1.  The original owner (defaulter) derives right to file appeal against the Auction Proceedings, provided he undertakes to pay off the defaulted amounts.  The risk to the successful Auction-Bidder remains perpetual, till Registration of Sale Certificate & Possession.

2. In above scenario, the Auction-Bidder, loses right on the property and becomes entitled to refund of the bidding /auction amount that he paid to the bank, for the Sale Certificate.

3. However, IF the Sale Certificate is immediately registered and actual possession of the auctioned property is duly taken over, THEN the cause of action for appeal will be between the original owner (defaulter) and the Bank and you would be absolved of all the civil liabilities etc....

Bank will give you noc and possession. Also take indemnity bond from them that if any claim arises in said property it will indemnify you. 

Once property sold, bank will raise it`s hand. So wait till limitation to set aside ex parte order get over. And also check third party non encumbrance, bank never disclose if any third party interest in property. even if you demand, bank may give you false declaration.

See the owner of proeprty can though challange it but in case If it is not challanged till now you can purchase same by verifying all documents and all check if there is physical possession or symbolic possession.purchase only if bank is handing over physical possession.

Dear sir 

Owner cannot claim any portion if entire property is put to public auction as per the DRT orders. You will have to pay the entire amount and take the possession certificate . 

The property was auctioned under the sarfaesi act because the borrower couldn't pay the loan. This happens all the time. He hasn't appealed agaisnt the order and so it has become final.

Proceed ahead.

Regards 

You are at liberty to purchase property in auction 

2) sale has to be confirmed by DRT 

3) you would have clear and marketable title to property 

- Under the SARFAESI act, at the time of the auction, the bank has either symbolic possession or physical possession of the property .

- Hence, under section 17 of this Act, the defaulter has his right to appeal with the DRT , within the period of 45 days from the date of order of auctioning. 

- Since, it is ex-parte order , hence the defaulter can move an application for setting aside the said order of auction. 

- But, it is clear that the defaulter not come forward due to non payment of the loan amount before the DRT, hence this order is final . 

- Check all the documents at the time of depositing the auction amount. 

Hello,

Don't go after this untill the limitation period is over.

Regards

When buying a property in an auction, it is important for you to ensure all documents are in place. As a rule, banks do not undertake any responsibility of such properties and in case of a dispute you may have to fend for yourself. verify It is issued by a Debt Recovery Tribunal (DRT) to banks or financial institutions. By granting an RC, the DRT authorises a bank to proceed with the property auction. 

You can purchase the said property after 90 days from the date of ex-parte order i.e. expiry of appeal period. But you should search and verify others documents.

The bank auctioned property can be purchased provided the bank has taken physical possession and handed over the sale certificate as well as executed a registered sale deed in your favor.

Before that you may also confirm if there is any litigation pending.

What is exparte order  in sarfaesi act?

You can buy property if the Ex-parte order have not been challenged by defendants.

And auction is being held after expiry of limitation period.