The status quo order is only regarding status of property .you are successful bidder in the auction 

2) it does not bar auction purchaser from making balance payment .only sale certificate would not be issued 

3) you are not committing any contempt of court by making payment 

The amount has to be deposited by you within a fixed period so that your bona fides can be proved ie that you are serious and interested in buying the property. The hearing shall resume after 90 days in DRAT. You may approach the HC in the meantime so that the bank may agree to sell you the property in case the DRAT case is dismissed.

You should approach the HC so that the bank may not unnecessarily harass you into depositing the amount when the future of the property is still not clear. The bank is only harassing you so that you give the money.

Bank Can Forfeit Entire 25% Deposit & Not Just The Extent Of Loss Due To Default By Auction Purchaser

In a significant verdict, the Supreme Court held that the entire earnest money deposited by an auction purchaser would be forfeited as per Rule 9(5) of the Security Interest (Enforcement) Rules, 2002 (SARFAESI Rules) on the failure to deposit the remaining amount within the stipulated period.

This being the present law, if you want to safeguard your interests, you may make the balance payment within the stipulated time to avoid forfeiture of the amount you already paid.

- Under the SARFAESI act, at the time of the auction, the bank has either symbolic possession or physical possession of the property. 

- Further, the Jammu and Kashmir and Ladakh High Court ruled that a Bank can auction the property even with encumbrances attached to property under the SARFAESI Act but it is incumbent upon the Bank to disclose the encumbrances and litigations attached to the property to all the persons who want to participate in the same and to the successful bidder.

- Further , Rule 9(9) of the Security Interest (Enforcement) Rules, 2002, states that the authorized officer had to deliver the property to the purchaser free from encumbrances.

- Since, you have already deposited 25% , then you should follow the instruction of the bank to pay the remaining amount within 90 days , otherwise your paid amount can be forfeited due to delay in payment. 

- You should comply the bank said letter and not the status quo order passed by the court. 

The money you have to deposit with the bank can wait till the hearing in the DRAT is completed. For this obtain a stay from either the DRAT by filing an application or by filing a petition in the HC.

1. Since there is order of status quo Bank can not issue Sale Certificate just now but you will have to pay the remaining 75% within time.

2. After publishing of sale notice the auction sale can not be set aside unless the Bank did not follow the sue process of law likely compliance of Rule 8(1), 8(2) of the Security Interest Rules.

3. If do not pay the remaining amount the earnest money may be forfeited by Bank. 

DRAT is the appellate court of DRT. 

No doubt bank cannot alienate the property during the pendency of the stay order. 

If it is issues the sale letter / certificate then it can be considered as alienation of property which would become contempt of court order.

However payment towards the balance sale consideration amount would not come under that definition.

Besides the reasons you state that you can claim exemption citing the court order may not be acceptable by the bank, instead after they take action to forfeit the advance amount, you may have to run for this also from court to court. 

You may take a wise decision 

Bank cannot sell the property or create third party rights 

2) you are paying balance amount as per terms of auction 

3) if you don’t deposit balance amount bank will forfeit your deposit 

4) request bank to seek clarification  from DRAT 

Since the Court's Status Quo order supercedes the Bank's letter/instructions, you can use the Court's Status Quo order as a basis to defend your rights on the property thereby preventing the Bank from forfeiting your initial deposit of 25%.

When the case was filed ? Before auction or after action ?

And did bank was aware of the case at the time of action ?

-DART full form is DEBTS RECOVERY APPELLATE TRIBUNALS.

- You can move an application before the same DART for instructing the bank , not to receive the balance amount before setting aside the Status quo order . 

The bank's demand is arbitrary 

There is a DRAT status quo order 

Meaning the bank cannot take any steps in furtherance of the auction sale 

Requiring the auction purchaser to pay balance 75% is a step in furtherance of the auction sale 

So the bank is in direct contempt of the court's status quo order 

I would advise that till the dispute is resolved, you deposit the balance 75% with the DRAT rather than paying to the bank 

1. The DRAT order is applicable on all the parties. Were you a party in the DRAT Appeal filed by the Borrower?

2. If yes, then write to the Bank stating that you are constrained to take any further step as per the said Status Quo order.

3. Even if you are not a party before the DRAT, the Bank can not take the amount from you since in that case they will disregard the said Status Quo order.

4. Please write to the Bank whether they still want the balance amount despite the DRAT order and save all such correspondences for your future use.

5. It might be prudent on your part to file an intervening application before the DRAT as an intervenor (if you are not a party before the DRAT) and pray  for direction upon the Bank to refrain from demanding the balance amount when there is already a status quo order on them. 

6. You can file a Put Up application for getting your application heard by the Chairman of DRAT.

1. If you are not a party in the case filed before DRAT, then it will be argued that the said Status Quo order is in connection with the steps to be taken by the Bank and the Borrower and you are not a party in the matter and also that you shall have to comply with the SARFAESI Act,2002 for buying the said property in auction.

2.It will be prudent on your part to approach DRAT filing an intervening application and take steps as advised in my earlier post.

Dear Querist,

You should read the terms and conditions of the Auction which are contract between you and the bank, if there is any condition that you will have to pay the remaining balance i.e., 75% within 90 days from the initial purchase price whatever the situation will, than you will have to pay the remaining amount to bank and if the borrower win the case and settled the matter with the bank than you may be entitled to get interest from the bank subject to the terms and conditions of the bank's contract.

Feel Free to call

Status qiuo is following what was the status of both the parties during passing of that order 

Dear client