Conveyance deed in favour of auction purchaser under sarfaesi act
Rajesh Kumar
(Querist) 27 July 2013
This query is : Resolved
Sir,
A Industrial plot was allotted to 'X' but the conveyance deed was not executed. The plot was mortgaged with Bank by 'X'. Due to defaulter of loan payment, the plot was auctioned by the Bank under SARFAESI Act, 2002 and the same was purchased by 'Y'. Bank had issued sale certificate in favour of 'Y'. On the basis of sale certificate, 'Y' requested the Authority to transfer the plot in his favour. Now, the question is that Can the Authority directly tranfer and execute the Conveyance Deed in favour of auction purchaser i.e.'Y'
Raj Kumar Makkad
(Expert) 27 July 2013
If the authority had provided its NOC for the loan to X declaring him the owner of the property only then the authority can change the ownership otherwise the disbursement of loan, further auction and issuance of sale-certificate thereon is illegal.
