Rule 8(6) and Rule 9(1) of the Security Interest (Enforcement) Rules, 2002 (SI Rules) require that an authorized officer serve a borrower with a 30-day notice before selling their immovable secured assets: 

 Notice to borrower: The authorized officer must serve the borrower with a 30-day notice. 

 Public notice: If the sale is by public auction or public tender, the secured creditor must publish a notice in two leading newspapers. One of the newspapers must be in a vernacular language with wide circulation in the area. The notice must include sub-rule (5) and Appendix IV-A. 

 The purpose of the notice requirements is to:

Provide the borrower with a reasonable opportunity to repay the debt

Ensure that the asset is sold for a good price

Ensure that the borrower's vulnerable position is not exploited 

bank should issue both an 8(6) - 30 days redemption notice and a 9(1) - 15 days publication notice if a property is listed for auction for the second time or later

2) The notice period gives the borrower a chance to clear their dues or negotiate with the lender to avoid the sale of their assets. If the borrower doesn't repay the amount within the 30-day period, the secured creditor can issue a sale notice. At that point, the borrower's right to redeem the property is extinguished. 

Under Rule 8(6) of the Security Interest (Enforcement) Rules, 2002, an authorized officer must issue a 30-day notice to the borrower, giving them a chance to repay their debt before proceeding with the sale of their property. Additionally, Rule 9(1) requires that, if the sale is through public auction or tender, the bank must publish a notice in two newspapers, including one in the local language, to maximize awareness and promote a fair sale.

If the initial auction fails and a subsequent auction is scheduled, a 15-day notice under Rule 9(1) usually suffices, and another 30-day notice is not necessary. This approach provides the borrower an opportunity to repay while ensuring the asset sale is conducted openly and fairly.

Your query is not clear to me.

However, I may inform as you wanted that I am an empanelled advocate of several public and private sectors Banks.

Yes it’s correct as stated above 

yes second time notice has to be issued to the borrower if the 1st auction failed

property right is a valuable right 

so every attempt made by the bank to auction the property would be subservient to the right of the owner/borrower to redeem the mortgage and save his property from being sold in auction

this has been held by the SC in a judgement whose details i dont have handy at the moment

- As per rule , when a bank issues a property for auction for the second time or later after a failed first auction under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), then under section 8(6) of the SARFAESI Act, if a bank intends to sell the secured asset/ property through a public auction after the borrower defaults, they are required to issue a 30-day redemption notice to the borrower.

- Further, under Section 9(1) of the SARFAESI Act, after the 30-day redemption period , the bank is required to publish a notice in a newspaper. This is a 15-day publication notice informing the public of the upcoming auction.

- Further, if the auction is happening for the second time after a failed auction, the bank must issue both notices again, starting with the 30-day redemption notice under Section 8(6)) and then moving to the 15-day public notice under Section 9(1)) once the redemption period expires.

1. Before taking possession of the property, the bank typically sends a notice of default to the borrower. This notice serves as a warning and often provides a period during which the borrower can rectify the default by making the overdue payments or taking other necessary actions.

2. Right to Take Possession: If the borrower fails to cure the default within the specified timeframe, the bank may exercise its contractual right to take possession of the property. This typically involves the bank's representatives entering the property, changing locks, and securing it

possession notice is distinct from the notice for sale of the secured asset. In that, possession notice is required to be given in terms of Rule 8(1) read with Rule 8(2). Whereas, a notice of intention of sale is required to be given to the borrower in terms of Rule 9(1) read with Rule 8(6) of the said Rules.

No, the bank cannot take physical possession during the 30-day notice period under Rule 8(6) as it would violate the borrower’s right to redemption. Taking possession prematurely can lead to legal challenges, procedural irregularities, and impact the validity of the auction. Physical possession should only be taken after the redemption period ends and all procedural requirements are fulfilled. Ensure compliance with both Rules 8(6) and 9(1) to avoid legal complications.

If DM has passed an order for providing protection for possession then the bank can very well proceed with physical possession and auction sale subsequently. 

You can approach bank for one time settlement or any other option provided bank is entertaining your request on certain conditions. 

if the notice period is not over then the physical possession cannot be taken since the very purpose of giving notice to the borrower is to give him a chance to redeem his property by repaying the loan 

- You can move an application to the bank 

You may contact your own advocate for searching a suitable judgement as per your requirement.

The law is clear in this regard that once the DM has passed an order to give protection to the bank staff for physical possession the process can be stalled only by an order of high court in a writ petition.

Litigation is long drawn process 

you have to approach court for early hearing 

Yes if there is no stay then bank can also take earlier possession 

If property has been registered in your name and 2 years have passed and no legal  proceedings taken till date sake would not be set aside 

Bank procedure was CORRECT:

• For second auctions, only Rule 9(1) 15-day notice required

• No Rule 8(6) 30-day notice needed for subsequent auctions after first failure

Your position is SAFE:

• Auction procedure followed law correctly

• Property registered in your name = strong legal protection

• Sale unlikely to be cancelled on procedural grounds

If the bank has delivered physical possession and also executed the registered sale deed two years ago and ther is no litigation or legal dispute as on this date, you may remain silent about it, you can handle the situation accordingly when a dispute or litigation arises.

You are protected the bank will indemnify you in case of any issurs

- As per the Supreme Court , the right of redemption ends upon publication of the auction notice, not upon completion of sale, and rejected the borrower's attempt to redeem the mortgage after the auction notice had been published..

- Further, once the auction sale is confirmed , it cannot be set aside merely due to procedural irregularities., and the bank is under obligation to to issue the sale certificate, and cannot then entertain the borrower's redemption plea.

- Hence, if the sale deed already registered in your name then it cannot be cancelled on any ground.