Legal Opinion Regarding Auction sale of the Mortgage Property A/C. Company 1, A Proprietorship Concern of MR.X

Mr. Z

Address….

Dear Sir,

RE:      LEGAL OPINION REGARDING AUCTION SALE OF THE MORTGAGE PROPERTY, A/C. Company 1, A PROPRIETORSHIP CONCERN OF MR. X.

Please refer to your letter dated 12.06.2005 on the above subject.

We have perused the contents of your letter and papers/documents referred to us. We understand that Bank 1 sanctioned overdraft facility of Tk.4,00,000.00 in favour of M/S. Company 1, a proprietorship concern of Mr. X (the borrower) against registered mortgage of land standing in the name of the borrower. The borrower availed the loan in full but failed to adjust the same. The validity of the credit facility expired lastly on 03.10.2004. The Bank published auction notice in the daily newspaper on 17.05.2005 for sale of mortgage property in compliance of section 12 of Artha Rin Adalat Ain, 2003. One bidder participated in the auction bid and offered Tk.4,99,466.75 to purchase the mortgage property which is equivalent to the outstanding liability of the borrower/mortgagor. However, as per opinion of the Branch, the property is valued at Tk.9,90,000.00. In such situation the matter has been referred to us and we are requested to advise as to whether Bank can accept the single bid or whether there is a possibility of challenging the bank’s action by the borrower/mortgagor in the Court of Law by seeking compensation or whether Bank should publish action notice again since there was only one bidder participated in the first auction bid.

Our opinion is as follows:

The purpose of publication of notice is to get the best possible value. One publication of notice would have been enough had there been more than one bidder. But in this instance only one bidder participated. In such situation for the sake of fairness, we advise to publish second notice and see if the offer is improved. If no better offer is received then Bank can proceed to dispose of the property at the auction price.

If you have any further query, please do not hesitate to contact the undersigned.

Thanking you

Yours faithfully

………………….

For: “The Lawyers & Jurists”

Disclaimer:

The information contains in this web-site is prepared for educational purpose. This site may be used by the students, faculties, independent learners and the learned advocates of all over the world. Researchers all over the world have the access to upload their writes up in this site. In consideration of the people’s participation in the Web Page, the individual, group, organization, business, spectator, or other, does hereby release and forever discharge the Lawyers & Jurists, and its officers, board, and employees, jointly and severally from any and all actions, causes of actions, claims and demands for, upon or by reason of any damage, loss or injury, which hereafter may be sustained by participating their work in the Web Page. This release extends and applies to, and also covers and includes, all unknown, unforeseen, unanticipated and unsuspected injuries, damages, loss and liability and the consequences thereof, as well as those now disclosed and known to exist.  The provisions of any state’s law providing substance that releases shall not extend to claims, demands, injuries, or damages which are known or unsuspected to exist at this time, to the person executing such release, are hereby expressly waived. However the Lawyers & Jurists makes no warranty expressed or implied or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of any information, apparatus, product or process disclosed or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product process or service by trade name, trade mark, manufacturer or otherwise, does not necessarily constitute or imply its endorsement, recommendation or favouring by the Lawyers & Jurists. The views and opinions of the authors expressed in the Web site do not necessarily state or reflect those of the Lawyers & Jurists. Above all, if there is any complaint drop by any independent user to the admin for any contents of this site, the Lawyers & Jurists would remove this immediately from its site.