Proporty bought in auction from bank

Querist : Anonymous (Querist) 07 January 2012 This query is : Resolved
A relative of mine bought in property in public auction conducted by bank.He paid the full sale consideration and got the sale certificate registered.Bank arranged possession of that flat.He let the flat for rent to one of friends and during the tenancy the old owner who was the borrower seems to threatened the tenant to vacate the place and said that the auction purchaser does not have possession. When the complaint was taken to the bank did not give a proper reply.My question is whether the old owner has any hold over the property after the confirmation of sale and issuance of sale certificate?

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Harshada Shukl Kulkarni (Expert) 07 January 2012
No, if your relative has purchased the said property in Public Auction and proper sale certificate is issued in his favour then the earlier owner do not have any right of whatsoever nature over the said Property and if he is harassing your relatives tenant and threatening then your relative should file complaint with the police so as to avoid any further threats. Also,once the bank's dues are over and the possession is handed over, whether the banks replies or not do not matter

Chanchal Nag Chowdhury (Expert) 07 January 2012
The complaint should have been lodged with the police & thereafter, if necessary, to a court & not the bank as it has completed its part of the deal & it is not its responsibility to guard your property.

Querist : Anonymous (Querist) 07 January 2012
Thank you Mr.Kulkarni and Mr.chowdury for the valuable contributions.But the borrower seems to have told the tenant that while he was holding settlement talks with the bank it had sold his property and since bank sold his property without taking him into confidence he would redeem it at any point of time.Do banks allow redemption even after confirming the sale and issuing the sale certificate?

bhagwat patil (Expert) 07 January 2012
If there is disput about price of the property he can start litigation.

Deepak Nair (Expert) 07 January 2012
No. The old owner has no right over the said property.

The issue will be between the bank and the old owner. the old owner have to file a suit and fight if what he says is true. if in any case the property goes back to the old owner, your friend will be adequately compensated by the bank.

With regards to the thretenings to the occupants of the house, you need to lodge complaint with the police as advised above by the experts.

ajay sethi (Expert) 07 January 2012
agree with experts . old owner does not have any rights over the property . if old owner was aggrived by order of public auction he ought to have challneged said order . once sale has been confimed and posession handed over old owner cannot claim any rights over said property

Rajeev Kumar (Expert) 07 January 2012
Yes the old owner haven't any right in property if he is aggrieved by public auction then he should challenge the order in court

Raj Kumar Makkad (Expert) 07 January 2012
It seems that JD/old owner of the property is trying to take his possession back so that he may enter into the court and may claim that he is still under possession and a paper entry of auction has been made and he is ready to repay loan amount.

So ensure your constant possession either by way of court or personally or adopting both means.

If he starts any litigation then you should perfectly defend your case without thinking that bank shall safeguard and shall fight for you. You have to stand on your own legs.

Devajyoti Barman (Expert) 07 January 2012
Agree with above...

prabhakar singh (Expert) 08 January 2012
i too agree with above.......

Querist : Anonymous (Querist) 08 January 2012
I sincerely thank all of you for giving me advice on this.But I dont understand the logic behind banks reluctance to help the auction purchaser.When there are hardly any takers for auction properties which come at discounted prices how could bank shy away from its responsibility of giving perfect title for the property we buy?

ajay sethi (Expert) 08 January 2012
bank has completed the sale . issued you sale certificate put you in posession of property . bank will be bound to act if old owner challeneges the auction . since he has not done so and title has passed on to you bank is no way in the picture . if old owner harasses you , police complaint has to be filed by you

Deepak Nair (Expert) 09 January 2012
Here, you are the owner of the propery and not the bank as the bank has sold the property to you. The bank cannot be said to be answerable to you in such a situation. It is better to file a police complaint without wasting any time.

Deepak Nair (Expert) 09 January 2012
You can take legal actions against the bank only if any formalities with regards to the sale of house to you/relative is still pending.

DEFENSE ADVOCATE.-firmaction@g (Expert) 09 January 2012
In all such cases there is no proper documentation and hence records of rights are not updated.

You have to to civil court and get the property transfered in your name.

Proporty bought in auction from bank

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