for balance loan amount of construction company property of trust cannot be attached
no need to bow down to pressure tactics of recovery agent
Attaching entire trust property for the loan balance of a construction company
Ours is a public charitable trust we had taken loan with a bank of x amount after morgaging 1 acre of our property out of total 10 acres ,the remaining 9 acres are unmorgaged and free ,we had defaulted on the loan and now the recovery agency is threatning us with letters ,we have a different construction company and we had also taken loan on that ,the partners of the construction company are trustees in this trust ,so now the recovery agency is threatning us that the loan which is balance of the construction company they will recover from the unsecured assets of the trust we are paying them for the one acre loan we had taken but can they also acquire our remaining 9 acres which is unsecured unmorgaged and that too for the balance of the company which is a completely different entity ,this is a public trust the land does not belong to the trustees so is it possible that for the loan balance of the construction company they will attach properties of the trust which are unsecured and unmorgaged and that too a public trust where the trustees are not entitled as owners the the land
Asked 7 years ago in Property Law
Religion: Hindu
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6 Answers
Under which provision of law they are seeking such action of attaching your unmorgaged assets. Thats not possible. They can just attach the assets which are mortgaged with bank.
Sir the company cannot attach the property of the trust for the construction company loan default as both are separate legal entity and the trust in any capacity has no given any mortgage or guarantee for the company.
But has the company defaulted on its loan?
The 9 acres is the property of the trust
So the agent cannot touch the trust property for the balance loan of construction company
The company cannot attach the unsecured property towards loan repayment.,
They may have to initiate action agaisnt the mortgaged property alone.
Since this is a public trust, the lenders cannot take any such action against the trust as per their whims and fancies.
Hello,
they can not sell more land area that has been mortgaged by you.
if they do the same then challenge the recovery before the DRT.
Regards
