who has given the property as gaurantee ,if it is given by GM then then bank can recover all dues by attaching and auctioning theproperty,have you received anotice from DRT,if yes then you need to hire an advocate for this other wise there will be aproblem for your family
Family dispute on grandmother's property
Dear Sir Here are the case points, I would try to keep it brief. 1. Property was bought 35 years back, Grandfather bought it and it was registered in Grandmother's name(GM). 2. They had 4 kids. SON1, SON2, DAUGHTER1, DAUGHTER2. 3. SON1 has been living in the property for 22 years now. Since last 10 years GM1 and SON1 do not get along and GM1 is living with SON2's kids. SON2 passed away and has 1 wife and 2 kids. 4. In 2008 a loan was taken from the bank for education of the son of SON1 and this property was given as a guarantee. The loan is unpaid and bank has issued a notice. Question: 1. Does this property come under Ancestral Property Law? [Land was bought under GM1 name]. 2. Does SON1 have any right over the property? If yes, how much? If not then what does the law say about someone living over 20 years at a place? 3. Can SON1 be evicted from the property by force? 4. What action would the bank take to get the money back? Regards Delhi Resident
Asked 10 years ago in Property Law
9 Answers
Please let us know whether your GM is alive or not. If not has she left any WILL or did she die without leaving a WILL. If she had executed the WILL, then the property would devolve to the beneficiaries as per her WILL , if not, i.e.,died without leaving a WILL, then the property would devolve equally amongst legal heirs. Son1 will have equal right along with his siblings. Son1 can not be evicted because he is also co-owner of the property. Regarding the money to be recovered by bank, please let us know, who gave the property as guarantee, Bank would issue a legal notice through DRT to clear off the dues, if it does not happen, bank would attach the property and auction the property to recover its money and the left over money after auction would be given to the legal heirs.
1. The property cannot be termed ancestral by any stretch of the imagination. It is the self purchased property of grand mother. Since it is registered in GM's name she is the absolute owner thereof and can deal with the property in the manner she desires.
2. Son1 does not have any right in the property during the life time of his mother who is the owner of this property. If, however, he can prove that the property was purchased by grand father out of his own income then he can claim a share in the property by dislodging the ownership of his mother. Living for 20 years in a property legally owned by some one else does not confer any right on the occupant in effect whereof the ownership of owner may legally be questioned.
3. In order to evict SON1 his mother shall have to move to court. He cannot be thrown out.
4. The property has been mortgaged to bank. You are liable to pay the principal amount along with interest. Bank has already issued the notice to you. It is advisable to clear the principal amount along with interest, failing which the bank will sell the property at a throwaway price and recover its dues .
1) grand mother is absolute owner of property . it cannot be ancestral property by any strech of imagination
2) eldest son has no rights on property during mother lifetime . merely because he is living for 20 years does not confer any rights on said property to eldest son .
3) mother will have to file suit to evict the eldest son
4) since property has been mortgaged to bank better clear the outstandings failing which property would be auctioned to recover its dues
if the property is auctioned. who is entitled to the money proceeds of the auction?
Asked 10 years ago
The GM has never worked, nor held a post. Never earned a salary. Can that be used as proof to show that grandfather had spent the money to buy the property? What else can be used as a proof?
Asked 10 years ago
if property is auctioned bank would take the sale proceeds for recovery of loan amount . balance if any would be paid to GM .
if grand father had bought property in name of grand mother it would be in nature of gift for the grand mother . you would need evidence in form of entries from bank pass book to show that grand father had paid money from his bank account .
Sir The transaction was done in cash to purchase. While GM has not earned any money ever I believe in the court we can not prove that father + Grandfather spent the money to buy it. Is there any other way out? Also, Bank has given us 60 days to deposit the money or they will take action. How does that process work? How much time it takes? The case is referred to DRT is what I know. Post that, when we appear there can we say that we tried and are willing to pay. Because there is still 2 years left for the loan to be repaid. Regards
Asked 10 years ago
Property will be auctioned by bank, so bank will take the proceeds of sale which can satisfy the principal amount and interest. The remaining proceeds will be given to grand mother as she is the owner of property.
The mere fact that GM has never worked or had any independent source of income is not sufficient to impeach her ownership. You need receipts of the amount that was paid while purchasing the property if the purchase price was paid in cash. If the amount was paid by way of a cheque then pass book entries will have to be produced in court.
bank will deduct the amount received from sale proceed
1) if transaction was done in cash how can you grand father made payment . it could have been cash received by grand mother from her parents also .
2) you should contact a local lawyer and reply to notice received from bank. on account of failure to pay loan installments bank must have recalled the loan . you dont have 2 years time for loan to be paid .
3) make an application to bank for one time settlement . offer to deposit 20%of principal amount and ask for balance amount to be paid within period of 2 years or so .