SARFAESI Auction Stay Lawyer in Delhi for Residential Property Protection
When a bank auctions your house, you may think that you are going to lose your home. There are countless cases where Delhiites have faced this circumstance due to emi.default or other issues which may arise during emi.payment.
Can one stop sарфesi auction of house? Yes, under certain conditions. If there are any irregularities done by the secured creditor, the borrower can approach DRT and seek relief by filing a complaint against them. One can also negotiate with bank and clear the dues. It also depends on the facts of your case and what evidence you have.
Stay on bank auction under SARFAESI Act by best auction stay lawyer in Delhi. Advocate BK Singh specialize in handling cases like Loan against property, Bank auction case, Notice of taking possession & much more.
You need to take quick action as soon as the secured creditor has initiated any process of possession or auction of your property. Even if it is your home, you should not disregard any notices that you have received.
Following are some details regarding how to approach DRT for stay on auction: –
Why Does a SARFAESI Auction Stay Matter in Delhi?
Delhi home owners. If you have received notice of recovery for your residential flat / builder floor / house or any other secured asset then please read further. Entire family can be affected if your house goes for bank auction.
No due process was followed by your bank or finance company. You disagree with the amount or have a legitimate legal reason to challenge why your house is being attached.
BK Singh Advocate can help you identify if you have a valid challenge against the bank. Just because it's your house does not mean you will get a stay. Bank as a secured creditor can sell the security.
Quick Facts About SARFAESI Auction Stay
- SARFAESI means Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002.
- As per section 13(2) a demand notice will have to be issued giving a notice of 60 days.
- Borrower can file a representation or object to such demand notice as provided under section 13(3A).
- Enforcement action including but not limited to taking possession of secured asset.
- Remedy provided under section 17 before DRT against any qualifying measure as provided under section 13(4).
- DRT can grant suitable relief which would be fit in light of law.
- Sale of residential property can be contested if there are sustainable arguments.
What Is SARFAESI Auction Stay?
It's a stay that can be applied on an auction or recovery proceeding by an Interim court order from any appropriate forum where the Borrower can question the validity of such proceedings.
It can help you save your property or stay off from doing certain irreversible act until further order of the court. Keep in mind that this doesn't mean that your Loan will be cleared off or the Bank won't recover their money.
If you are looking for relief from the Bank then make sure that you are aware about the difference between:
- Questioning an improper recovery process.
- Getting a stay on an auction that is due to happen.
- Settling up with the Bank.
- Having a final verdict on your case regarding the recovery.
Each have its own set of implication.
What Is the Legal Framework for Stopping a Property Auction?
Most of the secured assets will be governed under SARFAESI act and Rules 2002.
Section 13(2): Demand Notice
The secured creditor can issue a demand notice asking the borrower to repay the secured debt which they intend to call upon and pay within next 60 days from the date of notice. This notice shall mention the amount to be called upon and the security for the same.
The borrower has to verify the amount called upon and their loan account and security provided to bank against such loan and served notice.
Section 13(3A): Representation by Borrower
The borrower has a right to make a representation to the secured creditor against his demand notice. The secured creditor shall consider the said representation and give his reason for rejection of the same if he chooses to reject.
You can represent to the bank at this stage about any discrepancies if any with the amount called upon or the action which bank is proposing to take.
Section 13(4): Steps taken by the Bank
Bank can take the following steps allowed under law after giving opportunity to borrower to repay the debt. These steps are known as qualifying measures and includes taking over the possession of the security and take steps for its sale.
Section 17: Filing before DRT
Any person who is aggrieved by a qualifying measure taken by the secured creditor u/s 13(4) can file a petition before the Debt Recovery Tribunal.
Such application has to be normally filed within 45 days from the date of said qualifying measure taken by bank. The DRT will examine such application and see if bank had followed the act and rules in taking such measures.
At Advocate BK Singh we will examine if your case is eligible for such application and can seek suitable reliefs for you.
When Should You Consult a SARFAESI Auction Stay Lawyer in Delhi?
Times you should seek legal advice.
- If you receive a possession notice.
- If the bank has advertised the auction.
- When the auction date is approaching.
- If you believe you do not owe the shortfall.
- If the bank has not dealt with your representative.
- If you feel the debt was not recovered following the required steps.
You could potentially shoot yourself in the foot by waiting until after the auction has been completed. There maybe relief after the auction, this will depend on your individual circumstances and the law.
How Can DRT Lawyer Help With a Residential Property Auction?
They handle DRT cases such as SARFAESI process, secured property case, bank recovery cases etc.
BK Singh Advocate will read your notice/loan/property documents and advise you what you can do.
Following are the things they can do for you:
- Review your Demand notice / Possession notice / Auction notice.
- Evaluate if you have any scope to approach DRT.
- File your DRT petition.
- Try to get stay on the process if you are eligible for the same.
- Guide you about Settlement option, if suitable.
Only thing that can be promised is that they will try their best to get your auction stayed or loan settled. All this depends upon the facts of the borrower.
Visit:DRT Lawyer
Frequently Asked Questions
1. Is my house going to be auctioned under sarfaesi act?
Ans: Provided that borrower has sufficient cause he can approach to DRT for injunction against the auction. DRT will hear your matter and provide justice according to facts and laws.
2. Who can stop auction of my house by bank?
Ans: Hire a lawyer who knows banking law and specializes in SARFAESI and DRT. They can check your notice and verify if there's any scope to appeal and stop your house from being auctioned.
3. Will bank auction my only house?
Ans: Yes if the bank follows all the required legal formalities. They can sell off your home.
4. Can I file for DRT before auction of my house?
Ans: If an action has been initiated against you under section 13(4) you can approach to DRT.
5. How many days do i have to file petition under SARFAESI ACT?
Ans: You get 45 days from the date of action initiated by the bank under section 13(4) to file an application to DRT under section 17.
6. Can my lawyer help me get stay against auction?
Ans: Your lawyer can file for an interim injunction against the auction. But ultimately the decision will be made by the tribunal. If you can prove that your case is urgent you can get an order by providing proof.
7. Can I object against the auction of my house?
Ans: Objection can be made by you to protect your property. But that will depend on your case situation. Consult a lawyer to know your options.
8. Bank has sent 13(2) notice. Will they auction my house?
Ans: When you receive a Section 13(2) notice, the bank is informing you that your account has been classified as a non-performing asset (or NPA). They are asking you to repay the loan within the next 60 days. If your house still gets selected for auction.
9. Bank is auctioning me house for incorrect amount, what should I do?
Ans: You can definitely dispute the amount that bank is claiming you to have owe them. If you haven't paid the full amount or if they have wrongly calculated. Provide your bank statement and proof of transactions.
10. Can bank sell my house without informing me?
Ans: If the bank has not informed you about the action they intend to take against you. There are chances that they haven't followed the procedure as per the Act. You can file a case against the bank.
11. Can i settle my loan when i have received auction notice?
Ans:Settlement can be tried with the bank. But yes you can try settling the loan with bank after you have received notice of auction.
12. If I settle will bank call off the auction?
Ans: It will not guaranteed that your loan will be settled and auction will be cancelled. Please get a written acknowledgement from bank regarding their response.
13. Can Owning partner can challenge SARFAESI auction?
Ans: Yes Co-owner can challenge. It all depends on the security provided by co-applicant and the documents which proves his ownership.
14. Can Guarantor file objection against bank auction house?
Ans: If you have provided the bank with your house as security by becoming a Guarantor and your house is being sold off by the bank. You can take the following legal actions against the bank.
15.Can my bank sell my Flat which is located in Delhi NCR?
Ans: Yes, The bank can certainly auction your flat. If the mortgage provided by you is according to the bank's requirement. And they follow the proper channel as mentioned in SARFAESI Act & Rules. The DRT where you can file your application is decided by the location of your property.
16. What should I do if the house is already auctioned?
Ans: If the bank has already auctioned your house off. Then you will have to follow different procedures. You can still challenge the auction but that will depend on various factors of the sale.
17. Can I contest the Auction if some procedural irregularities are noticed?
Ans: Yes if any irregularity is proven that can be legally proven in court. You can go ahead and challenge the sale.
18. What is the fee charged by a lawyer to stop SARFAESI auction in Delhi?
Ans: It will depend on your case. Only after you talk to the lawyer can you know about the fees they will charge.
19. Can you help me stop DRT auction?
Ans: Yes Advocate BK Singh can help you review your documents and let you know if you have any options to stop your house from being auctioned.
20. Will my auction be stopped if i file my DRT application?
Ans: Not necessarily. Even if you file an application to DRT. The auction of your house will not automatically be stopped.
Final Thoughts
Its very disturbing news for your family if your home is auctioned by Bank under Sarfaesi act. But dont despair thinking that you are helpless against banks.
Always read Demand notice, Notice for taking possession, Auction notice and your Loan papers thoroughly. If any defect you can take legal action against bank at proper forum.
You can contact a Sarfaesi auction stay attorney in Delhi and understand from him that whether you have a fighting chance to stop auction or you can get any other relief.
BK Singh Advocate , DRT Lawyer guides you in all types of Secured Property disputes,DRT and Sarfaesi cases.
