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Procedure if auctioned property claimed by other banks as well


08-Aug-2023 (In Property Law)
I am applying for the on line bid by Bank for Industrial property which is on lease by Jharkhand AAIDA. The property which is being auctioned is by one public sector bank.Suppose, I get succeeded in the bid and thereafter other banks comes forward for the settlement on the same property then am I going to be liable to settle them or I can show the court paper which I would have collected after the successful bidding.Please advice.(In this case, heard that there might be the claim of other banks also on the same property but only one bank has got the verdict to sell the property to recover their dues from court/Debt recovery Tribunal)
Answers (1)

Answer #1
815 votes
Venerated Sir,
As per the law of Auction it is the duty of the auctioneer to give the sale certificate along with possession over auction property. Suppose in the mean time third party will claim over the property then you have right to sue against auction bank to give the property which must be free from all liabilities and encumbrances. Auction bank will revert your payment with interest or give possession peacefully. Feel free to call me for more information.

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