Auction of npa asset

Have you filed your objection to the Stay Order? Please approach the Bank to find out present position. There must have been progress in all these 9 years.

1. You have paid only 25% of the bidding amount. and have not yet paid the full amount to enable the bank to issue  the sale certificate.

 

2. So you can not call yourself as the purchaser of the property.

 

3. Find out from the Bank whether they have forfeited the said 25% of the bid amount or not for your not paying the balance amount.

 

4. If not then claim back the said 25& from the Bank.

He is a successful bidder. Meanwhile there is a stay from DRT and so sake couldn't be completed. It's for the bank to inform the successful bidder the position. Under the circumstances, bank cannot forfeit the 25% paid by the successful Bidder. 

 

Quiriest, contact the Bank forthwith and find out the present position and then act depending upon present status.

Title of the auctioned property is still not transferred in your name.

There is a stay order on the transfer of title.

It is better to consult a local prudent lawyer with relevant documents. 

1. Rule 9 (5) of Security Interest (Enforcement) Rules, 2002 states " In default of payment within the period mentioned in sub-rule 4, the deposit shall be forfeited and then property shall be resold and the defaulting purchaser shall forfeit all claims to the property or any part of the sum for which it may be subsequently sold..

 

2. As per the said sub rule 4 "The balance amount of purchase price payable shall be paid by the purchaser  to the  Authorised Officer on or before the 15th day of confirmation of sale of the immovable property or such extended period [ as may be agreed upon in writing between the purchaser and the secured creditor, in any case not extending three months].

 

3. If the said stay order restraining the sale of the property has not been obtained with in 15 days of confirmation of sale or with in the extended period (if any) not exceeding three months, then the Bank gets the right to forfeit the advance amount paid by you now.

 

4. In by any chance the SARFAESI action initiated by the Bank is set aside by the DRT including the sale of the property, you can claim your money back.

 

5. If the DRT rejects the S.A. filed by the Borrower/Guarantor/Mortgagor, then the Bank will forfeit your advance amount if you have not paid the balance amount with in the stipulated period (in case the stay was not obtained within that period).

I am sure Bank shall not just like that forfeit the Deposit made by the successful bidder without as much as informing the Bidder. By doing so Bank shall be back to square one and shall be compelled to start the bidding process afresh. No Bank takes such a decision just because it is available in the law. Further, it is not known whether the Stay Order is still applicable or it is vacated.  That is why the Queriest is advised to approach the bank and find out the present position  and take suitable action accordingly with the assistance of a knowledgeable and reliable Lawyer.

You should file an S.A. (Under Section 17 of SARFAESI Act) in DRT in whose jurisdiction such case falls into and the delay of 9 years is too long so consult a good lawyer who is practicing in DRT, also along with an SA file I.A for relief soughted, stay or for an order for Bank to pay back such advance given with interest as ethically and legally a land should be auctioned free from any encumbrances/dispute.
This may help you understand the procedure but you should consult an Advocate as there may be limitation issues too.