1. What was your outstanding amount when your property was auctioned? Was it more than tye reserved price kept by the Bank for selling the said property?
2. When you have availed loan from the Bank, you shall have to repay it with agreed interest within the specified time. If for consequtively for three months there is no EMI payment for a loan, the Bank declares the loan account as Non Performing Asset after which it initiates SARFAESI Proceedings by issuing Demand Notice u/s13(2) of SARFAESI Act,2002 demanding the outststanding to be paid within 60 days & if it is not paid, the Bank issues Possession Notice u/s13(4) of the Act,
3. At this time, the borrower files Application u/s17 of the Act finding fault with the said SARFAESI Proceeding and prays for stay order,
4. After taking symbolic or physical possession, the Bank sells the property by keeping a reserved price below which the property can not be sold,
5. The property can not be sold in a single auction if there is a single bidder,
6. Moreover, the property can not be sold below the reserved price,
7. You are silent on whether you have filred any application before the DRT to set aside the said sale or not?
8. However, if you have already agreed to accept the faults of the Bank in taking SARFAESI Action then nothing can be done,
9. After realising part of the outstsnding, the Bank will file Original Application (if the balance is still more than Rs.10 Lakhs), to realise the balance amount,
10. On receipt of the Possession Notice, you should have approached the Bank with a One Time Proposal to settle the dues at the ledger amount,
11. Now, approach the Bank with a proposal to settle the dues at the ledger amount and square up with the sale proceed which the Bank has already received,
12. No-Due Certificate will be issued by the Bank only when all your outstanding will be settled and there will be no due show in your said loan account.