Mithran Ca 22 June 2023

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The bank held an auction for a property with a reserve price, but the auction was not completed due to a lawsuit. The lawsuit was filed because the auctioned property had a common pathway, and the front portion of the property was auctioned by the bank, while the back portion had no access. Both the front and back portions belonged to brothers. The person who owned the back portion went to the Debt Recovery Tribunal (DRT) court, claiming that the pathway was also theirs, and therefore the bank could not auction the property. The bank won the case, but the person who owned the back portion went to the Session Court. The problem is that the bank cannot decrease the reserve price, and the person who owns the back portion wants access to the pathway. Can you please help me find a solution to this problem?

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P. Venu (Advocate) 22 June 2023

Essentially, it is the Bank's problem. Moreover, it is not proper comment on issues which are sub-judice. The concerned counsel is the best person to seek assistance.

T. Kalaiselvan, Advocate (Advocate) 23 June 2023

If there was a common pathway then the affected person will certainly claim huis rights for easement.

The easement rights of the person owing a property at the backside cannot be deprieved just because the bank has fixed a reserve price, besides the bank cannot sell the property along with the common pathway because the common pathway cannot be owned by the debtor.

If you are a buyer you may keep away from the purchase until the issue is solved.

Mithran Ca 23 June 2023

If the private bank reduces the reserve price during the auction, it may attract more buyers who are interested in purchasing the property. However, in this case, the bank has already taken possession of the front portion of the property, but mistakenly included the common pathway that belongs to the back portion. The bank did not realize that another property was not included in the auction.

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