Myself Kumar from Bangalore, I have taken a house for Lease amounted Rs.9 Lakh with RTGS to house owner account on 01.07.2019. After few months i was shocked that the house owner has taken a loan from TATA Capital & which is amounted Rs.1 crore 23 lakh ( include principle, interest, penalty etc ) as on date. The Loan was sanctioned on April 2018 and after he failed to pay the emi the Tata capital given several notice - here the utter shock is the house owner got absconded ! and not replied to any of tata capital notice also. In the month Feb 2019 tata capital has posted possession notice hope 13 ( 2 ) on building entrance and given new paper - public notification on March 2019 about failure of payment. Unfortunately the house owner hided all this information and given the house for lease to Me ( in month of 1.7.2019 ) and ground floor tenet ( 1.5.2018 ). After he got altogether 17 lakh from both Tenets he Absconded now !! We have raised FIR on him, hope its not going give back our money. When we contacted the local lawyer he suggested to raise the pet-ion on court seeking/ requesting to stay on the same house till it get auction and once the auction complete whatever excess amount will come which is more than 1 crore 23 lakh the rest amount will divide equally to both the tenets ( up to our lease amount ) My quires are . 1. The building cost itself will comes to nearly 90 lakh but tata capital itself suppose to recover 1 crore 23 lakh , if auction amount comes less than 1 cr 23 lakh what will be our position ? 2. Will Tata capital stop auction if its amount coming less than the principal which it given ? 3. The Tata capital given more than building value - hope by taking some bribe from house owner - can we request to court to consider us primary to clear the lease amount and then consider the bank 4. My Agreement is non registered and now i am paying court fee ( around 57000 ) to raise petition, but my agreement is after Bank notice & news paper notification still i have right to fight ? where house owner cheated and kept in dark. 5. If auction is not happening as per bank expected recover amount, till that time can we stay in same house ( even it might take 3 to 5 years ) unfortunately the ground floor tenent is handicap with older parents ! very sad we got cheated !! Thanks in advance to all respected lawyers who tried to answer my query.
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If auction price is less than outstanding dues you would not get your money back
2) Tata capital will fix reserve price based on valuation report and would not sell at lower than reserve price
3) bank dues would get priority
4) you have right to take legal proceedings seeking stay from being evicted
- As per law, an owner of a mortgaged property cannot sell or lease the same, without the permission and consent of the mortgagor /bank.
- If the owner has made any transaction without the approval of the bank ,then this transaction will attract a criminal offence against the owner.
- Further under the SARFAESI act, at the time of the auction, the bank has either symbolic possession or physical possession of the property.
- Hence, under section 17 of this Act, the defaulter has his right to appeal with the DRT , within the period of 45 days from the date of order of auctioning.
- Further , the borrower has his right to object if the property is undervalued for auction , and further bank is bound to refund any balance amount , after recovering the dues and all expenses of conducting the auction.
1. Since, you have taken the said property on lease, then you have no right to stop the auction and to take refund your paid amount to the owner.
2. Yes, the bank cannot sell the property on the undervalued price .
3. Yes, you can approach to the court for the same.
4. Yes, you can file a petition for restraining bank to take possession from you.
Dear Sir,
You have other options to win. You have file suit in Debt Relief Tribunal and get some others of stay
on proposed auction of property.
The bank cannot provide the lease amount paid by you even if ther is an excess amount after adjusting the loan amount from the bid amount, it will be handed over to the owner who in turn shall make the payment to you.
If you do not have a registered lease deed then you may not even able to get a stay of auction of the property in the absence of documentary evidence because unregistered lease agreement is not valid in the eyes of law.
It depends that if the court accepts it as evidence based on the discretion of court
The finance company in this case has got the possession of the property as the property was not pleased with them you being the tenant have all the rights towards your payment from the title holder of the property not from the bank they have first right on the property and after possession did property will be auctioned for recovery.
The finance company will not stop for recovery of outstanding.
At this point of time even registering your agreement has nothing to do and you will not be a beneficiary in the property as your agreement is coming after the notice from the bank and you are not interested party.
Please be aware that in this case where the property has been mortgaged to the finance company you don't have any right in the property except as an individual who participates in the auction of the property.
The only option is left with you that you have to file a police complaint under section 420 and 406 against the landlord to get your amount paid back
It depends on the terms of auction whether the same is considered the amount of auction and the lower price less than 1.23 crores is considered as the final amount of auction.
FIR is right step. Fast recovery as owner nailed by police. Against auction , approach DRT for stay. Onus was on you to check about property mortgage. Excuse will not survive in court. So obtain stay on balance of convenience.
Your position is fine. You will only evicted - no recovery from you.
To recover as whatever amount, property will auction in one note price( ओने पोने दाम ).
3 - This is not your concern.
4 - Court fees is not 57k ?
5. You can request court to grant stay in building till not auctioned.
Pursue FIR.
As a tenant you don't have options to stop auction but You can file a motion to stay from being evicted.
Consult and engage a local prudent lawyer for better appreciation of facts, analyse, guidance and proceeding professsionally.
1. You will get nothing even if the house in auctioned on value more than loan amount.
2. No tata capital will not stop the auction.
3. yes but it will not going to happen because tata capital will get priority for recovery of loan amount.
4. There will be no benefit served even if you live in the house till auction because if bank sealed the house then you will not be able to take your belongings without interference of court.
