• Bank asking for legal or succession certificate

My father is expired and he is having loan on self acquired property as i clear the loan fully the bank is not giving the home paper and i also submit the affidavit attested from magistrate but they are asking for sucession certificate for releasing home paper as i dont want to transfer the property. Why they are not giving paper when i already clear the loan.
Asked 10 months ago in Property Law from Bahadurgarh, Haryana
Religion: Hindu

Send them legal notice.  In case they do not release the original documents, file a complaint in consumer court or you can file a suit for mandatory injunction directing them to release original title documents.

Dalip Singh
Advocate, New Delhi
575 Answers
12 Consultations

4.9 on 5.0

They need to give you loan paper as for the said thing succession certificate is not required. You can complaint to banking ombudsman or consumer complaint in forum

Prashant Nayak
Advocate, Mumbai
18654 Answers
34 Consultations

4.6 on 5.0

for taking back the deed  of a house property upon repayment of loan, no succession certificate is required. ask the bank manager to inform you in writing that without succession certificate they will not handover the deed lying with bank. if the bank manager refuse you to give any writing, you write a letter requesting the branch manager for returning the deed. in your letter you should mention that for taking back deed of immovable property no succession certificate is necessary and you have already submitted affidavit and based on that affidavit bank accepted the repayment of loan from you. even then the bank remain silent, you can lodge a complain to the banking ombudsman informing your grievance.

Manish Paul
Advocate, Kolkata
287 Answers
2 Consultations

4.9 on 5.0

The bank can ask for the court order to ascertain the  legal heir to give the property papers so for same you along other legal heirs can apply for the succession certificate. The RBI has given such discretion to bank they can take such steps to ensure the legal heirs.  

Shubham Jhajharia
Advocate, Ahmedabad
24320 Answers
96 Consultations

5.0 on 5.0

Do as advised.  No legal certificate required.

Dalip Singh
Advocate, New Delhi
575 Answers
12 Consultations

4.9 on 5.0

See you can give a legal notice to bank that as per there instruction complete amount is paid and NOC of legal heirs is there also you can provide an indemnity bond if they need and ask them to release the papers if they fail you can take legal action for there deficiency.

Shubham Jhajharia
Advocate, Ahmedabad
24320 Answers
96 Consultations

5.0 on 5.0

Dear

For claiming any Investment or assets of your father you need succession certificate from Court.

You should apply for succession certificate from Court of Judicial magistrate.

If you need any assistance then you can contact me.

Mohit Kapoor
Advocate, Rohtak
7970 Answers
2 Consultations

5.0 on 5.0

The person ie your father who had taken the loan expired. Now a succession certificate is required which can be obtained from the district court. In that certificate the names of the heirs would be mentioned.

Then only the bank can release the property in their name as tge property would be held jointly by those heirs.

Regards 

Rahul Mishra
Advocate, Lucknow
7974 Answers
15 Consultations

5.0 on 5.0

Succession certificate applies only where there is no will, bank will not give you property paper without succession certificate.

Mohammed Mujeeb
Advocate, Hyderabad
15575 Answers
7 Consultations

4.5 on 5.0

The property belonged to your father. Now he is no more. The bank will give the property papers to whom? It cannot give papers in the name of a person who is no more. A succession certificate can be obtained in a month by the district court.

Regards 

Rahul Mishra
Advocate, Lucknow
7974 Answers
15 Consultations

5.0 on 5.0

You can do as aforesaid you will get justice

Prashant Nayak
Advocate, Mumbai
18654 Answers
34 Consultations

4.6 on 5.0

The reason bank is not giving original documents is to avoid being dragged in disputes among legal heirs 

 

hence bank in insisting on succession certificate 

Ajay Sethi
Advocate, Mumbai
74555 Answers
4459 Consultations

5.0 on 5.0

 

obtain letters of administration/ succession certificate. It does not take more than 6 months if there is no contest 

Ajay Sethi
Advocate, Mumbai
74555 Answers
4459 Consultations

5.0 on 5.0

If na k is agreeable you can execute indemnity bond to indemnify bank against claims made for property 

Ajay Sethi
Advocate, Mumbai
74555 Answers
4459 Consultations

5.0 on 5.0

1. Well, the Bank is certainly insisting on something which they are not supposed to do.

2. You have already complied with their demand of affidavit and now demanding for succession certificate is without any basis of law.

3. So you can now file a case before the consumer forum seeking damages and compensation for withholding the original papers.

4. Considering the negligence and deficiency of service they are indulging in the amount of damages and compensation must be huge.

Devajyoti Barman
Advocate, Kolkata
19589 Answers
278 Consultations

5.0 on 5.0

See as far as money is concerned all the leg heirs haave to pay it anyway bank could have filed for recovery.

As far as documents are concerned we understand you concern but bank has power to take preventive measures so cannot force them.

Shubham Jhajharia
Advocate, Ahmedabad
24320 Answers
96 Consultations

5.0 on 5.0

1. bank is not wrong either

2. actually the bank wants a valid legal discharge if they the originals are to be handed to your mom

3. had your father been alive, there was no problem at all

4. but in this case, after demise of your father, how would the bank know who all are his legal heirs

5. what if some legal heir comes up in future and sues the bank for releasing the property papers to one of the legal heirs without a specific court order

6. so bank is not harassing you. Its only following the legal procedure

7. even if you have paid the full loan, the bank is still duty bound to check whether the person to whom the original would be handed is infact having consents from all the legal heirs of deceased borrower

8. it is only for that reason that the bank has refused to release the document

9. you will need a letter of administration from court and submit it to the bank and the bank will immediately release the paper to the court appointed administrator which will give the bank a valid legal discharge and protect the bank against all future claims from any unknown legal heirs of the deceased

Yusuf Rampurawala
Advocate, Mumbai
5113 Answers
31 Consultations

5.0 on 5.0

complain to bank ombudsman if bank is refusing to hand over original documents inspite of affidavit submitted by other legal heirs to hand over original documents to you 

Ajay Sethi
Advocate, Mumbai
74555 Answers
4459 Consultations

5.0 on 5.0

See RBI no where in no notification says that bank has no right it just say that bank may not ask for . It no where forbid bank.

Shubham Jhajharia
Advocate, Ahmedabad
24320 Answers
96 Consultations

5.0 on 5.0

All the bank officals do like this. Write a strong letter to Chairman of the bank under copy to them.

Dalip Singh
Advocate, New Delhi
575 Answers
12 Consultations

4.9 on 5.0

quote the entire text as appearing in the RBI guidelines

also give details of the RBI guidelines you are referring to

cannot reply on basis of random extracts described in your words

Yusuf Rampurawala
Advocate, Mumbai
5113 Answers
31 Consultations

5.0 on 5.0

Bank has to ensure that the papers has been passed to the right legal Heirs in case there are more than one legal here then bank will definitely as for the share certificate issued by the district magistrate even if you have cleared all the outstanding in the bank bank is bound to ask this share certificate as in this case your mother is also a share holder in the property along with any other siblings you have so there is nothing wrong in that that you have to get the share certificate and deposited in the bank to get the certificate back otherwise you have to provide NOC from all the legal Heirs in this regard which I think ok to go for the legal heir certificate is much better to avoid any hassle in this regard after getting the legal heir certificate from the district magistrate you can get the NOC from other legal Heirs to get the document in your favour

Vimlesh Prasad Mishra
Advocate, Lucknow
6380 Answers
20 Consultations

4.9 on 5.0

Yes

Prashant Nayak
Advocate, Mumbai
18654 Answers
34 Consultations

4.6 on 5.0

With all due respect, if you have the papers why don't you argue this before the bank instead of arguing here.

Rahul Mishra
Advocate, Lucknow
7974 Answers
15 Consultations

5.0 on 5.0

Issue legal notice to borrower to repay money 

 

2) if he fails to do so file summary suit under order XXXVII of code of civil procedure to recover your money with interest 

Ajay Sethi
Advocate, Mumbai
74555 Answers
4459 Consultations

5.0 on 5.0

Legal heirs of the father can issue legal notice to the said person for the refund of the amount if on notice the person fails then a suit for same can be filed before the civil court.

Shubham Jhajharia
Advocate, Ahmedabad
24320 Answers
96 Consultations

5.0 on 5.0

You can file suit for recovery against him. If opposite side is company then you can also file petition under NCLT

Prashant Nayak
Advocate, Mumbai
18654 Answers
34 Consultations

4.6 on 5.0

Even though you have discharged the loan fully, the property title documents can be handed over only to the legal heirs or the authorised representative as authorized by all the legal heirs, hence to ascertain the legal heirs or the successors in interest, the bank would rightly insist on the succession certificate, there is no legal infirmity in it.

 

T Kalaiselvan
Advocate, Vellore
64533 Answers
836 Consultations

5.0 on 5.0

You cannot call it as harassment, it is the rule that governs the situation because they will be held responsible when somebody will sue the bank claiming the rights in the property on the basis of the title documents given to some other person.

 

T Kalaiselvan
Advocate, Vellore
64533 Answers
836 Consultations

5.0 on 5.0

If you do not want to comply with the requirement as demanded by the bank in this connection, you may issue a legal notice mentioning the said RBI rules and wait for their reply.

 

 

T Kalaiselvan
Advocate, Vellore
64533 Answers
836 Consultations

5.0 on 5.0

You can issue a legal demand notice based on the transaction details in the capacity of the legal heirs of the deceased lender.

After that you can file a money recovery suit.

 

T Kalaiselvan
Advocate, Vellore
64533 Answers
836 Consultations

5.0 on 5.0

  1. As per the information mentioned in the present query, makes it clear that bank is doing and acting arbitrary with you.
  2. Yes, you are absolutely right in saying that the succession certificate is needed to claim the money or amount in accounts etc.
  3. At the time when you were paying the loan they didn’t ask anything, but now when you demanded for property paper they are putting this foolish condition.
  4. They need to understand the importance of an affidavit showing your relation with your father along with you le valid ids.
  5. You should approach the Hon’ble HC for getting the paper under Writ Jurisdiction as per Article 226 of Mandamus in nature seeking direction for the bank.

Sanjay Baniwal
Advocate, South Delhi
5209 Answers
12 Consultations

5.0 on 5.0

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