1) what was total amount due and payable by you ?

2) when was property auctioned by the bank ?was notice issued to you before auction ?

3) has sale been confirmed by Debt recovery Tribunal ?

4) you can file an appeal against order auctioning your property and offer to pay the dues of bank with interest if sale is set aside

5) however if considerable time has elapsed since auction sale will not be set aside

You are not clear on the nature and current status of the litigation as You have stated in the query.

Without knowing these vital details I can not advise properly on this,

1. On what basis you call it ancestral property?

2. What is the nature of the lawsuit filed by your neighbour? What was the outcome of the case filed by your neighbour? Unless your neighbour had any legal right in the property he could not have sued you.

3. The amount borrowed was only 3 lakhs. It seems that on default in repayment the bank took possession and auctioned the property. What was the market value of the property when it was sold? The sale proceeds could have been pocketed by the bank only to the extent of the amount due to it whereas the balance was to be remitted to you. Be that as it may, it was a blunder on your part to not to avail the legal recourse against the bank to stop it from auctioning the property.

4. There is no way you can get the property back after it has been auctioned except if you can prove that the auction was not held in accordance with the law.

5. The only right which you can now enforce is the right to get back the balance of sale proceeds, if any, was left after applying it towards the secured debt. So you must find out at what rate the property was auctioned. It may be added here that in a auction the property may be sold at a throwaway price.

Did you get any notice from bank for auction?when was property auctioned by the bank ?When you took the loan from Bank?If the matter is in DRT then file appeal and stay if the notice is not supplied properly.File an appeal against order auctioning your property and offer to pay the dues of bank with interest if sale is set aside.Try for an amicable settlement with bank

Yes, you can talk to the bankers about the repayment of loan and can also get it restructured so that you can make one time settlement waiving a considerable portion of interest.

It will again depend on the bank manager to waive interest to some extent using his discretionary power.

What were you doing so long? You can even approach civil court with an injunction suit stating that you have ot been informed by the bank about the loan and their sudden action is against the natural justice.

If your account was declared as Non Performing Asset, it was only then that the bank could have auctioned your property to recover its dues against the loan obtained by you from the bank.

You can get the property bank only if you are able to prove that the auction was not conducted as per law. If the auction so conducted can be set aside then only u could have got the property back. however it seems that huge time has elapsed and now, the limitation as well would have expired for u to file a case against the auction so conducted.

If u received the auction notice etc, then what you can claim now is the extra amount which the bank may have got on the auction of the property in case the surplus amount was received ater setting aside your loan and the interest accured on the loan.

1.Please check up whether the highest bidder was confirmed as the Buyer of the property in the auction and also collect information whether the successful bidder got the property registered in his name.

2. If the property is not yet registered in the bidder's name, meet the bidder and request him of your desire to retain your property by paying little extra money.

3. Since as a borrower you have defaulted on repayment of your home loan for quite a long time and the bank would have waited for your action and would have despatched you several notices to your last known address. If instalment amount is not paid for 3 months at a stretch, the bank would have given you a 60 days period to regularise the repayment i.e.,to start repaying the home loan. Since there was no response from you and on failure to repay the home loan by you, the bank would have declared the loan a NPA and auctioned it to recover the debt.

4. Banks and financial institutions are empowered to auction the properties under the SARFESI (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest) Act, 2002 when borrowers fail to repay their loans. It enables banks to reduce their non-performing assets (NPAs) by adopting measures for recovery.

1. Did you mortgaged your said property with the Bank while availing the said loan?

2. If yes, then it appears that the Bank has initiated SARFAESI Proceeding and after issuing Notices u/s 13(2) and 13(4) has taken possession of the property and has sold it,

3. If the property was under lock and key then it is clear that the Bank has broken open the said lock to take physical possession of the house for selling it,

4. File a Writ Petition before the High court praying for a direction upon the Bank to cancel the sale and return the possession of the house since iit's possession was illegally taken by breaking open the lock put by you,

5. You shall have to make the buyer of the house also a party to the W.P. and assure that you are agreeable to refund the loan amount with interest which you could not do since you did not get the Notice from the Bank.