Legal Question in Banking Law in India

Notice of e-auction dated 5-12-2013 Aditya Prakash Constructions (p) Ltd., one of the director T Vijayalakshmi� property Under Equitable mortgage MIG-121 given for sale. The property subject to the following encumbrances known to the bank is (NIL) property sold on as is where basis and what it is basis 2floors building on 289 sq. yards. At the time of loan given it is only Plot not house. Purchaser shall be liable to pay Local taxes and other statuatory dues and registration charges and stamp duty. Inspection of the property on 28-12-13 orally told by recovery officer, possession will be vacated before final payment, it is the duty of the bank to give a peaceful possession.

On 8-1-2014 e-auction, I am the highest bidder sale confirmed on phone and I was asked to pay balance 25% of the payment. Paid on the same day insisted to send Xerox copies of documents to verify with the lawyer. In the mean time obtained EC and certified copies of sale deed from registration office and found in order. Finally on 23-1-2014 approached bank to pay final payment to get sale certificate and registration process. I have not paid the 75% on due date due to the below reasons.

Understand still the possession is with borrower and DRT SA No.160/13 is pending order payment of 10% of notice amount and another payment of 10% 15days there after. Borrower paid 1st instalment and failed to pay 2nd instalment and approached high court WP/45/2014 to with held the auction which is going to held on 8-1-2014. High court ordered to pay 20lacs before auction date to withheld the auction. But borrower failed to pay the amount, bank proceeded for auction. On 21/1/14 High court dismissed as infractuous. Bank approached CRI..MP/2959/13 for getting the vacant possession. With the help of court Ameen tried to vacate the premises on 28-1-2014 but failed to get the possession. Bank is trying to get the possession with the help of court and police. In the mean time only one tenant at the building is sent notice/summons SA26/14 to the borrower, bank and also to me. All these cases I was known only after 22-1-2014.

Borrower taken loan by pledging plot and constructed building with out the knowledge of bank and municipal building plan approvals. Muncipal authorities are charging more property tax for unauthorized construction. Bank sold the 2floors building without basic municipal plan approvals and loan given to only plot. Bank possession notice on 11-6-2013 and notice of e-auction on 5-12-2013. Process is already taken time more than 7months and still disputes with court are pending.

Bank insisting me to give simple letter requesting to extend the balance payment schedule, otherwise I may loose my 25% payment which I paid on 6th and 8th January, 2014. Please advice on this.

2 Answers from Attorneys

Related Questions & Answers

More Banking Law questions and answers in India

Looking for something else?