Moneylender foreclosure procedure
navin
(Querist) 13 August 2013
This query is : Resolved
would like to know the procedure for forecloseure of the mortgage? A person has mortgaged (registered) his land to my father. We would like to foreclose the deal.
Is the SARFAESI Act applicable to a registered private money lender ?
is there any book which provides details of foreclosing a deal?
Dr. Jyothi Vishwanath
(Expert) 13 August 2013
You have to file suit for foreclosure in court. SARFaresi act only covers banks.
prabhakar singh
(Expert) 13 August 2013
YOUR CAUSE IS GOVERNED BY SECTION 67 OF THE TRANSFER OF PROPERTY ACT,WHERE UNDER YOU NEED TO FILE A SUIT IN CIVIL COURT OF ORIGINAL JURISDICTION.
THE SECTION READS BELOW:
"Section 67 in The Transfer Of Property Act, 1882
67. Right to foreclosure or sale.- In the absence of a contract to the contrary, the mortgagee has, at any time after the mortgage- money has become 1[ due] to him, and before a decree has been made for the redemption of the mortgaged property, or the mortgage- money has been paid or deposited as hereinafter provided, a right to obtain from the Court 2[ a decree] that the mortgagor shall be absolutely debarred of his right to redeem the property, or 2[ a decree] that the property be sold. A suit to obtain 2[ a decree] that a mortgagor shall be absolutely debarred of his right to redeem the mortgaged property is called a suit for foreclosure. Nothing in this section shall be deemed--
(a) 3[ to authorize any mortgagee other than a mortgagee by conditional sale or a mortgagee under an anomalous mortgage by the terms of which he is entitled to foreclose, to institute a suit for foreclosure, or an usufructuary mortgagee as such or a mortgagee by conditional sale as such to institute a suit for sale; or]
(b) to authorize a mortgagor who holds the mortgagee' s rights as his trustee or legal representative, and who may sue for a sale of the property, to institute a suit for foreclosure; or
(c) to authorize the mortgagee of a railway, canal or other work in the maintenance of which the public are interested, to institute a suit for foreclosure or sale; or
(d) to authorize a person interested in part only of the mortgage- money to institute a suit relating only to a corresponding part of the mortgaged property, unless the mortgagees have, with the consent of the mortgagor, severed their interests under the mortgage."
FOR BOOK YOU MAY BY A COMMENTARY ON T.P.A. BY MITRA.
Dr. Jyothi Vishwanath
(Expert) 13 August 2013
It is better you consult local lawyer for this. Suits relating to mortgages are too complicated to be discussed. Proceed directly in court.
Rajendra K Goyal
(Expert) 13 August 2013
Contact local lawyer with all documents, SARFAESI Act is only for Banks.
