1) Same Bank has sanctioned loan to corporate A and B. B has given corporate guarantee for loan given to A.
2) Both the accounts have become NPA and bank has filed suit for recovery against both the companies before DRT.
3) Bank has also proceeded in SARFAESI against property of B mortgaged to it and valued at around Rs. 200 lakh as against B's outstanding of around Rs. 80 lakh.
4) B is afraid that in case he repays the loan, bank will not release the papers and will get injuction / attachment before judgement in Original Application filed before DRT for recovery of dues of A as security available in later case is not enough. Bank is already playing adamant and not giving account statement etc.
Querry / Discussions sought: Can bank as a matter of right, refuse handing over title documents (to appropriate property for other loan). Suppose B wishes to sell to another person for a lesser price than reserve price, can Bank raise any objection, if it has not already attached it?. More so considering the fact that B is entitled to property rights as also redemption thereof under law.
Discussions welcome.
