Auction purchaser
Kiran
(Querist) 13 April 2012
This query is : Resolved
Respected Sirs,
Myself is planning to purchase a flat from bank in auction under sarfaesi act. Currently the flat is under possession of lawful tenant , they have paid security deposit of around 25 lakhs to the borrower prior to mortgaged was created.The borrower was fraud later he mortgaged the flat and now absconding.
How get possession from that Tenant....?
V R SHROFF
(Expert) 13 April 2012
Tenant will never vacate, nor you will get any rent, as he will go for Standard rent & return extra deposit. This is managed legal fraud....
Do not purchase.
adv. rajeev ( rajoo )
(Expert) 13 April 2012
Even if you purchased the property you will under trouble. You will have to take legal action against the tenents so it is better to avoid it.
Kiran
(Querist) 13 April 2012
Respected Sirs,
Will I need to pay rs. 25lakhs security deposit to the tenants. So that they vacate the flat.
bhagwat patil
(Expert) 13 April 2012
It is a trap as SHROFF SIr pointed out..once the bank get theirvoutstanding loan they will not cooperate you for possession.you will ger only title.
prabhakar singh
(Expert) 14 April 2012
Bank has right to take over possession and charge of property through DM by evicting the tenant as tenants right to possession are not protected due to provisions of SARFAESI Act which overrides all tenancy protection Act.
But you should buy only when Bank has taken over possession and does have certificate of possession else you would be buying a mess.
prabhakar singh
(Expert) 14 April 2012
The point raised by me is however still unsettled and courts are divided in their opinion.Due to several conflicting decisions THE HIGH COURT OF KERALA AT ERNAKULAM decided to refer the point for decision by a FULL BENCH in case below
K.A.Nazeer vs The State Bank Of Travancore
c.p.s. ramachary
(Expert) 16 April 2012
There is no difficulty in purchasing the tenant occupied house in public auction. Even a bona fide tenant can be evicted from the premises either under the Rent Control Act or under Transfer of property Act. But you have to wait patiently until termination of legal proceedings pending either before DRT or DRAT or High Court or Supreme court. If there are no proceedings in any of the above tribunals or the above courts, you have insist for registration of sale certificate by the bank
c.p.s. ramachary
(Expert) 16 April 2012
There is no difficulty in purchasing the tenant occupied house in public auction. Even a bona fide tenant can be evicted from the premises either under the Rent Control Act or under Transfer of property Act. But you have to wait patiently until termination of all the legal proceedings pending either before DRT or DRAT or High Court or Supreme court. If there are no proceedings in any of the above tribunals or the above courts, you may purchase the property under registered sale certificate and the initiate eviction proceedings. If the tenant is not bona fide tenant you have to pursue the bank for taking assistance of Chief Metropolitan/District Magistrate under Sec.14 of the SARFAESI Act and eject such tenant
Kiran
(Querist) 16 April 2012
Respected Sirs,
Thanks a lot for ur valuable reply.
@ Mr.Ramachary
Will I need to pay rs. 25lakhs security deposit to the tenants because the tenants are asking for security deposit which they have paid to the Landlord/Borrower then only they will vacate the flat.
c.p.s. ramachary
(Expert) 16 April 2012
You need not pay single paise to the tenant. It is for the tenant to work out his remedy against his land lord for recovery of his advance of Rs.25 lakhs.
