Legal Question in Banking Law in India
Bank held sale under SARFAESI Act and issued sale certificate. Now the purchaser has represented that there is no such property as mentioned in the sale certificate. The Bank is also convinced regarding the same. Can the authorised officer now register a document cancelling the sale certificate. What is the procedure to be followed. Whether any notice is required to be sent to the borrower and mortgagor before cancelling the sale certificate and should he be given an oppurtunity to explain things. Whether there is necessity for cancelling the sale certificate? or can the sale certificate be just ignored.
4 Answers from Attorneys
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The purchaser has to file a suit for cancellation of the sale certificate impleading the Bank and the borrower. It is also possible for the authorized officer and the purchaser to jointly execute a cancellation deed and have it registered. The auction purchaser should also get the refund of the amount paid by hm
The Bank may, after giving notice to the borrower and mortgagor, cancel the sale and take appropriate civil / criminal action against the borrower for recovery of its dues.
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