Regarding property in bank and case running in DRT
ACTUALLY my father took loan from bank keeping his property which was given by my grandfather, 7yrs back. due to some unfortunate conditions he was unable to pay money to bank , so we thought of selling the property and pay to the bank people. but by the mean time case was filed in DRT regarding the auction notice given by bank people. so its been 1yr case running in DRT and finally they gave order that money should be paid within 2 months, if not bank people will be eligible to go for auction. this was given by kolkata tribunal court. so is there any option to prolong the case further or is this final..?? actually we are in debt to clear the loan and debts outside too. no one is coming front to buy the property. pls help me out from this debts. actually the value of property is 30c which is going in auction for just 8c. apart from this we have debts of 4c outside. do i have any chance to quote the market value in auction..??? pls help us ..
Asked in Property Law from Kakinada, Andhra Pradesh
Hi, you have to file an appeal before the DRAT, provided you have to deposit the 50% of the amount.
2. You have an option to file an appeal in the mean time find a suitable buyer for your property.
1) what is amount payable to bank ?
2) you can make part payment and seek extension of time to pay balance amount
3) if you don't make any payment property would be auctioned by DRT to highest bidder
5) there must be reserve price fixed by DRT based on valuation report submitted by valuer
6) if according to you value of property is 30 crores reserve price would not have been kept at 8 crores
7) DRT can pass orders for fresh valuation be done if you are able to satisfy DRT that valuation report is flawed
No bank can sell the property with out following the procedure of law. So you can also file objection to the the valuation report of the property before the DRC court in EP proceedings .The same time you can file the appeal against the DRT order. If you are ready and willing to pay the amount then you file an application for payment of installment.
1. The only way to buy more time to repay the loan to save the property is by challenging the order of DRT in the High Court which can order a stay on the order passed by DRT.
2. The auction is carried out at a throwaway price by the bank regardless of what the market value is.
1. Since the DRT Kolkata (probably DRT-III), has already directed you to pay the outstanding with in 2 months, you shall have to comply with the order,
2. The trick in such case is to find out fault with Bank's SARFAESI proceedings on different counts and also place a one time settlement proposal before the Bank,
3. Now, you can take objection to the valuation report submitted by the Bank to stall the sale of the property.
There are chances to prolong the issue by filing an appeal against the DRT decision before DRAT, if you have exhausted that source too, you can file a writ before the high court to stay the proceedings mentioning that the the high value property is lily to auctioned at a very low and negligible amount thereby causing an irreparable loss hence either to quote the vale at higher rate or to allow you more time to to settle the loan. No doubt you may not get any favorable judgement because it is against the DRAT however you can buy time this way which would enable you to arrange for funds or disposal of the property to a third person.