File writ petition in HC against forfeiture notice

2) take the plea that you are willing to pay balance amount but the bank is not taking physical possession of property from the defaulter 

3) kindly clarify whether you have done due diligence before purchase of property in auction 

4) you should have checked whether there are any other dues in respect of property .bank must have sold property on as is where is basis 

5) if you pay the balance amount bank is bound to deliver physical possession of property to you 

The bank has rights to proceed as per the terms and conditions of the auction sale.

If you have not complied with the further payments that fell due after the auction sale concluded, you may to abide by the prescribed procedures.

The bank will hand over possession on as is where is basis, it becomes the duty of the buyer to pay the balance amount, take possession and clear all the dues attached to the auction sale property.

You may revert with actual problem faced by you if you are serious to know about procedures of law in furtherance.

a seller is bound to disclose to the buyer any material defect in the property or title thereto.

2)a duty is cast upon the authorised officer of the secured creditor to disclose to the auction purchaser any material defect in the title, failing which it could be construed that the purchaser was misled.”

3) n Atishaya Construction Pvt. Ltd Vs Central Bank of India , the dismayed auction purchaser approached the High Court of Gujarat for a refund of the sale consideration, arguing on the premises that the bank was unable to hand over the possession of the property in question as an application was pending with the Chief Metropolitan Magistrate–something he had not been made aware of before the purchase. The bank pointed its index finger at the ‘as is where is’ clause. The court would have none of it. It ordered the refund.

4) you can file writ petition in HC for refund of your money if bank is unable to deliver physical possession of auctioned property 

i think since there was a non-disclosure by the bank regarding the dues affecting the property under auction, you can seek cancellation of the auction sale in your favour and ask for a refund from the bank

if the bank does not refund your money then you can file a writ petition in the High Court against the bank

however in case you do not wish to cancel the sale in your favour then you will have to approach the DRT and seek orders against the bank 

You can file a writ petition before high court seeking to cancel the auction sale of the property.

But for your information the bank may take a stand that the property was sold on as is where is and as is what is basis and that the intending bidders had to make discreet enquiries as regards the property to satisfy themselves about the title, extent, quality and quantity of the property before submitting their bid.

The bank may further declare that no claim of whatsoever nature regarding the property put for sale, charges, encumbrances over the property or on any other matter, etc., would be entertained after submission of the online bid.

As the petitioner participated in the auction sale knowing fully well that this was one of the conditions of the sale, the bank can assert that he could not now raise an objection as to the title of the subject property not being clear or lawful.

The bank can even counter stating that the rule of caveat emptor would apply and the borrower had to beware, i.e., a careful buyer should take care to examine the item before accepting it or obtain expert advice.

But you should not deter your determination to fight back and get the sale consideration advance amount refunded if found that the bank did not have clear and marketable title to auction sell the property. 

You can also take shelter under the umbrella of the section 9 of the Sarfaesi act which states that :

under Rule 9(1). Clauses (a) and (f) in this proviso are relevant and read as under:

(a) the description of the immovable property to be sold, including the details of the encumbrances known to the secured creditor;

.f) any other thing which the authorized officer considers it material for a purchaser to know in order to judge the nature and value of the property.

In a judgment The Allahabad High Court  observed that a duty is cast upon the authorized officer of the bank to disclose to the auction purchaser any material defect in the title, failing which it could be construed that the purchaser was misled. 

Therefore you may approach high couirt with a writ petition as suggested. 

You can file a consumer complaint against bank for Deficiency of service

- As per Supreme Court, if a property owner fails to pay his dues to the bank, then the bank has the legal right to sell off his immovable property to recover losses.

- But, the task to recover the dues should be performed in a specific manner and Authorities/bank cannot resort to extreme measure.

- Further, if the defaulter wants to purchase that property after paying the entire dues of the bank , then the auction will stand cancelled, and he would be able to claim to the property again.

- Hence, you should approach the bank to purchase the auction property with the defaulter , and on refusal you should move an application before the auction ordering court i.e. DRT, for cancelling the auction and transferring the same to you . 

- As per law, bank is bound to release the mortgage documents to the defaulter, after taking the up-to-date loan amount, and to handover the possession on behalf of defaulter to you. 

- Further, in case of auction of the property and withhold the amount, you can file a case against the bank .