Sarfaesi act
Goapl Garg
(Querist) 05 December 2016
This query is : Resolved
I along with my two brothers stay in a flat measuring 3630 sft with three car parkings.We three brothers have purchased vide three separtae conveyance deeds for 1210 sft each with one car parkings.The flat is thus owned by three brothers but it is one flat.The conveyance deeds are under collateral with a Bank towards credit facility obtained by our sister"s family.The account has become NPA and we are facing bank"s action for taking possession our flat.we have executed separte loan agreements and have guaranteed upto the value of the flat only and no personal or other guarntee.Though our relative have been assuring us of getting them discharged but it is not happening and we have lost our peace.There is also differnce of opinions among three brothers about seeking release og the property by settling with the bank indepandtly.But I am not able to survive the day to day problem and our all other activities are getting affected.Can I separately approach the Bank for settling for my separate Conveyance Deed independtly and shall the Bank will be ready for that ?My other two brother do not object my personal action for my conveyance deed.I can not have any kind of tussel with my sister"s family as they are themselves is in trouble for genuine reason.what should I do ?
adv.bharat @ PUNE
(Expert) 06 December 2016
All parties are jointly and severally responsible for repayment of it. Hence u as individual can proceed for settlement. If u settle full amount then only it is possible.
Kumar Doab
(Expert) 06 December 2016
The bank is concerned with payment of its good money lent by it.
Speak in confidence to bank manager and your own counsel.
K.K.Ganguly
(Expert) 06 December 2016
1. There are three nos. conveyance deeds for three flats which have been mortgaged with a bank for creating security interest for the loan availed by your sister's family who are not honouring their repayment liabilities.
2. Under the said circumstances, what will you do by approaching the Bank separately?
3. The Bank will release the mortgage of all the properties when the outstanding dues are settled in full.
4. Ask your sister's family to negotiate with the Bank to make an one time settlement for the dues to save your properties otherwise the Bank will initiate SARFAESI Action to take possession of all the flats for selling the same to recover the outstanding dues of the Borrower.
Goapl Garg
(Querist) 06 December 2016
Sir(s)
The Case is little different.
In the Sanction Letter it is explicitly written that our(of three brothers"s) gurantee is limited to the value of our flat.The Bank has carried out valuation of the 03 Flats(i.e. One Flat bought by three brothers individually vide Individual Conveyance)The present Fair Market Value has been reported as Rs.2.10 Cr for the Flat(owned by three brothers vide three conveyance deed).My sister"s family is not in position to square up the liability presently as they have lost money in genuine dealings but owing to market trends.We are not in position to expect much from them as of now.
Under these circumstances please advise as to Can I offer the Bank Individually to release my Conveyance Deed in exchange of the proportinate Fair Mraker Value(with possible negotiations) and shall the Bank be able to release my one deeed individually as in any case my liability is to the extent of valur of my flat/deed.
Please advise considering these facts.
Regards
adv.bharat @ PUNE
(Expert) 08 December 2016
As there is only one conveyance bank can release your share only. U need to clarify all the due then only it is possible.
Rajendra K Goyal
(Expert) 08 December 2016
It is doubtful, the Bank would agree to your proposal.
Language of sanction letter is helpful, but language of executed guarantee agreement also need to be referred.
whether the Bank is private or Public sector?
Please obtain copy of all loan documents and discuss with your lawyer.
Kumar Doab
(Expert) 08 December 2016
Obtain authenticated copies of all documents as advised by Mr. Goyal.
K.K.Ganguly
(Expert) 08 December 2016
1. There are actually three flats as mentioned by you i.e.with "three separtae conveyance deeds for 1210 sft each with one car parkings".
2. Your guarantee is limited to the value of the flat.
3. The valuation will be at market rate and will certainly be to the higher side than the price at which one can sell it off.
4. Best course of action for you shall be to allow the Bank to sell it off by initiating SARFAESI Proceeding and then buy it at the reserve price which the Bank's valuer fixes at a considerably lower level for selling it off easily.
5. Alternatively you can certainly propose the Bank to get your title deed as well as mortgage released after paying the market value of the flat.
6. Make sure you pay the DD for the said settlement across the table after collecting the original Title Deed and original Guarantee agreement along with the letter releasing your guarantee.
Rajendra K Goyal
(Expert) 09 December 2016
You can take a chance by putting the proposal to Bank, possibly some officer of positive thinking may take favorable action.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 09 December 2016
After legal agreements are executed the sanction letter is less important and no value.
all of you are jointly and severally liable., so one person can not get out unless you pay whole amount.
There are other legal ways which can be spelt after going through the mortgage deed which may have many lapses.
Rajendra K Goyal
(Expert) 10 December 2016
Again repeated to obtain copy of all loan documents and discuss with your lawyer.
Though chances are negligible, yet put proposal before the Bank.
Goapl Garg
(Querist) 10 December 2016
Respected Sir(s),
Thanks for your valuable suggestions.
See the Bank accepts categorically that we three brothers are liable to the extent of the Market Value of our Flat(three flats bought vide three separate conveyance deed)
Bank has written us a joint letter that we can get release by paying the Market Value of the Flat(three) which has been assessed by their two valuer as Rs.3.20 Cr.The NPA is for 14+ Cr, but it is admitted by Bank that we three brothers are liable for Rs only MV of the Flat(three).
The Question here is that we are three brothers, we bought a Big Flat vide three separate conveyance deed of equal area.We three brothers executed separate gurantee documents for our individual flat.Bank refers all us as three separate gurantor.As we stay in One big flat jointly, the Bank write to us vide one letter/notice but as 01/02/03 at same address.
When Bank says to get release by paying Rs 3.20 cr for the flat bought by three different persons vide three different conveyance, then
1. Can me,(being one of the individual flat owner of individual 1/3 area and an individual gurantor) ask the Bank to release my flat- its conveyance deed for 1/3 amount of MV of the alleged flat(but three)?
Can the Bank deny me such proposal on the ground that they would only release all three deeds at a time whereas two owners vide two separate deeds are not interested and one is interested.
Its really a little odd case for Bank also but I want to get release from this situation as the NPA is surely shall face proceedings which I am not able to sustain.
Should I offer Bank to release my deed indivually and ask for a quote so the Bank"s mind would come out.Can Bank deny such release on any lawfull ground?
Kumar Doab
(Expert) 10 December 2016
You have the right to approach the bank with your fair offer to pay upto your liability.
Rajendra K Goyal
(Expert) 10 December 2016
You said:
Can me,(being one of the individual flat owner of individual 1/3 area and an individual gurantor) ask the Bank to release my flat- its conveyance deed for 1/3 amount of MV of the alleged flat(but three)?
Reply:
Only Bank can decide and tell whether it would accept money from individual and release his share. However, if Bank has made such offer it is better to grab the chance. First get the offer in writing , in clear terms and proceed only after getting the proposal scrutinized by your lawyer.
Rajendra K Goyal
(Expert) 10 December 2016
You said:
Can the Bank deny me such proposal on the ground that they would only release all three deeds at a time whereas two owners vide two separate deeds are not interested and one is interested.
Reply:
Answer totally depend on the Bank.
Rajendra K Goyal
(Expert) 10 December 2016
You said:
Its really a little odd case for Bank also but I want to get release from this situation as the NPA is surely shall face proceedings which I am not able to sustain.
Reply:
You are right, but totally depend on the Bank.
You said:
Should I offer Bank to release my deed indivually and ask for a quote so the Bank"s mind would come out. Can Bank deny such release on any lawfull ground?
Reply:
If you want to request the Bank, offer 1/3rd share of offer, acceptance depend on the Bank.
Rajendra K Goyal
(Expert) 10 December 2016
Please refer the offer letter if received from bank and be sure that Bank would not proceed against you on the basis of any other document / agreement if you pay back your share and get your title released.
Kumar Doab
(Expert) 10 December 2016
Obtain authenticated copies of all documents as already, advised.
K.K.Ganguly
(Expert) 11 December 2016
1. As per the document and also as view by the Bank, there are three nos. of flats for each of the three brothers which have been mortgaged with the said lending Bank by depositing the three nos. title Deeds.
2. Your guarantee is limited to the value of the individual flats.
3. You can certainly approach the Bank and demand to release your guarantee and also mortgage of your flat on receiving payment of the market value of your particular flat.
4. If the Bank refuses to accept your proposal being ignorant of the law, you can approach the Banking Ombudsman complaining against to the said refusal by the Bank to receive your guaranteed payment to release your guarantee and mortgage.
Kumar Doab
(Expert) 11 December 2016
You have the right to approach ( under proper acknowledgment of course) the bank with your fair offer to pay upto your liability, as per documents, on record.
Let Bank state whatever it wants.
You may succeed to wriggle out of situation.
Rajendra K Goyal
(Expert) 13 December 2016
If the Bank give you clear understanding that it would release the portion / your property, if you pay market value, you may proceed.
You have not stated whether the Bank is in private sector or of public sector.
