Hello,

HC can only pass an order against thr DRT if the order of the DRT is challenged by him. Since he does not have a locus therefore he can not challenge the order of DRT. I would advise you to approach the HC and produce the stay order of DRT, the person holding the share certificate will have no case.

regards

You have a valid ground in your case the bank was at fault in not following the technicality the notice you must have received is of admission of petition in which you are made party. The sale/ auction is illegal by DRT on statutory grounds as the law is not followed so kudos you just appear in HC and should file your reply with all grounds and judgement of DRT.

See in DRT the person is not party so he is basically claiming his right which has been effected by DRT order. Also your right over property is exclusive and prior as it has not been disturbed legally the bank has illegal sold your property without following statute so the court will never disturb your right.

I am posting a link here facts are different law point is same as your case will clear your doubt.http://www.livelaw.in/allahabad-hc-quashes-drat-order-cancels-auction-sale-sarfaesi-act-debtor-not-informed-read-judgment/

1) HC would be reluctant to intervene as bank and purchaser has alternative remedy

2) HC would direct bank/ purchaser to file appeal before DRAT

sale has been done by bank without following due process of law

notice ought to have been issued to you before auction of proeprty

you have good chance of success

1. Well,the order of DRAT is amenable to challenge beofre the High Court but since there is a provision for appeal beofre the DRAT against the order of DRT the high court should not intervene on the principle of alternative efficacious remedy.

2. Now when the high court has stayed the order of DRT appeal in the high court and contest the case primarily on the alternative remedy ground and if that does not work then on the issue of merit.

3.Since there is great discrepancy between outstanding loan and the value of the proeprty the sale certificate should be quashed/set aside in all probability.

4. The high court in all likelihood the remand the case to DRAT as there is clause for preferring an appeal agaisnt the order of quashing of sale certificate by DRT.

If the sale taken place after the stay granted by the DR, you still have a good case in your hand.

Having said that we may have to look into the case filed before the Honourable High Court and what order has been challenged and what is the prayer as well.

You have high probabilities that the case will be decided in your favor.

He not being a party in DRt does not have any locus to challenge the said order.

Engage a good local lawyer, and fight the case in the High Court.

Regards

High Courts cannot entertain any writ petition challenging the order of the Debts Recovery Tribunal unless any exceptional circumstances arise.

Thus, the person who has approached the High Court against DRT stay order passed in your favour will have to demonstrate that his case falls under the exceptional categories, so that the same may be taken up for adjudication by the High Court.

Appear in the High Court through a counsel and raise a preliminary objection on the maintainability of his writ petition.

Dear Client,

Above sale is abuse of process, as bank just to recover its loan, sold the property at very lower rate, this is enough ground to quash all the proceeding against u. Your willingness to clear the loan amount, positive inference will drawn in court.

Also, above order cannot be assailed directly in High Court, when statutory remedy is available at lower lever, DRAT.

SC: Article 226 can’t be Invoked if Alternate Statutory Remedies are Available

Authorized Officer, State Bank of Travancore and Another v. Mathew K.C.

When a statutory forum is created by law for redressal of grievances, a writ petition should not be entertained ignoring the statutory dispensation

Provide documents for precise advise.

1. What is written in the plaint of the case filed by the purchaser?

2. There are several such cases filed before Calcutta high court wherein the Auction Purchaser claims back the money paid by him to the Bank for buying the property with interest.

3. You have an excellent case now. There is a Judgement passed by Calcutta High Court where the bank has received the payment towards selling the mortgaged property with out taking its physical possession and also has closed the loan account by issuing no due certificate.The Court opined that the loan has already been closed and No Due certificate has already been issued by the bank for which it does not have any further right to apply for DM's permission u/s14 of SARFAESI Act which can be applied by a secured creditor and the banks no more stands as a secured creditor after closing the loan account and issuing No Due certificate.

4. If the same thing has happened with you, file an application before the DM drawing his attention to the fact that the bank is no longer a secured creditor in connection with the said loan for which is not authorised to apply u/s14 of SARFAESI Act and is it so applies, it should be rejected on the above ground.

5. However, High Court has ample power to pass order against any order including DRT stay order but it does not interfere in to DRT matter and certainly not in connection with stay orders.

1. Without taking physical possession of the mortgaged property, the Bank can not sell the said property as per several Judgments passed by Calcutta High court and other High Courts.

2. Moreover, the buyer can not sue you for the said stay order. He can claim his money back making you additional respondent.

3. You have a very good opportunity to force the bank to come to the settlement at your terms for the reasons already explained in my earlier post.

4. Play your cards and take your steps very carefully.

Since you received notice from High court as a respondent, you may have to appear before high court in the writ petition filed by the buyer.

You can produce the decree and judgment passed by the DRT in your favor before the high court in your counter objecting to the writ petition seeking relief, filed by the purchaser.

You can discuss with your advocate on all such further issues to tackle the writ matter effectively

Sir I assume he is challenging the DRT stay order. Because I visited the bank even in December for OTS and they refused saying the person to who they have issued the Sale Certificate to is ready to fight this even in the Supreme Court. My property is worth 1.5 Cr and my loan outstanding according to the statement shows 39 lacs and according to the bank they have sold it for 76 lacs which the DRT clearly squashed. Now I want to know my chances of fighting this.

You have a very good case to defend.

The decision by DRT in your favor is a good decision.

Dont approach the bank once again by oral means, you may write to the bank either by yourself or through your lawyer for negotiations.

The decision by the DRT is binding on the bank hence you can file a suit to cancel the sale of property by auction by the bank to the purchaser and follow the process of recovery of loan which you are ready to repay immediately on hearing from them or willing to deposit the same in the court if they dont accept the offer.

But you may not gain grounds for any OTS if you plan to approach the case through court.

In the previous answer I have given you a link of judgement where there where similar question of law involved there hon'ble court has order bank to return the purchasers money with interest and secure loans of the debtor.

in HC you have to submit english translation of documents

2) submission of marathi documents would not suffice

3)if you are able to clear the bank dues sale of property would be set aside .

4) take the plea that property is worth 1.50 cr but sold for 76 lakhs by bank

If stay has been granted to you then the court can not force you to sell the property

You have to take back possession after discharging the loan but it will Depend on bank's discretion or you have to seek an order from court to that effect.

Until no stay from the higher court, ur title and possession in the property is secured and absolute and any interference by the bank and buyer amounts to contempt of court order.

Dear Sir,

There are 85% chances of winning. Just engage a competent advocate and you will definitely succeed.

1. The High Court will not issue any order to you for selling your property against the said W.P. filed by the buyer.

2. The buyer can file the said W.P. basically against the bank seeking refund of the amount paid by him for which he might have also added you as the party since he has no Jural relationship with you.

3. Collect the copy of the plaint of the W.P. to understand as to what is the prayer of the said petitioner and how has he made you involved you in the said matter.

You will get your changes to put your case.