Old mortgage loan shows on EC
Geo Andrews
(Querist) 02 March 2010
This query is : Resolved
I brought a property in 2003 using a bank loan from Citybank and then moved the balance transfer to ABN Amro. During these transactions I did’t have any issues then now when I’m trying to move the BT to another bank am running into few issues as below.
The bank asked for the EC’s right from 1986 when the actual property was allocated to the previous owner. Now that when I’m checking the EC I find the previous owner had mortgaged the property sometime in 1989, he had also taken about 13.5 lacs of loan of which I’m able to track repayment for only 7.5 lacs. Then not able to track for the remaining amount. What are the legal implications for all this keeping in mind these questions.
1) The property was brought in 2003 : its been close to 7 yrs now.
2) I find the property was mortgaged in 1989, the last payment was in 2003 (as per EC), this bank has hence gone bust and was taken over by another bank in Feb 26, 2007
3) I have all the original documents : All deposited with ABN AMRO (the bank with which I have my current bank loan)
4) No bank has approached me so far for any dues
5) EC has entries marked as DTD for about 5.5 lacs that do not have any receipt (Payment).
6) The latest EC, I took from BDA (Bangalore Development authority) as of 1st march 2010 , has the last entry marked as sale transferring the property to my name(2003).
Questions
1) Now that it’s been close to 7 yrs will the bank get back to me to make the payment? I understand it’s hard to make comments here, would help with few suggestions, will help if you can explain in plain English like the usual bank procedure.
2) Since the loan was taken by the previous owner, the chances are if there was a case registered it would be against the previous owner, then would not I have heard about this in last 7 years. I understand it’s tough to answer this too, but would help if you can give few suggestions.
3) Since I have not been notified so far can I use the 3 yrs timeframe window to bail myself. This is again assuming that the bank has not filed any case against the previous owner.
4) Since the entries in EC say DTD, should not the lending bank be having the original documents and its apparent that they don’t and I have, can I use this clause to fight the case if at all they come back on this issue?
5) Would it be wise to go back to the bank and inquire if there are any balance to be paid?.
Thanks a lot for answering the questions.
Raj Kumar Makkad
(Expert) 03 March 2010
1. As the property is prior mortgaged with bank, it can approach you to make payment but the law of limitation for the recovery matters is 3 years from the date of acknowledgment of the loan amount which in the given quarry has not been made since last 7 years so bank legally cannot recover any amount from you.
2. The reply has already been given above,
3. Yes. You can very well use this.
4. Yes. You can use those original documents in your defense.
5. No. This is not desired.
Uma parameswaran
(Expert) 05 March 2010
The last payment (part payment) was made on 2003.So the limitation period starts from 2003.Limitation period is 12 years.It is better to consult with the mortgager/seller and persue him to repay the loan .If he reluctant to pay take legal procedings against him .Otherwise it will be a lose for you.
