Yes, Bank would be happily accepting your request to repay the mortgage loan with concession as you are going for one-time settlement for clearing the loan. Please contact the Bank with your proposal to clear the loan with concession.

You can file an application before DRT seek stay of auction 

offer to repay the loan amount 

seek waiver of penal interest charged by bank 

Approach the bank 

make offer for OTS 

if bank k refuses approach DRT seek stay of auction 

You have following options…

1. Under guidelines issued by RBI you can seek one time settlement. The minimum amount that shall be recovered under the revised guidelines in respect of one-time settlement of NPAs classified as doubtful or loss as on March 31,2004 will be 100% of the outstanding balance in the account as on the date on which the account was categorised as doubtful NPAs.
2. Under serfeasi you can take part in auction sale of your property and bid for purchase amount.
3. But the first offer is better.

The SARFAESI Act, 2002 is a law that allows banks and financial institutions to recover their dues from defaulting borrowers by selling their secured assets without the intervention of courts. The secured assets are the properties that are mortgaged or pledged by the borrowers as security for the loans.

In your case, you have taken a loan from Bank of India (BOI) by using your house as mortgage. You are unable to repay the loan amount and your account has become non-performing asset (NPA). Now, the bank is ready to sell your house under the SARFAESI Act. You are ready to pay your loan amount to the bank and want to know if the bank can offer you any offer or concession on your loan amount.

To answer your question:

• The bank may or may not offer you any offer or concession on your loan amount, depending on various factors such as the amount of loan, the amount of default, the value of the property, the market conditions, etc. The bank has the discretion to decide whether to accept or reject your offer or proposal for repayment of loan.
• However, you have the right to make a representation or objection to the bank against the notice of sale of your property under section 13 (3A) of the SARFAESI Act within 15 days of receiving the notice. You can request the bank to reconsider your case and give you an opportunity to repay your loan by offering some settlement or compromise or restructuring of loan3.
• You can also approach the bank before the auction date and try to negotiate with them for a one-time settlement (OTS) or a repayment plan that suits both parties. You can offer to pay a lump sum amount or instalments that cover the principal and interest dues along with some penalty or charges. You can also request the bank to waive off some interest or charges or reduce the rate of interest as a gesture of goodwill4.
• If the bank agrees to your offer or proposal, you can enter into a written agreement with them and pay the agreed amount within the stipulated time. The bank will then stop the auction process and release your property from mortgage. You will also get a no-dues certificate from the bank that will clear your credit history.
• If the bank does not agree to your offer or proposal, you can file an application before the Debt Recovery Tribunal (DRT) under section 17 of the SARFAESI Act within 45 days of receiving the notice of sale or taking possession of your property by the bank. You can challenge the validity of the notice of sale or possession and seek a stay order on the auction process. You can also seek relief such as restoration of possession, compensation, damages, etc.
• 
  Restructuring of Loan: Depending on the bank's policies and your repayment capacity, the bank might consider restructuring your loan, which could involve extending the loan tenure, changing the interest rate, or offering a repayment holiday for a specific period. This can provide you with some relief and more time to manage your finances

• A loan defaulter can approach the high court for restructuring of loan only in cases, such as when there is a violation of fundamental rights, abuse of power, fraud, or malafide intention by the lender. The high court has the power to issue writs under Article 226 of the Constitution of India to protect the rights and interests of the borrowers.

• You can also file an appeal before the Debt Recovery Appellate Tribunal (DRAT) under section 18 of the SARFAESI Act within 30 days of receiving the order of DRT, if you are not satisfied with it. You can seek a review or modification or reversal of the order of DRT.

You need to apply for stay in the DRT for the same 

As you are willing to redeem the mortgage now, please contact the bank branch immediately. Put your offer in writing and request them not to go ahead with the sale. Meet the higher-ups in the bank and negotiate a deal. The bank may consider your offer within the framework for such out-of-court settlements. Good luck!

- As per the RBI, the bank should give proper time and offers for the settlement of loan amount. on the ground of health and sudden loss.

- The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act is a powerful instrument in the hands of the banks and financial institutions as secured creditors.

- 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 continue in 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 can approach the bank to pay the dues  , and on refusal you can 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.

Approch DRT and obtain stay on auction. In court you can offer one time settlement and may be lesser to loan  amount. 

Under Section 13(8) of the the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ("SARFAESI Act"), the transfer of the mortgaged property in public auction can be stalled only when the entire dues along with all cost, charges and expenses are paid to the Bank before issuance of sale certificate.

• There is no restriction on the equity right to redeem the mortgage available to the mortgagor; 
• Right of redemption is not lost merely because an auction bid has been accepted; and 
• The mortgagor can exercise the right to redeem the mortgage until conveyance of the property by issuance of sale certificate. 

The right of redemption is clearly restricted till the date of publication of the sale notice under the SARFAESI Act, whereas the said right continues under Section 60 of the Transfer of Property Act 1882 till the execution of conveyance of the mortgaged property.

As far as waiver of interest or discount through OTS, it depends on the bank's discretion, there is no statutory law governing this situation.

Dear client 

When your property is scheduled for auction under the SARFAESI Act, it means the bank has initiated the process to recover the outstanding loan amount by selling the property. However, there may still be some possibilities for negotiation or settlement with the bank before the auction takes place. Here's what you can do:

Contact the Bank: Reach out to the bank immediately and express your willingness to repay the loan amount in full. Explain your current financial situation and your intention to settle the debt.

Negotiate: While the bank is not legally obligated to offer concessions or discounts on the loan amount, you can try to negotiate with them. Banks may consider waiving penalties, reducing interest, or providing a repayment plan if they see a genuine commitment to repaying the loan.

Formal Settlement: If the bank is willing to negotiate, ensure that any settlement agreement is put in writing. This agreement should detail the terms, including the final repayment amount, the timeline, and any concessions granted.

Auction Postponement: If you reach an agreement with the bank, you can request them to postpone the auction date. The bank may consider this request if they are satisfied with the repayment arrangement.