Legal Question in Banking Law in India

Dear Sir,

Bank auctioned property on 8-1-2014 �AS IS WHERE IS� and �AS IS WHAT IS BASIS�. Obtained registration department certified copy of sale deed and Encumberance certificate. Found it is in order. Proceeded for an auction and I am the successful bidder. In the auction sale advertisement or personnal discussion with the bank it was not told DRT and civil court there is a dispute pending with the borrower. Orally it was assured that it is the bank responsibility to give a peaceful possession at the time of final payment. Final payment day possession is not vacated by borrower and I have not made final payment which is due on 23-1-2014. Now the bank is threatening me forfeit the initial payment of 25%, since I have not made the final payment. How do I get the bank and borrower court dispute information before I participate in the auction. Is it required to appoint a lawyer before participating any bank auctions.

Request your advice on this.


Asked on 2/24/14, 4:30 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

24.02.2014

Dear Sir / Madam,

You ought to have verified the present status of the property and confirmed clear title of the property, before the auction bid took place. The bank on its part is equally liable to disclose this material and important fact in the tender document, failing which there is deemed misrepresentation of important material facts. If the fact of court dispute has been missed out by the bank, it is liable to refund the initial payment of 25% collected by it from you.

Regards,

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Answered on 2/24/14, 6:11 am


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