An NPA asset which was declared by bank put on auction has been declared as "Prohibited Property" by Govt as the borrower failed to pay the tax dues. The high court favoured to Govt side, and bank want to move to Supreme Court thru SLP. just wanted to know in how many days the bank need to register the property to auctioneer who has been failing due to litigation.
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I am not sure about the status of the auctioneer without seeing the case record or order.
The property seems to be barred from public dealing in which event the right of action purchaser has not been crystallised.
Unless and until the Govt lift the ban on the property by lifting the status of ' prohibited property' willingly or by order of supreme court , the auction purchaser can not get the proeprty.
There is a very important supreme court decision on the self same issue.
If the auctioned property is under litigation and the bank shall not be able to register it to the bidder, then the bank has to wait for the completion of all the litigation in this regard to initiate the process of registration to the buyer.
There is no time limit on it.
Has the SLP been decided? Unless the SC has stayed the operation of the HC's judgment the latter will prevail. Unless the SLP of bank is allowed by the SC the bank cannot register the property in favour of the auctioneer. If the auctioneer was not a party to the dispute before the HC he should apply for impleading himself before the SC.
In normal circumstances, the sale will be confirmed 30 days after the date of auction and the auction purchaser shall be issued with a Certificate of Sale.
2) case of pendancy of any Petition/ Appeal confirmation of sale is subject to the outcome of the Petition/Appeal.
Are their any chances to get the Auction purchaser money back, the high court has been ordered to return the auctioneer's money back, still the bank wanted to go to SC thru SLP, the date of sale certificate is issued last year October, still how many days it is valid.
if HC has passed orders to return the auctioneers money back and bank has not complied with HC orders then you can take out contempt of court proceedings against the bank
2) since no SLP has been filed bank should comply with HC orders and refund your money
If the purchaser wants the money back , he may write to the bank seeking refund of the same based on the court verdict, in fact he may issue a legal notice to this effect.
Failing to respond, the buyer can initiate recovery suit on the basis of the court judgment