Seek return of your earnest money deposit as bank is not proceeding with auction as OTS settlement has been arrived at with bank
2) if bank refuses proceed legally against bank
Refund of EMD
Hello sir/madam I run a coaching classes at kandivil west (pooja enclave building) mumbai. A commercial property next to my premises was on auction by a government bank, this information was provided by the bank executives who had come to the premises. They had asked me to visit the bank for the further auction details. As per the conversation with the bank executive I participated in the bank auction and had paid the earnest money deposit of rupees 6.67 lakhs. As the balance amount had to be paid within 15 days I had arranged for the loan from ICICI bank. ICICI Bank was ready to grant me the loan of required amount but after stamp duty and registration only but the auction property bank did not agree and wanted me to pay the amount first and then only they would do the stamp duty and registration and in this the 15 days time period got over. The auction property bank officers asked me to give an application for extension of time and asked me to apply for loan in their own bank. I had applied for the loan in different branches of that same bank but most of them declined to grant me the required amount of loan. One of the branches agreed to grant me a loan of Rs. 32 to 33 lakhs only which was insufficient for me to proceed further. So finally I thought of taking help from an investor who was ready to buy that property. I made the investor meet the bank executives and the bank officials said that pls apply extension of time till 30th November 2017.we went to the bank with cheque on 2december .They asked us to come again after 14 days as they have to inform the previous owner of that property. When we went to meet again after 14 days the bank officials said that the case has gone under ots (one time settlement) with the previous owner. Now I don't know what to do my EMD money is stuck kindly help me to get my emd money back. Should i go to banking ombudsman? Should i take legal help? Plss help
Asked 8 years ago in Property Law
Religion: Hindu
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8 Answers
The following judgment covers your problem. There are so many similar judgments on the point. You are entitled for refund of EMD with interest. Be assured....
Madras High Court
R.Shanmugachandran (Deceased) vs The Chief Manager on 12 September, 2012.
V.RAMASUBRAMANIAN,J.
A person, who participated in an auction conducted by the respondent-Bank under the SARFAESI Act, came up with the above writ petition seeking refund of the earnest money deposited by him.
32. In this case, the Bank has also failed to produce a copy of the terms and conditions of sale attached to the application. The public notice issued on 28.6.2010 fixing the date of auction as 2.8.2010, does not contain an indication about the forfeiture. We do not know whether there was a clause for forfeiture of the earnest money deposit in the terms and conditions of tender attached to the application forms. Therefore, in view of the failure of the Bank to produce a copy of the tender conditions and also their failure to follow the second part of Rule 9(3), we have no alternative except to grant relief to the writ petitioner, despite our finding that the Bank cannot be accused of non-disclosure of encumbrances and despite our interpretation to Rule 8(6).
33. In view of the above, the writ petition is allowed and a direction is issued to the respondent-Bank to refund the amount of Rs.3,57,000/- to the petitioners, within a period of 4 weeks from the date of receipt of a copy of this order.
Thanks a lott sir for your timely response, how should i proceed further for getting back my EMD
Asked 8 years ago
Issue legal notice to Bank for refund of your money with interest
Write a letter to the Bank to refund your EMD forthwith.
In case they fail to do the needful despite your letter, send them a legal notice for refund of your EMD.
Approach the High Court and file a writ of mandamus against the Bank in case your legal notice is not complied by the Bank.
1. issue a notice to the Bank for refund, wait for 15 days then file a writ petition before Hon'ble Court.or a civil suit before a civil court.
1. Serve a lawyer's notice to the bank to refund the EMD with interest as the bank has not proceeded with auction.
2. If bank does not accede to your demand, you may file a writ petition against the bank in the High Court to seek binding directions to it to refund the amount.
If the bank is not refunding the EMD or accepting yo offer then you can take legal action against the bank for refund as well as for compensation for the tortures they gave.
he bank canot refuse to refund the EMD for any reason if they are not willing to offer the property on auction sale.
Thanks a lott sir for your timely response, how should i proceed further for getting back my EMD
First exhaust the remedies within the bank authorities on this and after that you can initiate legal steps for recovery.