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Dharmesh Manjeshwar (Advocate/Lawyer)     25 June 2009

Attachment under Securitisation act

Well, I had previously posted that ' A ' had obtained loan from a Bank. He mortgaged sale deed of his land with the Bank but did not give original registered sale deed and gave the Bank only a xerox copy and original registration receipt. Thereafter after few years he sold the land to ' B ' without disclosing the loan/mortgage. The sale deed of ' B ' is registered and all land documents such as 7/12, Index II are in the name of ' B '

If 'A ' defaults in repayments, can the Bank attach the land under the securitisation act ? Now the Bank has brought about an attachment order from the District Magistarte uner the Securitisation Act by giving ' A ' 60 days notice . ' B ' has put in application with the District Magistrate statin that he has legally purchased the said land from ' A ' and sought a Stay Order from the District Magistrate. The position now is that a Stay Order has beeen issued by the DM till further hearings and has also issued notice to the Bank. What are ' A ' s legal remedies now

 

 

 



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 2 Replies

Dharmesh Manjeshwar (Advocate/Lawyer)     25 June 2009

Sorry what are ' B 's legal remedies and not ' A 's. What should B do now ?

 

sunaina (Lawyer)     01 July 2009

Hi,

As far as my knowledge goes Mortgage by deposite of title deed goes along with the land and not with person. When there is loan on proeprty if u purchase it then you will have to pay the loan. Here in this case B will have to pay the loan for having purchased the property, loan is nothing but debt on property.

The Encumbrance Certificate of such property will reflect as to who has taken the loan.  B can claim such loan amount from A.


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