Ask TATA capital for possession and registration of sale deed in respect of plot. Title of plot seem disputed hence not safe to purchase.
Bought a property in bank auction which has dispute
Hello Legal Experts, I bought an EMPTY PLOT in bangalore though auction from Tata Capital. After I won the auction and the Sale Certificate registered in my name, I learnt that there are two other persons who has registered the same plot in their name. In short, GPA holder has sold the same plot to three different persons. GPA holder - 2012 June - Sale deed to Person 1 GPA holder - 2012 December - Sale deed to Person 2 GPA holder - 2013 December - Sale deed to Person 3 Person 1 and Person 3 did not do any further sale/transfer of the property till date. But Person2 --> Gifted to his wife on 2017 --> Sold to Person on 2021(who defaulted bank) --> Bank auction on Feb 2023 --> I bought in auction and registered. Because of Person 1, Person 3, I am unable to take possession of the site. The site does not have any compound or any construction, completely empty plot. It will be great if I get legal opinion on how to proceed this either to get the property or to cancel the auction(and property registration) and get the amount I paid to Bank. Thanks in advance.
Asked 2 years ago in Property Law
Religion: Hindu
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12 Answers
It is responsibility of bank to deliver you physical possession of plot
2) issue legal notice to bank to deliver you physical possession of plot
3) Jammu and Kashmir HC has held that as per Section 13(4) of the SARFAESI Act read with Clause 9 & 10 of Rule 9 of the Security Interest (Enforcement) Rules, 2002, it was incumbent upon the authorized officer/respondent No. 1 to deliver the property to the purchaser free from all encumbrances on deposit of money in the Bank. Further, it was observed that no doubt, the Bank could auction the property even with encumbrances attached to property but it was incumbent upon the Bank to disclose the encumbrances and litigations on the same or tenancy, if any, attached to the property to all the persons who wanted to participate in the same and to the successful bidder.
4) Though, the physical possession of the property need not be taken before being put to auction but the respondents cannot shirk from their duty to hand over the physical possession of the property to the auction purchaser. If respondent No. 1 was not in a position to take the physical possession of the same before the sale, then they had to adopt course under Section 14 of the Act. The contention of respondent No. 1 that there is no statutory obligation on their part to put the auction purchaser in possession thus does not hold any merit
Symbolic possession is when the bank has the legal right over a property, even though the previous owner continues to have physical possession (occupancy) in the property. Under the law, banks are required to take physical possession and then transfer the rights to the buyer.
It isn’t banks’ liability, the buyer assumes all the risks associated with the property. “Buyers are required to conduct thorough checks regarding the title and possession as once the property is conveyed to the buyer, all the risks and liabilities are assumed by the buyer,
Typically, the auction notice has a clause, which reads something like this: to the best of the knowledge and information of the authorized officer, no encumbrances exist on the property, and that the said officer shall not be responsible for any unknown existing and future encumbrances or for any third-party claims, rights or dues.
However in a judgment by a high court it was observed that the Bank could auction the property even with encumbrances attached to property but it was incumbent upon the Bank to disclose the encumbrances and litigation on the same or tenancy, if any, attached to the property.
It was also observed that bank cannot shed away their responsibility for delivering physical possession to the successful bidder after the entire bid amount has been realised by the bank from the bidder. It is the bank's duty to invoke section 14 of the Sarfaesi act to take physical possession.
You send a legal notice to the bank to deliver physical possession of the property sold through auction failing which you can approach court with a suit for specific releif to direct the bank to deliver possession or to return the entire amount with interest.
Once auctioned, bank will not repay. Bank has only excuse, sale was as is where is basis. First to take possession with the support of police.
I feel if the title has an issue take your money back
1. Based on your narration, person 1 is the legal owner of the property.
2. File a suit against the Bank to recover your money by cancellation of auction thereby getting back your money.
3. Alternatively have discussion with person 1 and person 3 to amicably settle the matter to get the property in your name.
Dear Client,
- Person 1 is the legal owner of the property because the property is registered in their name.
- You can file a suit against the bank to recover your money by cancelling the auction. This would mean that the property would be returned to person 1, and you would be refunded the money that you paid for it.
- Alternatively, you could have a discussion with person 1 and person 3 to amicably settle the matter. This could involve you agreeing to sell the property to person 1, or person 1 agreeing to pay you some compensation for the money that you lost.
Could you please help me to understand that how easy is to challenge the Bank in court to cancel the auction and get money back? How long might it take?
Asked 2 years ago
File writ petition in HC to direct bank to refund your money as physical possession not delivered and title is not clear and marketable
2) disposal may depend upon pendency of cases in high court
Need to know history of property. Actual owner is p 1. approach DRT for refund.
It will take some time try to file consumer complaint it willl be easy then suit
A writ petition is hereby filed before the Hon'ble High Court seeking directions to the concerned bank for the refund of my money. The refund is requested due to the failure to receive physical possession of the property, and the title being found not clear and marketable. The disposal of this matter may be contingent upon the pending cases in the High Court.
It is not the question of easy or tough for challenging the bank in court, if you are aggrieved and looking for solution and legal remedy you may have to approach court with a suit seeking appropriate releif in the circumstances.