If your father won the case then you proceed with execution petition to execute the orders for taking possession of the property
Now all the legal heirs have to fight it out jointly
Bank loan on illegal sale
Hi experts, I am based in telangana. My late father's land was sold by some fake people (party x). X sold the land in two parts to y and z. My father lost the original document some where, came to know about sale and filed case in the court. Knowing that my dad has filed the case, y and z individually took loan on their part of the land. Eventually my father won the case and got all the previous transactions cancelled which clearly states on land registry online. I don't have any original documents all I have is online documents and certified copies and proof that the person on cancelled documents is my late dad and I am the legal heir. Everyone whoever involved in the transactions including the bank knows the facts and one potential buyer is offering 25% of the market value. Bank has the all original documents due to the loans taken. Bank recently erected the board and word on the street through agents is that the bank will auction the site. As my late father won the case and the land registry shows the right owner I believe bank has to write off the bad debt. As a legal heir what's my position now, how can I proceed?
Asked 2 years ago in Property Law
Religion: Hindu
14 Answers
Apply for mutation of land in your favour as legal heir
2) if bank seeks to auction land file application before DRT and seek stay of auction
As your father won the case in proving that his property was fraudulently sold and the sale deed in favour of y and z have been cancelled by a court decree which is not even challenged, then bank can no more rely on the original documents submitted to it by y and z for purpose of the loan.
Bank has to go after y and z and it cannot touch the property of the true owner.
If the bank is going to proceed under Sarfaesi act to auction the property then you as the legal heir of the original owner have to file a s.17 petition before the Debt recovery tribunal and obtain a stay against such auction by bringing to the notice of drt the aforesaid court decree about cancellation of deeds in favour of y and z
It is fraud played by lender bank against the immovable property of late father. Bank cannot advance a loan if I collect some third’s persons title document and apply for loan. You have the right you can recover the original from bank. Approach DRT and thereafter High Court of Telangana at Hyderabad seeking to declare the loan transaction as fraud and recovery of originals. It will take time but you will get your documents or bank may come to your settlement meanwhile. Obtain stay on any auction of property by bank. Jurisdiction of civil Court is barred under Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002.
Yes your observation is correct
Dear Client,
It is your responsibility to get the land cleared off all the charges and encumbrances attached to it. Kindly approach the Bank Manager with the records and if no response then kindly, contact the Ombudsman of your bank branch with all the necessary documents and proofs of this and request bank to return all the original doucuments.
Thanks & Regards
Sir/Madam,
You are suggested to file a case against Bank to stop their actions of auction and claim that your property cannot be auctioned by bank. Also, make parties to y and z in the said case.
"WHEREAS after coming to know about the fraud played by the Second party, the First party has filed petitions before the District Registrar and the Hon'ble District Registrar vide its Proceedings No. ####/xx/2### dated xxxxx ordered the Sub-Registrar, Rajendranagar, Ranga Reddy, to Cancellation Deed cancelling the Deed of Agreement of Sale-Cum-General Power of Attorney Regd. Doc. No. Xxxx of xxxx dated xxxxx in absence of the Second party by relaxation of provision under Rule 26(k) of Registration Rules which prescribes for compulsory presence of all the parties of principal document." The above statement is from the cancellation deed and need a clarification on what basis the district registrar has commissioned the cancellation of fraud deeds, does "relaxation of provision under rule 26(k)" means that DR didn't use any court order or ? As far a I remember my late father was appearing the court hearings but I wasn't given full update and unfortunately he has passed away suddenly due to severe health conditions.
Asked 2 years ago
No orders have been passed by court for cancellation of agreement for sale cum GPA
registrar has passed orders for cancellation
Under proviso to Rule 26 (k) (i) the Registering Officer has power to dispense with presence of parties for execution of cancellation deed only if the Cancellation Deed is executed by Civil Judge of Government officer competent to execute government orders in respect of Government, assigned or endowment land. Order passed by Registrar under Rule 26 (k) (i) is without jurisdiction and liable to be quashed by High Court in writ petition. The Rule is mandatory, Registrar has no discretion to relax the Rule.
After reading all the things, you are suggested to proceed as advised earlier.
Dear Client,
it is not possible to ascertain from this much piece of information whether the DR did or not use any court order for this purpose. A thorough analysis of the entire decree and certified copy has to be analyzed in order to be in a position to answer your query.
Thanks & Regards
Rule 26 (i) (k) (i) thus advances the object of the Registration Act, 1908 too if it is interpreted broadly to cover “agreements for sale”/ executory contracts or “agreements for sale-cum-General Power of Attorney” or “agreements for sale-cum-Irrevocable General Power of Attorney” since it gives notice to parties prior to execution of cancellation deeds of all such transactions.
The district registrar court has applied the above rules and passed an order to cancel the documents for the reasons cited therein
You can challenge that order.
- Since you have certified copy , then apply for getting mutation in the name of legal heirs after submitting death certificate and court order.
- Further, , as the bank is going to auction the property then you can move an application before the court/DRT for restraining the bank to take any legal action against the property and its real owner.
- Further, lodge a compliant to the bank after narrating all the facts along with the court orders , and advise for taking legal action against x ,y for the recovery of the amount taken by them , as the property document was mortgaged and the loan was sanctioned on the profile of the fake persons.
