Dual Transaction of a Revenue Property in Bangalore
My cousin has purchased a plot in Bangalore through a bank auction by completing all formalities of auction (Registration is also done). Now a third party is constructing a house & claiming himself as the owner of the said property. Upon enquiry, he showed us some documents claiming his ownership. After verifying the documents, we have noticed that the landlord has sold the property earlier to some other person as well for the same property for which bank had sanctioned loan against pledging the documents. But the said transaction has not been shown in EC provided by Bank to us.
What we should do now?
Can we file a cheating case against bank?
Can we file a case against third party?
How government can register 2 different documents in 2 different people name for a same property?
Do we have any supporting case similar to this?
Asked in Property Law from Bangalore, Karnataka
The first party who bought the property from the original Land owner for the first time has got the first charge on the property. The original Land owner has played fraud on the first party as well as bank by availing loan by pledging the same property. The client would have paid 0.1% of the loan amount sanctioned by bank under equitable mortgage as stamp duty towards deposit of title deeds in sub-registrar's office and the registration of mortgage would not have been done and that is the reason for the transaction not being reflected in the Encumbrance Certificate. You can file cheating case against the bank, who in turn may file cheating case against the original land owner.
1) how was sale made by landlord to first party ? was it by registered sale deed?
2) if property was mortgaged to the bank original documents must be with the bank . if so how could first party have made payment for purchase of property ?
3) it appears to be a collusive transaction between the landlord and first party .
4) third party rights have been deliberately created inorder to prevent you from taking possession of the said property bought by you in the auction .
5) inform the bank in writing about the fraud played by the landlord / first party .
6) ask the bank to refund money paid for purchase of property with interest .
1. When Bank gives loan it collects the original title deed of the property,
2. So, if the 1st party has purchhased the property without registration then that sale in not valid for want of registration,
3. File a declaratory suit against the 1st party also making the Bank another party praying for declaration that you are the actual title holder of the property,
4. Simultaneously, file an application u/o 29 rule 1 & 2 pyaing for an aorder restraining the 1st party to continue construction till the suit is disposed off.
1. In my opinion, Simple Mortgage has been executed with out deposit of Title Deeds.
2. At the time of existence of Mortgage, previous landlord infringed the terms and conditions of the Mortgage Deed.
3. You can file a suit for recovery of money against Bank under bona fide purchaser
4. Bank has right to suit against your Mortgagor for breach of the contract.
5. Now, claiming party in your disputed property also one of the bonafide purchaser, hence his right also will be protected under law.
6. You have another option to approach consumer forum under deficiency in service of the bank to claim damages.