Sale of equitable mortgage land

You may send a Letter to the Bank asking full details of the loan and also get copies of the Property Documents pledged with them by the alleged borrower and compare your documents in possession with those, and ask your vendor about the suppression of loan and make them liable otherwise you would give cheating complaint against him. As the Sale Deed does not state the loan matter in it, what a prudent man can verify, you would have done to subjectively satisfy yourself about the title to the property and encumbrances, etc., based upon records. Hence your vendor can be charged for cheating you as well as the Bank.

The title deeds would have been deposited with the bank. So you should be able to show that you'd made public notice regards title deeds.

Of course the vendor will be held for cheating you and bank and any of other properties of his may be attached (if available).

As regards your claim over property as against the bank court will rely on who had taken maximum precautions w.r.t  the transfer of property.

You did not mention as to whethere your vendor had delivered origninal documetns to you or not.  If  the property is mortgaged, unless it is cleared, it continues to be under mortgage.  Further, your vendor had cheated you and in such regard you can take steps against him.  Sale in your favour will not effect mortgage in favour of bank.  Both of you (your vendorar and your self ) are liable to the bank till the dues are cleared.      

Thanks Rao, Rajasuriya and Aarvind.

Mrs. Kalpna Tiwari-Advocate,

you must have given a public notice at the time of obtaining  a Title Clearance Certifiate."Buyer be aware". if the link document( Original) is handed over to you by the seller, then you are protected. if it is a fraoud , the seller may have executted other fake sale deeds also. it all depends on the factual position and the care you have taken while purchaing the land. May help further for charitable cause

hi first of all u have to c that whether that mortgage deed is registered or not. second as mention by u that it is not on the revenue record then u r title is absolutly free from the defect as u have publish the notice in local news paper regardign purchse and no objection is their . therefoer its not on ur fault. Regards,   

(1) This Act will certainly apply in your case, since the land is not put to cultivation now except it is described as agricultural land on record even today. If everyone takes this defence that their land is shown as agricultural land in Revenue Records, our Banks will be in doldrums and the object of the Act will be defeated. The primary object of the Act is to exclude the agriculturists and wet lands from its purview.

(2) Further, you have clearly raised a School building site on the land, which is explicitly and admittedly shows that the land is not wet land now and it was already converted and the land has lost its agricultural identity now.

(3) Coming to your case, whether or not this Act would apply, the Bank is empowered to recover the money by some legal means i.e., institution of DRT proceedings or suit under CPC.

(4) But the only consolation for you is that the previous sale from A to B since not reflected in the Encumbrance Certificate (E.C.). You should find out why the entry was not reflected in the E.C., whether there was any change in the Survey Nos. or the descripttion, etc.,

(5) If everything is alright as far as the descripttion is concerned, then you were misled by it by the Registration Dept. and you may take action against the Dept. and ask them to make good the loss suffered by you.

(6) You have to now take action against A for suppression of the fact of previous sale to B. In any event, unless the previous sale is cancelled at the instance of A/B, B is the absolute owner of the land and not yourself. Hence you may act tactfully with the parties concerned.

this is with reference to you point no. 4 , Just because bank had deposited the title deed as equitable mortgage and bank did not inform the registrar that's why it was not reflected in revnure record that this land was mortgaged with bank. If bank registered this equitable mortgage with bank we should have known it through record and would not buy this land. Are bank is free from his liability to inform or registered mortgage.

It was agriculture land at the time bank mortgaged it. it was in 1994 now in 2010 we converted it into school.

Is there any relief from law of limitation.

I myself is victim of this fraud or our neglegence whatever you can say, please advise me how to get through it, it is not possible for me to again paid current value of land to bank, please suggest me way as my lawyer

thanks and warm regard