Payment after auction of the loan property
Querist :
Anonymous
(Querist) 09 December 2011
This query is : Resolved
If person taken loan from private finance not able to repay and person is abscand so the private finance is recovery amount through auction of the property if loan 5 lakh property is sell to 10 lakh then remaining amount what they suppose to do?That amount is in the name of loan taker or nominee?who is eligible to take the money? how to take the money?
Devajyoti Barman
(Expert) 09 December 2011
How is the loan atken, by making any mortgage?
How is the auction going on, with the order of Court or DRT?
The general rule is the creditor is bound to return the balance amount to the owner of the property/borrower or on his death his legal heirs.
Raj Kumar Makkad
(Expert) 09 December 2011
As the matter pertains to private financer and court might have been got invoked therein so it is better to deposit the balance amount of auction in the court itself so that the loanee or any other nominated person on his behalf may obtain it.
Raj Kumar Makkad
(Expert) 09 December 2011
Even otherwise also, the doors of the court can be knocked seeking deposit of such amount on behalf of the financer.
prabhakar singh
(Expert) 09 December 2011
Yes! with out any objection to split posts by Mr.Makkad,i find in agreement with him.
This all would be possible through court whose jurisdiction might have been already invoked for or may be still invoked.
But one thing should be clear that surplus money legally belongs to principal debtor.
[as you say him absconder is a lose word to use here,is there any criminal case in which court has declared him absconder,because such a situation will affect my answer.]
Otherwise he is a man left without address who could be treated dead only when from a FIR lodged in this regard he does notappear for continuous 07 years.Then he may be presumed to have been died and his legal heirs can claim his all belongings,movable and immovable.
Guest
(Expert) 09 December 2011
The balance of the sale proceeds of the property, after adjustment of loan dues, blongs to the owner of the property. Only he can claim the same from the finance company, unless the original owner, not the nominee, unless proved dead or deemed to have died having remained untraceable for more than 7 years.
Querist :
Anonymous
(Querist) 01 February 2012
Thanks for reply, ok now how to know whether the remaining amount in the court or the amount is in the finance company? How to approch to take the remainig money.
The person is married 8 years back and having 2 kids now he is abscond because he had a affair and he doesnt want to leave the affair but first wife is not accepting that is the reason for that person to leave the place, now he staying with affair and he is now having a kid with second wife what is next procedure for divorce of first wife? what case they can put on that person?
