Legal Question in Banking Law in India

A person made his property registered mortgage to bank and took loan from bank in 2012. After that with out bank knowledge he made registered gift deed to his daughter of same property in 2013. Now his loan was declared NPA and the bank conducted E auction in absence of the party duly following SARFACE act . But the bank didn't made any notice to his daughter before conducting auction. Whether the bank auction is correct with out giving a notice to his daughter?. Is She have any wright over the property/ please kindly answer my question as I had purchased the property from bank with out knowing the fact ( gift deed).


Asked on 1/26/15, 8:08 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

27.01.2015

Dear Sir / Madam,

You should follow the entire chain of documents. The person who registered the mortgage of his property to the Bank in 2012 is liable to intimate to the Bank when he registered the Gift Deed of the property in the name of his daughter in 2013. So the Bank in turn would have included the name of the daughter as the co-borrower of the housing loan, and the Bank could have followed up for recovery of the loan from the borrower(s). You should verify that the title documents of the property are duly registered in the name of the Bank. If yes, the daughter has no legal right or locus standi now to claim the property, especially if she has not cleared and settled the bank loan that her father had availed. If no, the Bank is liable to refund you the amounts paid by you for purchase of the auctioned property with interest.

Regards,

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Answered on 1/26/15, 9:14 pm


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