Legal Question in Banking Law in India

withdrawing from the auction after paying earnest money

Dear sir, can i take back the earnest money once i won the auction if i found the immovable proerty (residential flat in an apartment) is leagally not clear after winning the bid which is conducted by National bank?


Asked on 1/24/09, 2:19 am

4 Answers from Attorneys
Prof.Somnath Mukherjee s.mukherjee associates,09874053359

Re: withdrawing from the auction after paying earnest money

I think that you should give anotice to the bank after you may approach to the consumer forum to get the proper relief.

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Answered on 1/24/09, 8:54 am
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: withdrawing from the auction after paying earnest money

Yes.

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Answered on 1/26/09, 12:02 am
J. Radhakrishnan independent Practice

Re: withdrawing from the auction after paying earnest money

your question is not properly worded. If after you were the successful highest bidder and if before remitting the balance price, you found that the title of the mortgagor to the bank is not clear, then you cannot avoid paying the balance and if you fail to pay the balance, the earnest money will be forfeited by the Bank. In these cases, the buyer has to be beware of the title of the mortgagor before bidding. It is known as 'caveat emptor" (purchaser beware).

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Answered on 1/24/09, 6:23 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: withdrawing from the auction after paying earnest money

Yes, if you find any cloud on the title, you may seek cancellation of the transaction of demand refund of your money.

If required, you may approach the consumer court for appropriate relief in case of denial by the Bank.

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Answered on 1/24/09, 7:23 am


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