Legal Question in Banking Law in India
The Bank had demanded an amount of Rs10 Lakh as per SARFAESI Act. Thereafter the Bank took action under SARFAESI Act and sold the property. However the succeffull bidder failed to deposit 75% of the sale amount and therefore the Bank forfeited about Rs3 Lakh deposited by him. Now the Bank has again put a sale notice stating that the sale is for recovery of Rs10 Lakhs due (ie the original dues). The Bank has not adjusted the amount of Rs3 Lakhs towards the actual dues. Is hte action of the Bank correct. Is not the Bank bound to adjust the forfeited amount towards the actual dues.
2 Answers from Attorneys
The bank is responsible to credit this amount towards outstanding dues of defaulter.
www.lawconcern.com
The Bank is responsible to credit this amount towards outstanding dues of defaulter subject to first recovery of expenses incurred by the Bank in connection with adv. auction etc.
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