When there are multiple creditors (including secured and unsecured) and the property is sold, then the priority of repayment to the creditors is decided by the relevant legal provisions.
Ideally speaking, when the bank wanted to auction the assets of the opposite party, you should have gone to the appropriate court or tribunal seeking stay over the same or ensuring that your interests were protected. When such huge interests are involved, you cannot afford to be not aware of the developments. You have to be alert. Law presumes you to be alert to the situation and the developments.
In the given situation, if the bank has already sold the assets, you’ll have to get the relevant legal provisions and documents examined. Check whether your dues had a higher priority over the bank’s dues. Consult some local lawyer by showing him all relevant documents, etc., as your stakes are not meagre. And, if necessary, after consulting with your lawyer, you may have to approach the appropriate court / tribunal for seeking remedy. An accurate and correct guidance in such matter can be given only by a lawyer who has gone through all relevant documents and legal provisions that may be applicable in your case.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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