Dear Experts,
Our family owns a joint property which is commercial in nature. We undertook construction loan from a private bank in 2006 against the "entire" property as security and have regularly paid EMIs until 2010. Due to some unforeseen losses & illegal occupation in the property, we had come to an agreement with the bank that we shall sell partial stake of our family in the property and service the loan completely. To this, the bank has agreed and had even provided One Time Settlement forms with payment tenure.
We then registered sales deeds for "partial stake" in the property to a local resident (buyer) in 2010. However, the illegal occupants troubled both our family & as well the buyer and have not allowed any of us into the property since several years. Please note that we are yet to get the sales proceeds from the buyer as he claims that he is unable to gain possession to the property and shall repay the amount once he gets possession.
Meanwhile, our banker, who had waited long enough, initiated SARFESI proceedings under section 13(2) & 13(4) against us. Under these circumstances, we would like to know the answers for some questions:
1. Which part of the property the Bank is supposed to take physical possession?
2. If the situation worsens and the Bank opts to Auction the property, can it auction the complete property? or only the residual portion that is still owned by our family?
3. Shall the Bank "cancel" all Encumbrances on the property?
Thanks to clarify.
