• Sarfaesi act

I am pursuing a property which was formerly purchased from the bank auction under the SARFAESI Act. Now the person who had auctioned the property, the bank while issuing the Sale Certificate had made a typographical error on mentioning the survey number, hence they weren't able to register the said document . Finally after heavy pressure and perusal after six years they are issuing an addendum stating the mistake and its rectification. I am planning to purchase the same, but later found out that the sale certificate needs to be registered within 120 days of its issuance, since the bank did least to help now is the addendum good enough to be registered along with the sale certificate or not....??? if yes would there be any future complications arising which may or can damage our title due to the following complications. The bank had handed over the possession six years back itself and also they had accepted their mistake but eventually i am planning to invest on the said property to built up a factory and my investment would be more than 4 times of the property and i don't want to land up any complications arising in future pertain to the same. Please guide me not th above matter.
Asked 3 years ago in Property Law from Bangalore, Karnataka
1) sale deed needs to be registered within period of 4 months 

2) further period of 4 months is granted on payment of penalty . 

3) in your case period of 6 years have passed. no registration can be done after period of 6 years . 

4) unless sale deed is registered you dont have clear and marketable title to property . 

5) If a deed of transfer, which is compulsorily registerable, is not registered it will not be admissible in evidence  under section 49 of registration act 

6) dont purchase the property
Ajay Sethi
Advocate, Mumbai
45435 Answers
2669 Consultations

5.0 on 5.0

Well sale certificate without registration within the statutory period of 120 days has no value.
However the bank is surely divested of any interest in the property with the issuance of sale certificate and delivery of possession.
If the bank registers the addendum with contents of the sale certificate then the anomaly may be removed.
Neither the bank nor the debtor has any right , title and interest left in the property and if the addendum is registered you may proceed with the sale.
Devajyoti Barman
Advocate, Kolkata
12807 Answers
165 Consultations

5.0 on 5.0

1. What is the role of the person who had purchased the property from the bank and to whom the bank had delivered the possession?

2. The sale deed had to be registered within 120 days. On the payment of penalty further period of four months is provided. 

3. In your case more than 6 years have passed. So the registration cannot take place now.

4. If the bank registers the addendum then alone you can get the title to the property.

5. Since the bank has now issued an addendum the purchaser may maintain a suit for specific performance against the bank.
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

you have stated that  your  investment would be more than 4 times of the property and you don't want to land up any complications arising in future pertain to the same.

hence advised you not to purchase the property as sale deed is not registered and it cannot be registered after period of 6 years 

consult a local lawyer before taking any decision
Ajay Sethi
Advocate, Mumbai
45435 Answers
2669 Consultations

5.0 on 5.0

1. Where did the Bank make typographical error? Is it in the sale certificate only? Was the schedule of the property correctly typed in the Demand Notice and Possession Notice issued by the Bank u/s13(2) & 13(4) of SARFAESI Act,2002?

2. If there is the said error in sale certificate only and not in the above notices then the addendum is adequate to convey the correct title of the property to you,

3. Please note that  IT IS NOT MANDATORY TO REGISTER THE SALE CERTIFICATE ISUED BY THE BANK  BUT IS OPTIONAL. Sale Certificate is not Sale Deed, it is a Certificate,

4. Since you are going to use the said property, you can skip registration,

5. If you want to register the said Sale Certificate, the addendum date should be applicable,

6. Contact your local Registration office for the purpose and convince the Registrar who may initially refuse to accept your argument though you have a valid ground.
Krishna Kishore Ganguly
Advocate, Kolkata
18430 Answers
448 Consultations

5.0 on 5.0

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