Collateral security - title documents (eg sale deed)
bonojit ukil
(Querist) 27 October 2015
This query is : Resolved
Dear Experts,
Please advice,
1). legal position of a lender, who collects Title document (eg Sale Deed), from a borrower, as a collateral security/ additional security, but not under equitable mortgage for a business loan)
2). legal position of a lender (NBFC),"when the Sale deed is marked by "COURT STAMP", with noting, eg, for BAIL/ or STOOD AS A GUARANTOR (document is collected as collateral security)
P. Venu
(Expert) 28 October 2015
What is your query?
bonojit ukil
(Querist) 28 October 2015
Dear Mr. Venu,
The query relates to auditor, reviewing loan documents of a NBFC (who lend to micro enterprises for working capital);
1). Collecting title documents (sale deeds) as a collateral security, when the sale deed are stamped by court official with noting such as "for Bail/ for security", etc.
The query, by keeping such endorsed sale deeds, whether the NBFC is violating any law of the land (even though the court has first charge on the sale deed), I hope I have tried to explain my query
Rajendra K Goyal
(Expert) 29 October 2015
Subsequent charge can be created on security. Get permission from respective court to have second charge (first being of court).
bonojit ukil
(Querist) 31 October 2015
Sir, please add, in case the lender creates the second charge without seeking permission from court, does this account for any legal violation?
Anirudh
(Expert) 31 October 2015
You are not coming with facts, for reasons best known to you.
When you say that no equitable mortgage is created, then as an Auditor you should know as to what worth these documents are in the hands of the money lender.
I think you are not even aware as to how a second charge is created.
Assuming he creates second charge (whether he would be able to create second charge is different question altogether), how you are concerned as an Auditor?
I think you are putting this question in the guise of an Auditor - in the process showing how hallow you are even as an Auditor!
bonojit ukil
(Querist) 31 October 2015
Dear Experts Mr. Goyal and Mr.Venu and Mr.Anirudh, thanks for sparing your time for your feedback.
bonojit ukil
(Querist) 01 November 2015
Dear Mr.Anirudh, Can I have your mob please
Anirudh
(Expert) 01 November 2015
If you are not comfortable discussing the matter in this thread, then you can send Private Message to me.
bonojit ukil
(Querist) 01 November 2015
I would not know how to send pvt msg, I am from Delhi, my mob is 8826991587, my email is bonojit@yahoo.co.in, please let me know how I can call you if possible.
bonojit ukil
(Querist) 01 November 2015
I would not know how to send pvt msg, I am from Delhi, my mob is 8826991587, my email is bonojit@yahoo.co.in, please let me know how I can call you if possible.
Anirudh
(Expert) 01 November 2015
just click on my name. You will see send PM. Click on that you will get a space to type your message. Then click send.
T. Kalaiselvan, Advocate
(Expert) 01 November 2015
You have repeated the same query n another thread too, you may visit that thread for more answers.
