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sunil (NA)     07 November 2019

Need advice on auction sale property

Dear All,

Recently we have attended for one auction sale and after becoming highest bidder, bank has issued sale letter and gave us the physical possession of the property. Subsequently Bank has helped to apply for trabsfer of ownership at Odisha State Housing Board (OSHB). During this procedure, in OSHB require one clarification from the bank that there is no Court Case / dispute pending against this property. Now we coem to know that there some case pending between the Bank and the borrowed (defaulter)... Now we are in between, Bank got their money, and we come to know that the loan borrower also received his portion. Reviewing the matter, now we are the sufferer after paying money..Is there any provision in SURFACI act 2002 that, bank can give us the physical possession when any court case is pending aganst the borrowers?


1. As bank has already given us the sale letter and physical possession of the house, can we start staying in the house? or we should shoft to the house after change of ownership only?



 3 Replies

SHIRISH PAWAR, 7738990900 (Advocate)     07 November 2019

Dear sunil,

Bank has already sold and issued physical possession to you so you can verywell shift in your house.


Hemant Agarwal ( Mumbai : 9820174108)     07 November 2019

1. Property purchased via Bank Auction and registration of Bank's Sale Certificate, under provision of Sarfasia Act, is legally final, conclusive and becomes irrevocable, after registration of Sale Certificate.

2. Once you have conducted the above, THEN nothing stops you legally from occupying the property, without any reference to anybody,including the Bank, Society, original borrower, whosoever ....  So occupy safely & securely.

Keep Smiling .... Hemant Agarwal

mariaolm   05 August 2020

This type of incident can become common when we buy a home by auction.

However, it is always a good way to buy a house at a price below what the market marks and incidents always end up being resolved between the client's lawyers and the lawyers of the bank or broker that mediates the operation.

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