Legal Question in Banking Law in India
Sir,
We are secured creditors. An account became NPL and we have possessed the property by following the due process of law. Now the value of the property has become low due to the current market situation. We are going to issue sale notice inviting tenders. Under these circumstances
1) Can our Company take part in the auction and buy the property?
2) If so, can the buyer and the seller be a single party?
3) If not possible can you guide me the way out?
3 Answers from Attorneys
Dont participate in the auction. as a creditor you can retain the same to the highest bid amount. or wait for the right time to auction. [email protected]
You will have your lien on the property in any situation.
If the bids are not up to the desired level, the company/bank which brings the property to sale can itself purchase the property. There is no inconsistency in the secured creditor figuring both as seller and purchaser, if the property is bid at the best possible price by the secured creditor. The usual precaution is to invite tenders and only if it is satisfied that the bids are not up to the desired level, the secured creditor can acquire the property to itself.
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