1. It is a Criminal Offence on part of the Seller to sell the mortgaged property. Further IF you are aware of the same, THEN you need to inform the Bank or you need to clear the loan amount after deducting the same from the Sale-amount. ELSE you also become criminally liable for abetment with the seller. Hence take proper precaution. A Police FIR also can be filed against the seller, for Cheating, Fraud & Intimidation.

Keep Smiling .... Hemant Agarwal

 Since the seller has not informed before for existing bank loan this amounts to cheating and if he defaults in loan the bank has right over flat.

So first issue legal notice to seller giving him 15 days time to clear bank loan and get you NOC and original papers otherwise you will proceed against him legally .

You can file a criminal complaint for cheating against him if he fails to do so as he has not disclosed said fact while selling the flat.

Did the seller conceal the encumbrance? This means did he conceal he had taken a loan against this property, and sold it off to you? 

In that case, sue him for breach contract on the grounds of fraud, misrepresentation and claim the entire price you paid+ compensation + legal expenses

Your email I'd isn't seen here. I'm prepared to represent you in court. Kindly seek appointment with me

1) Actually sale deed won't proceed without indemnity clause and loan details who has the property papers.

2) If stil you want to sell the property than make tripartite agreement in that inculde all parties name including bank loan details and new buyers name.

3) If Original owner and bank has no objection in writing and making tripartite agreement for sale deed than you can sell the flat.

4) Otherwise Bank will take action if original owner stop paying the EMI's and bank may take possession of the property and auction it.

Selling flat on which loan is outstanding, without NOC of bank, is a breach of contract by borrower seller 

Under the mortgage agreement with the bank, the borrower is required to obtain NOC of lender bank before he can create any third party rights in the mortgaged flat

Even if the flat is now sold to you, the bank has a prior charge on the flat

So if the seller defaults in loan repayment then bank can initiate action under SARFESI act and put up the flat on public auction to recover its dues

Any excess sum left after deducting auction expenses and adjustment of loan, will be returned to owner of flat

If you wish to safeguard your flat, you will now have to file a suit against the seller to obtain discharge of the loan on your property and give some other property to the lender as security and whose value is sufficient enough to cover the pending loan

You can also claim damages from seller

1. The sale was irregular as the property was mortgaged and the sale was done without the consent of the mortgagee.

2. Now since the mortgage was done by way of deposit of tile deed you can not take the plea of bona fide purchaser without notice.

3. So you can file a suit for recovery of money from the seller which would take time.

4. otherwise repay the loan by paying the bank directly and get the title of the property clear.

This occurred due your sheer negligence and you can not take your ignorance of the whole issue.

1. Seller could not have sold the flat to you without bank consent 

2) issue legal notice to seller to repay the bank loan within period of 15 days of receipt of notice 

3) if he fails to do so file case of cheating , criminal breach of trust against seller under section 406,420 of IPC 

4) sue seller to recover your money with interest as tile is not clear and marketable 

Issue a legal notice to seller through an advocate for repay the bank loan amount. You can file complaint against him u/s 406,420,468.

You can also file a civil suit against him for recovery of money along with interest. 

1. As per the information mentioned in the present query, makes it clear that you have been cheated by the seller.
2. Now, you should give a notice to that person about the repayment of the bank loan as soon as possible.
3. Otherwise, you may have to go before the court of law in a suit for direction to the person to repay the loan or otherwise repay the amount which you have given to him including the interest till now.
4. You an also file a criminal case against him for misleading you about the on going loan on the flat.

File a suit of specific performance if you have an agreement which ckearly mentioned the clauses.

1. You have been grosslyb cheated by the seller.

2. It apperas that the said flat is under mortgage with the lending bank and as per law, a mortgaged property can not be dealt with in any way including selling.

3. The sale deed registeered by you by p[aying stamp duty is invalid for reasons stated above and itt will continue to stay as invalid even if the seller rep[ays the loan.

4. The procedure to buty such mortgaged property is to enter in to tripartite agreement with the bank, seller and yourself wherein the bank will  agree f0or the selers regist6ering the sale  deed in your favour and yopu shall pay the consideration to the seller by depositing (handeing over to the bank representative present at the time ofregistration of the sale deed)  the  cheque to his loan account.

5. When you have already paid the consideration, the seller shuld have paid the balance amopunt to the bank and is avoiding to make such payment.

6. The seller might avoid  payment fo the outstanding amount and in that case the Bank will take possession of the said flat by initiating SARFAESI proceeding and sell it of to recover its outstaning dues lying in the loan account of the seller.

7. Lodge a policfe complaintant against the seller for chjeating you and thereafter file a Recovery Suit praying for an order directing the seller to return yuou the amount paid by you with interest, danage and cost.

Till the home loan is not fully discharged the title for the property in you possession cannot be claimed.

The bank will be having the rights to take symbolic possession and invoke section 13 of the sarfesi act for further proceedings.

Whether you had obtained legal opinion before the purchase of the property.

1. You ought to have conducted due diligence before purchasing the property. People in India do not get the property documents vetted by a lawyer before purchase, hence they suffer.

2. Now the only remedy for you is to file a suit for declaration of the sale deed as illegal and seek recovery of sale consideration with damages, but the onus will be stacked squarely on your shoulders to prove that the seller had concealed the factum of mortgage of the house.

The bank will attach the said flat if the loan is not paid.you can file a FIR against the seller.