Sarfaesi - bank auction property


I have participated in Bank e-Auction property that was conducted by SBI. I am successful bidder and payed 25% of the bid amount on the same day.

1)      From bank authorized officer came to know that borrower gone to court assuming DRT and Bank officer asking me to pay rest of 75% amount by agreed date other wise 25% which have paid will be forfeited. Bank officer saying you can pay full amount and bank will take care of rest of things i.e. Registration on my name etc. What should I do now? Can I go and pay full amount?

Please suggest how to proceed further.








if bank has taken the possession of the property through court order, then you need not worry. you may ask the bank to give you an indemnity bond for your safe guard. Also, if the transaction is closed and you take the actual possession of the property, then there is little the court will do.

Further till date no court/DRT has put any stay on the auction. so there is no wrong in the transaction done with the bank.



Advocate Rohit Dalmia



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Dear Rajashekar,

  I am agree with Advocate Rohit, you need not bother if bank has taken the possession of the property through court order.

for more query contact us


Hi Rohit and NRI Legal Consulting,

Thanks for your quick reply.

My concern here is as Borrower went to DRT and still Bank can register the property on my name?

Bank already took physical possession of the property.



Advocate Supreme Court of India

Dear Friend

You need to know if the original owner/borrower has challenged the auction. Secondly, you need to know if the Court has granted any stay in his favour. If there is no stay of the auction then you can pay the balance amount to the bank. If there is stay then join yourself as the party to the pending proceedings and get the order from the Court.




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Hi Viraj,

Thanks for information. Original owner/borrower has challenged the auction in court.

I will check if the Court has granted any stay in his favour.

Thanks for your valuable time.





Mr.Sekar as far as the bank auction properties are concerned the judgement debtors usually start litigation to prevent the auction purchaser from buying the their property at cheap  price. Because it is always the practice of the banks to sell the JD's property at a low price . We cant find fault with the approach of the bank as borrower does not co operate with the bank when it comes to repayment of loan.  Even one of my friends had to face this problem when he bought the property in auction. He had to pay 2 lakhs to Judgement debtor to withdraw the plaint which ensured the purchaser to purchase the property without any hassles. There  the vale of the the property was 17 lakhs. I would suggest you to calculate accordingly  and settle with the judgement debtor to complete the transaction smoothly without any trouble. Or otherwise he would rake up some issue or other to drag the proceedings and make your life difficult.


Hello, I am facing similer issue, I paid full payment as the authorities said that the dastavej can be processed then, and after paying full the next day SBI authorities said there is a stay on property.

Now they are just delaying it. I just want to know the way out

Thanks in anticipation

solve problems in criminal cases.

Yes the SARFAESI procedure is comlicated, claim refdund and damages from bank.


Hello Laxminarayan Ji,

The bank authorities are straight away saying not to refund money. It is one month of full payment, They are not saying what is the status of property, is the title clear or not. I know that it is sold under as where is what is terms, but before taking it we should atleast know the clear picture of the property. The bank is not showing that. SBI authority is telling us to talk to Law officer of bank. He says leave everything on us, aap ka ho jayega kaam. The case is in Patna High Court, We dont know when it will be solved or what will happen. 

I just want refund now, and want to get out of this complicated matter. Can you please suggest me what should i do?




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