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gaurav (student)     01 April 2010

SARFAESI SALE...BANK CHEATING,NOT GIVING SALE CERTIFICATE

 

Hello sir,
please advise me. on 5 march 2010 i bought a house on auction (it was second auction call for the said property in a year)from authorized officer under SARFAESI ACT being the lone highest bidder and my price being over reserve price . My bid was accepted & i was given a letter asking me to deposit 25% of sale price on the same day & remaining 75% in next 15days i.e. by 20/3/2010.The letter had conditions of sale one of which  stating “ bank reserves the right to cancel the sale without assigning any reason what so ever, before the purchaser has deposited the balance 75% of sale price” i deposited the remaining amount on 12/3/2010  about 8 days before bank’s time limit & gave application to the bank for releasing sale certificate as per SARFAESI ACT but bank didn’t give sale certificate when i gave them another application for the same on 29/3/2010  no sale certificate was given instead on 31 march i received a cancellation letter dated 27 march with a pay order for full money deposited by me dated 25 march the bank has cancelled the auction even after my fulfilling all the conditions of sale within the time limit. The cancellation letter has come 18 days after full money deposition and 10 days after the time limit given to me. the cancellation letter says ““the above bid was subject to the condition of right of cancelling /rejecting the bid/offer at any stage the bank has decided/the authority has decided not to sell the property”” the bank has arbitrarily cancelled the sale against its own condition/clause of sale as stated in the letter given on the day of auction after my bid was accepted what should i do to get the sale certificate n the possession of property. Please advice..... Also can I approach DRT and file writ petition simultaneously? Please advice. Thanks so much for your attention n time....



 6 Replies

Uday (Lawyer)     01 April 2010

Dear Gaurav,

If the acution has been cancelled since the borrower has paid the money and redeemed his property, you have no right in claiming that you are the successful bidder. The borrower has the right to redeem his property any time before the sale certificate is issued.

On the contrary, if the bank has cancelled the auction arbitrarily, then, you have a good case to challenge it by way of Writ

1 Like

bhagwat patil (Property due diligence 9422773303)     08 April 2010

you will get 5% more on your amount.

1 Like

Rasik Dagli (Lawyer)     16 April 2010

Once you have deposited the amount within time bank has no right to cancell the sale.The condition for cancellation clearly states that "before the purchaser has deposited balance amount of 75%'

You have not stated anything about the reason given by bank for cancellation.  It is also not clear whether possession was given to you.

In any case you can file a suit against the bank with two alternative prayers. t, First restraining the bank from selling the flat to any other party and Secondly for damages for the loss suffered by you for wronful cancellation.

RASIK DAGLI

Advocate.

1 Like

Uday (Lawyer)     22 April 2010

Mr.Patil,

If you could substantiate your views with relevant provision of law or case law I shall be thankful to you,

ravi kiran (incharge projects)     30 April 2014

Dear Gaurav,

Recently I have also particpated in e-auction of plot of which I was highest bidder, similary like you I have paid full amount with in 15 days. Now banker is telling verbal that he cannot give sale certificate has the borrower has approached the court and taken a time extenstion till 31 may 2014. He is advising me to wait till then.

I paid full amount by collecting hand loan from friends and if these kind of extenstion if borrower keeps getting then all money will stuck with no interest on it.

Please advise what I have to do now.

Rangee (Lawyer)     27 June 2014

Dear Friend,

You have to find solution in the detailed conditions of sale. if any one conditions stipulates that the bank has the power to cancel the sale even after confirmation before handing over possesion, you will not get the property however you may some compensation for the amount deposited by you.Go through the detail condition and find some relief. 

Yours

Rsksingh


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