Legal Question in Civil Rights Law in India
Our property was having a long term dispute for more than 25 years and after that we won the case and the final court order of ownership was given in my grandmother's name and subsequently after the death of my grandmother the property was inherited by my father and my Uncle. During expansion of our business my father took a Bank Loan. Our property was given mortgaged in the Loan. Due to absence of Will, the property was registered in the name of Bank by both My father & my uncle for Loan purpose through an IGR in the name of Bank. Now the Loan was paid back and bank issued a NOC but the problem is that Bank lost the original IGR copy which was kept in the bank record and upon production of original IGR copy, the registration in the name of the bank can be transferred in my fathers name. The bank regret for the mistake and is advising us to issue a certificate of clearance of loan and handover of property to the borrower name and the borrower can make a gift deed of this property to his spouse. Please advice is it legal procedure of transferring property as suggested by bank? Also if the property transfer will it be transferred solely in the name of borrower ( i.e My Father ) or will be transferred in both My father & Uncle name? ( My uncle only sign during the mortagage registration procedure in the name of bank, Original borrower is my father ). If bank transfer the property can it be make gift deed in my mothers name ? Is there will be any problem in clearance of tax payment and mutation? Please suggest or reply if you have any querries. Thanks
2 Answers from Attorneys
04.04.2014
Dear Sir / Madam,
A mortgage of property to the bank does not involve transfer of the title of the property in the name of the bank, especially when the loan has been cleared. Losing any documents is the sole responsibility of the bank for which the bank has to compensate the property owners for the loss, and transfer the title of the property in the name of the original title holders i,e in the joint names of your father and your uncle. A bank cannot make a Gift Deed.
Regards,
-- Bank cannot create gift deed.
--Bank is liable for default on their part. They cannot escape their liability.
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