Hi, 

In case of no stay by DRT, the bank may initiate the auction.

1) If the compromise amount has been rejected by bank than next step of bank will be to go for auction and now bank will take permission from DRT.

There is no stay order passed by DRT 

bank can auction property 

1. Yes, unless there is an order of injunction sought for u/s 17 of the SARFAESI Act, there is no legal impediment for the bank to proceed with the auction sale.

2 So do seek such injunction which is granted ij usual course if of course if you deposit a part of the money lying in arrears.

3. talk to your advocate on this or cnsut with an advocate who is seasoned on this matter.

See if there is no stay on auction the bank can proceed with auction by giving notice to the borrower. The borrower can pray before DRT for stay.

The auction and handing over of possession by the bankers to the bidder has taken place when there was no stay. 

Dear Client,

Bank is free to proceed, if no stay order from DRT. If bank itself agreed or offered OTS, than on this point bank can be hold to auction.

in absence of any stay order against the auction, the bank is within its right to conduct the auction 

- In the absence of any stay order against the auction, the bank has right to proceed with auction.

- Since, the matter is already pending before DRT, then you should file an Interim Applicaton for stay of the auction proceeding with the applicatoin for Urgent hearing . 

1. As per the information mentioned in thenpresnet query, makes it clear that the case is pending while auction has been announced or about to announced and compromise oalbbhas been rejected at present.
2. Let me tell you that it is right and under the purview of the DRT to call for the auction during the pendency of the case.
3. And that is also for a reason that once the auction is over then the remaining should be handed over to the borrower and close the case.
4. Though compromise plan has been rejected once, but still I would suggest you to file an application with another amended complromise plan if possible and also with a prayer to stay the auction till the issue has not been resolved with respect to the new compromise plan.

Yes if stay is not given. You get the stay for the same on merits

In the absence of any restrictions from a court of law about this, the bank can proceed with its proposal to bring the property under auction sale.

Dear Sir,

According to SARFAESI Act, Bank is bound to secure maximum sale amount of secured assets. There is some mandatory provisions in the SARFAESI Act regarding sale of secured assets like valuation of property from an approved valuer and in consultation with the secured creditor, fixing reserved price of the assets, notice to the borrower, appearance of borrower at the public auction, organize public auction after giving due publication in at least 2 leading newspapers and one of them should be in vernacular language.

If bank fails to comply these mandatory provisions the aggrieved person can file an appeal, under section 17 SARFAESI Act, before the Debt Recovery Tribunal. Aggrieved person can seek remedy like cancellation of certificate of sale issued under section 6 SARFAESI Act, set aside the public auction or revaluation of secured assets etc.

The section 34 SARFAESI Act, puts a Bar on Civil Courts in entertaining suits in respect of the matter in which the Bank has initiated a proceeding under SARFAESI Act, 2002. In view of many judgments of constitutional courts from time to time under Article 32, 136  and 227 of Constitution of India, it is settled that the Civil Court has no jurisdiction to entertain any proceeding or suit in a matter in which the Bank has initiated proceedings under SARFAESI Act, 2002.