I have learnt a lot from perusing these forums from the past few years.
I have reason to believe that my bank had acted in an arbitrary manner with respect to my loan account. The various such arbitrary and downright unethical actions, and its consequences I would detail on a separate post. Here is one situation that I would be grateful for any input from the learned forum members:
1. The Bank went ahead and auctioned my property without notice under 8(6). There was a successful bidder who deposited the required 25% with a written undertaking to the bank that he is fully cognizant of the fact that the sale confirmation is subject to the result of my SA pending before the DRT.
2. I had appealed the decision of the DRT (They passed an order requiring me to pay off the entire outstanding amount before setting aside the sale). I have moved the DRAT where the case was pending for a few months. The bidder had filed an implead petition before the DRAT which is yet to be acted upon.
3. In the meantime, for unknown reasons, the Bank went ahead and returned the 25% money of the successful bidder, and the bidder exited the Sarfaesi process.
4. The bank has claimed that since the bidder has left, the application before the DRAT was infructuous, and the case has been reverted to the DRT for disposal on merits.
My doubts on the above:
1. Can the Bank act in such an arbitrary manner without direction from the DRAT/DRT and return the money to the bidder? Especially during a period when there was a stay in effect from the the DRAT?
2. Is it legit if I were to file an IA with the DRT to require the bank to recall the money from the former successful bidder?
3. I was reading about a Madras High Court judgement ""The Authorised Officer vs M/S. Tetrahedron Ltd on 20 December, 2012" Wherein the Hon'ble judge had found that forfeited amount needed to be adjusted against the outstanding dues from the borrower. Relating it to my situation, is the amount given away to the bidder by the Bank forfeited money? If so, is this something that can be adjusted against my outstanding loan?
Thank you very much in advance for your valued inputs.