Legal Question in Real Estate Law in India

In the sale agreement - As per the specific performance clause, the buyer is required to pay the full & final amount to enable the seller to handover the possession of the flat. The Flat is located in Mumbai.

Buyer took loan from Bank - part payment of which was done to seller, and the registry was done on the above agreement. In lieu of the registry , when the Bank released the remaining payment - the seller didn't take that amount and verbally cancelled the deal.

- Now, seller is not returning the buyer's money (part payment made by buyer, loaned through Bank)

- As buyer has'nt got the Flat, Buyer has stopped paying the EMI to bank and has requested Bank to take possession of the said flat.

Question:

1. Who owns the Flat, currently?

2. Is the Bank legally empowered to act on the request (SARFAESI act), and attach the Flat?

Many Thanks for your advice in advance.


Asked on 10/01/09, 11:21 pm

2 Answers from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

1. The person who was owner before agreement with purchaser continues to be owner.

2. If the flat has been mortgaged or charged by owner of the flat in favour of the bank, then bank can take action.

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Answered on 10/02/09, 1:03 am
KAMAL GROVER

you can file the case against the builder and till then stop payment. Coz till the builder will not allot you any flat till then bank cannot take any action but bank will file the case against you.

REGARDS

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Answered on 10/04/09, 10:41 am


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