• Related to home loan

Dear Sir/Madam,

My name is Vikram Singh. My younger brother Devender Singh Chauhan took a home loan from ICICI  bank. He took a loan of 2200000 (22 Lakh) in 2003 against a property (House No. 1179, Sector- 7/D, Faridabad, Haryana). At the time of loan this property is on his name, But in 2007, he transfer this property on my name via Decree. In every department this property is registered on my name now i.e. Vikram Singh. I am the owner of this property since 2007 and even residing in this home from 1995.
Now from last many years he stoped paying the EMI to the bank and because of this my relation with him is also not good. Now from last many years I am paying the EMIs to the bank because the property is mine and if I not paid the EMI to the bank then the bank said that action will be taken against the property.
Now Instead of paying EMIs to the bank I want to close the loan by giving full and final payment to the bank. Earlier I also discussed this problem to many bank employees that as he is not paying the installments then allow me to close the loan by paying the full and final outstanding to the bank and then also return me the property documents deposited in your bank. But the bank says that they can't allow anybody else to close the loan without the authorization letter from the applicant i.e. Devender Singh Chauhan and the only procedure they told me is to get a signed document from i.e. General Power of Attorney of ICICI from Devender Singh to close the loan by me. But the problem is that he is not signing that paper also. 
So, I want a legal advice on this that how can I close the loan and get the property papers from Bank because the property is on my name and I am ready to give the full and final outstanding of the loan amount to the bank. So, please advice me.
Thanking you
Regards,
Vikram Singh
9999038184
Asked 7 years ago in Civil Law

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5 Answers

Since loan has been taken by your brother bank will accept repayment only from brother and hand over original documents to brother

2) for transfer of property in your name bank consent is necessary

3) there is generally a clause in loan agreement that no third party rights can be created without bank consent

4) if property is transferred in your name through court decree forward to bank certified copy of court decree

5) file suit to direct bank to return original documents to you on repayment of loan as property transferred in your name by court orders

Ajay Sethi
Advocate, Mumbai
96808 Answers
7811 Consultations

You would need court orders to get the property papers in your name as bank is refusing to return papers to you on repayment of loan

Ajay Sethi
Advocate, Mumbai
96808 Answers
7811 Consultations

1. you should file a civil suit and deposit all the outstanding amount in the court.

2. you should make bank manager as defendant in the suit.

3. on the basis of transfer deed you are the owner of property so you have right to repay all outstanding dues.

4. court on the basis of that deed pass an order to close the account after receiving all dues and transfer the deed for proper execution to the owner.

5. bank cannot refuse to accept loan amount and also bank is not a proper authority to decide title of the property. court has right to decide title and pass any order in the interest of justice u/s 151 cpc

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

1. Your brother created mortgage in favour of the bank in respect of his property. The transfer of title to you must surely have been preceded by the consent of the bank. A mortgaged property cannot be transferred without the consent of the mortgagee. Now if the consent to transfer the property has been accorded then the bank cannot insist on an authorization letter from the previous owner. The position will be altogether different if the property was transferred by your brother without the consent of the bank.

2. The remedy for you is to file a suit for mandatory injunction against the bank to close the loan through a one time payment.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

First of all the transfer of property to your name is illegal and invalid, especially when there is a subsisting mortgage loan on the property and no NOC was obtained from the lender.

However you can issue a legal notice to your brother demanding the said NOC or consent letter or an authorisation letter.

Failing to respond, you may plan to initiate proper legal action as envisaged in law.

T Kalaiselvan
Advocate, Vellore
87009 Answers
2335 Consultations

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