Legal Question in Banking Law in India

Dear sir,

I have an unfortunate situation before me and have to write to you for your help.

I am an auction purchaser under SARFAESI ACT,the auction was held in 05/03/2010 in Jabalpur by authorised officer(sarfaesi) d bank, in which i was the succesful bidder, despite my fulfilling all conditions of sale the bank cancelled the auction sale against its own clauses as mentioned in the approval letter according to which the bank could not cancel the sale after i have deposited the full sale consideraration.

i deposited the full amount on 12/03/2010 well before time limit of 15 days ie 20/03/2010 but the D bank cancelled the sale on 27/03/2010 15 days after all the conditions of sale were fulfilled.I fulfilled all the conditions of sale as per the contract well within time limit prescribed by bank but the bank has arbitrarily cancelled the sale against its well articulated written terms of contract and long after the time period provided to me.The bank is unattentive and uncooperative. I could arrange the finances with great difficulty and now I am helpless.

kindly suggest what is my legal position and what should i do?

I shall be obliged.


Asked on 5/27/10, 12:44 am

1 Answer from Attorneys
J. Radhakrishnan independent Practice

File an application under Sec.17 of the Sarfaesi Act before the DRT, with a delay excuse petition, as the application ought to have been filed within 45 days of the cancellation of the auction. You can seek appropriate remedy from DRT, within whose jurisdiction, the sale has taken place. Take the assistance of local lawyer. The Bank cannot cancel the auction once it has received the full amount at which u have bid at the auction.

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Answered on 6/02/10, 2:27 am


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