having wide circulation in the locality.”;