It is mandatory for society to inform lender about pending litigation against society
Is society responsible to mention about litigation on the flat in Mortgage NOC
Hi, There is suite filed against our society by a previous landowner claiming that the society has used more loan than he has sold to the society. Members want to sell the flat and we fear that the society has to inform the bank about the suit/litigation in Mortgage NOC. We want to know that is it mandatory for the society to inform bank regarding the suit?
Asked 6 years ago in Property Law
Religion: Hindu
9 Answers
Can you give the law/act under which this is mandatory?
Asked 6 years ago
When you approach bank for loan the lender wants an NOC from society that title is clear and marketable and that there are no pending litigation against society
society has had to give its NOC for sale of flat by the member
society cannot suppress material facts from the lender
It's not mandatory but concealing the said fact should not affect the interest of the bank
Yes, it is mandatory to inform the bank if you have the knowledge about the same
1. there is no case law
2. but for any litigation touching the society and its property, the information has to be given to the lender bank
Without informing if loan obtained shall be criminal offense of cheating. But discloser is required only if asked. I
Yes it is mandatory for society to disclose the details of litigation pending against society.
The society in its NOC may make a mention about the subsisting mortgage or pending litigation against the property to which it is furnishing NOC now.
You may go through the bye laws of the society held in the registrar of societies.