Legal Question in Banking Law in India

I have brought a industrial land through a registered sale deed in Bangalore.All the Original documents are with me.The was no encumberance on the property. After 6 months we receive notice from the bank saying the EMI's for the property. When we enquired with the bank, they said that this property is held as security for a OD loan taken by the seller.

can you please suggest whether i am at risk in this case. how to deal with this

thanks in advance


Asked on 2/07/11, 5:52 am

1 Answer from Attorneys
Sanjay Kalra Sanjay Kalra & Associates

If the original Title Deeds of the seller are with you as you have said , then it seems then the Seller availed of OD facility from the Bank by executing some simple security documents which cannot have the effect of creating any charge or interest in the property. The OD amount thus can at best be the personal liability of the borrower and you can refute the banks claim and need not pay.

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Answered on 2/07/11, 7:05 am


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