Legal Question in Banking Law in
our bank given loan on property just power of attory ,borrower shiffted abroad after given again power of attorny and other attorny holder sale this property , we obtained recovary certificate U/s 101 msc act 1960, in this stage what can we do ?
2 Answers from Attorneys
the bank can attach the properties of borrower and the property he holds as attorney because the property belongs legally to the principal. There is one judgment of the supreme court (LIC Case) where in the SC held that power of attorney coupled with consideration to the owner cannot revert back to the owner and for all practical purposes the property would be the property of agent. This can be a ray of hope for you.
it is the fault of bank for giving loan on just power of attorney. the loan transaction is void in the absence of consent of principal in writing.
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