• Who will pay my money?

Hello,

I have recently bought a property through e bidding from a nationalized bank for about 1.8 crores around September 2014 and got the property registered recently. Bank claimed that it belongs to defendant who had been an NPA for a long time and hence this property is put to sale.

Few days earlier I have received a legal notice from defendant's son regarding the purchase I made on the property stating that the property doesn't belong belong to bank\Defandant but it belongs to him as per his Grand Parent will that was registered in late 1970's.

Also he filed a declaration suit stating that Bank\Defandant(his father)\I(third Party on the property) has perform fraud and claiming the rights of the title. 

Few questions in that regards?
1) Can he claim this property? What are the merits he wins the case?
2) If in case i lose the case? where should i get my money from is it from the bank?
3) Who responsibility is it to check if the title is ok or not? I got EC before purchase and it looked fine how would I know if that property I bought belongs to defendants son not the defendant before purchase?
4) What should I do to defend this property? 
5) Also i spent about 50 lakhs on the property already apart from 1.8 crores?Is this money lost ?
Asked 1 year ago in Property Law from United States
Religion: Hindu
1) it is necessary to peruse the case papers to advice 

2) if grand father had executed will in favour of son father could not mortgage the flat to bank 

3) in the vent you lose the case you have to clam the money paid by you from the bank 

4) you should have consulted local lawyer , obtained title clearance certificate before purchase of the property 

5)you should engage a local lawyer file detailed reply that you are a bonafide purchaser of value 
Ajay Sethi
Advocate, Mumbai
23291 Answers
1220 Consultations
5.0 on 5.0
Hi, You are the bonafide purchaser for the value and from your narration defendant son has already filed a suit so you have to contest the suit on merits.

2. Suppose if you loose the case then you have to file a suit against the bank for recovery of the amount as the Bank is liable to pay the amount.

3. One thing you must remember it is the duty of the purchaser to look into the title of the property, whether it is good and marketable title.

Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
Dear Querist
My opinion on your queries are as under:

1) Can he claim this property? What are the merits he wins the case?
Opinion: As per the information, it seems that you purchase the property from bank which is based on the act of Bank under SARFAESI ACT, now you are the absolute owner of the property and may win the case against the plaintiff.

2) If in case i lose the case? where should i get my money from is it from the bank?
Opinion: if the plaintiff win the case and you and bank lose the case then the bank will be liable to pay your amount with interest and you may also claim the compensation and damages from the bank because the bank is sole responsible regarding any issue with the property.

3) Who responsibility is it to check if the title is ok or not? I got EC before purchase and it looked fine how would I know if that property I bought belongs to defendants son not the defendant before purchase?
Opinion: the bank is responsible, but if there is any terms and conditions of auction then it may be possible then the bank clearly mentioned in their advertisement regarding the status of property. for this without read the terms and conditions of auction, i am unable to give you the best advise.

4) What should I do to defend this property? 
Opinion: Collect the all documents regarding the property from the bank and sub-registrar office and also collect the terms and conditions regarding the auction/sale advertisement of bank.

5) Also i spent about 50 lakhs on the property already apart from 1.8 crores?Is this money lost ?
Opinion: No, the money will not be lost, bank will be responsible for this and will pay all your money.

Feel Free to Call
Nadeem Qureshi
Advocate, New Delhi
3534 Answers
130 Consultations
4.9 on 5.0
1) Can he claim this property? What are the merits he wins the case?

Actually he has to file a case against the bank alone and not you, but since you are the purchaser you have been impleaded in the suit as a necessary party.  The bank only has to defend the case because you are a mere purchaser.



2) If in case i lose the case? where should i get my money from is it from the bank?
Bank is answerable.



3) Who responsibility is it to check if the title is ok or not? I got EC before purchase and it looked fine how would I know if that property I bought belongs to defendants son not the defendant before purchase?

If the bank has sold the property, it becomes the bank's responsibility to clear the litigation.



4) What should I do to defend this property? 

You have to sail with the defence of bank



5) Also i spent about 50 lakhs on the property already apart from 1.8 crores?Is this money lost ?

Mere filing the suit will not entitle him the possession or title of the property, wait for the outcome of the suit, before that challenge the case properly.
T Kalaiselvan
Advocate, Vellore
14069 Answers
127 Consultations
5.0 on 5.0
1. It seems that you omitted due diligence before the purchase. If the property has been auctioned by the bank in breach of law the civil court can declare the transaction as illegal, in which event you will have to file a lawsuit to recover from the bank the amount paid as consideration of the property.

2. It is the duty of the seller to check the flow of title before purchasing the property.

3. Since the lawsuit has been filed you should enter defence to contest it on the ground that you did not possess knowledge about the execution of the will in his favour. 

4. Everything hinges on the suit filed by the defendant's son against you. If he walks away with a favourable decree then it will be an uphill task to recover the amount from the bank. So engage a good lawyer to defend yourself.
Ashish Davessar
Advocate, Jaipur
18158 Answers
449 Consultations
5.0 on 5.0
1. Anybody can claim anything which you can not stop. I find no merit in his claim,

2.The Bank also be a party to the case and there will certainly a direction upon the Bank to refund you the amount with interest and cancel the sale conducted by the Bank,

3.It is your responsibility also to conduct due diligence about he property. Since the will is not probated, it has no value other than a scrp paper,

4.Contest the case fittingly,

5.There is hardly any chance that you will loose the case.However, if you loose,you should claim all your expenses on the property including registration cost.
Krishna Kishore Ganguly
Advocate, Kolkata
12123 Answers
231 Consultations
5.0 on 5.0

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