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Anil (partner)     16 July 2012

Attachment of sold property

A had given personal guarantee as a trustee of the trust that had mortgaged its property to the bank. The bank sold the property and enforced balance dues on A. A and his wife B owned a joint property but A sold his shares to B. And B after becoming the sole owner sold the property to x. 

Can bank attach that property now owned by x who has no connection with A or B. Also B is in now way connected with dues or guarantees given by A.

Can banks attach properties which were once jointly owned by A. Banks gave notice much later after sale.



Learning

 2 Replies

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com))     16 July 2012

Any transfer that is colourable and is meant or motivated to defeat the claims of a creditor is voidable at the option of the creditor, in simple words - the bank can trace your half share in the property for satisfaction of their claims.

surjit singh (Assistant)     16 July 2012

Mr Bharat is right, the transfer is only a colourable transfer.

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