Sarfaesi act - high court or drat?

Thanks Raju for the information.  I would be able to comply with the DRAT order, but by the deadline allotted by the appellate authority.  My concern is the lack of any explicit order for stay on the Authorized Officer from proceeding further.  I have reasons to doubt the fairness of the Authorized Officer from my dealings with him. 

Dear Shastibrata,

                    The present scenario with regard to DRTand DRAT are that they most often appear to side with the banks (considering themselves as agents for collection). If there is a real and urgent need to avoid any kind of gross injustice it is better to approach the High Court. The HC will pass suitable orders to DRT to dispose of the matter.

J.T.Rajasuriya

Thanks J.T.Rajasuriya.  It has been my observation that thus far that the whole SARFAESI process has been set up unfairly in favour of financial institutions and against borrowers especially middle class borrowers who are mostly ignorant of this draconian act. 

Thanks to everyone for their help.  I have learnt a lot and continue to learn so much from your posts.

completely agree with experts

sir, i have taken housing loan  of 900000 ,4 years back but unfortunately i could not paid the installment prescribed by bank regularly. and my loan became NPA. i have recieved notice of 13(2), 13(4), possession notice. After that i paid 50000 and went for negotiation for restructuring but the bank personnels were continuously repeating that the house which is mortgaged will be auctioned within 30 days. after that i have made appeal to DRT f to for stay order, but there is no progress is going on.

if some how i could not able to manage the prescribed amount to the bank then within how many days the auction procedure will start. and if i want to compromise  and for restructuring the loan, what steps will i have to follow..

please give detail solution for this trap

thanks in advace.

Payment of Rs.50,000/- does not solve the problem. The bank cannot sell the flat without serving you 30 days sale notice. You have to pay the defaulted arrears of the installments together with interest and penalties (if any) levied by the bank if you want to get the account upgraded to Performing Asset fro the status of Non Performing Asset. You may contact the Zonal manager (do not contact branch level as they do not take any such decision) for accepting such proposal. Once this proposal of yours is accepted, your loan account will be upgraded to PA and you have to pay regularly the installments without default until closure of the loan account. This is matter of discretion to bank to accept your proposal. 99% of banks accept such payment. Otherwise you have to depend upon DRT's stay order which will be for a shorter time. Do not enter into litigation which would consume your valuable time and money beside putting you to restlessness. DRT's stay order is not a permanent future. If the bank agrees for such proposal suggested above, you have to withdraw the DRT case.

thanks Ramachary sir...

sir if i ll not able to pay the loan then with in how many days auction procedure ll start..

Auction will be held after expiry of 30 days of service and publication of of sale notice.

sir, i have seen a news paper advertisement regarding my loan outstanding dues on 17-sept ..what does this signify...?

will this be considered as public sale notice..? if yes then plz provide me some suggestion to stop the auction procedure..?

thanks a lottt sir

Has DRT or SARFAESI Acts helped the banks to lower the NPAs. I find they have not. In fact they have increased the costs of the banks without any substantial relief. In fact our existing laws were sufficient to release the moneys by the banks, if they had been properly and diligently applied. The problem, I find, is that the banks lack in following the matters and engage competent lawyers. may be due to their fee structure. What is really needed is to look at the fee structure and engage proper lawyers.