Noc from bank for lease registration

This query is : Resolved 

13 July 2019

We have taken home loan from the bank in 2012, there are three applicants for the loan and property also owned by three persons one third of the property each. I am the primary applicant for the loan. In the year 2018, I became the full owner of the property and it is registered in my name after obtaining NOC from the bank.
Now I want to lease lease the property to a business entity and by registering the lease agreement, for which I have been asking NOC from the bank. Lease term is 9 yeras and the loan remaining terms 8 years.
Bank is not doing any action.
Is there any law which restricts the lease registartion of the mortgaged property?
Apprecaite your advice

kavksatyanarayanaOnline (Expert)
13 July 2019

Ji, if you individually apply loan for your 1/3rd portion, now you will get NOC from Bank. But it is the jointy property of 3 persons and only one person i.e. you have cleared your debt for your 1/3rd portion. But you signed in the loan document for the entire property. I opine it is better to execute a partition deed in three (3) equal shares between you and your 2 coowners.

Muneeswaran (Querist)
14 July 2019

Thanks for the reply. Please note that I am the full owner of the property and registered on my name. This registration of the property was done after getting NOC from the lending bank. However the loan is still on three persons and the entire loan will be transferred to my name as per the undertaking given by me to the bank. Bank is not taking any steps to transfer the loan and not giving NOC for lease registration.
Also I am only paying the EMI to the bank now.

Dr J C VashistaOnline (Expert)
14 July 2019

What document entitled you to be full owner?
When the property was mortgaged with Bank how was the document for transfer of title executed by other owner(s) in your favour? Unbelievable.
Consult a local prudent lawyer with relevant record for proper appreciation of facts, guidance and proceeding.
However, if you are located in Delhi and feel so, may contact me (on appointment) at: Chamber No 647, Lawyer's Chamber Block, Dwarka Courts Complex, Sector 10, Dwarka, New Delhi-110075
Cell # 9891152939 email: or visit:

Muneeswaran (Querist)
14 July 2019

Sir.. I don't understand your question. When the property was mortgaged, the property still can be sold to other owner by transferring the loan and by creating the new MODT to the same bank. That's what we (three) did from the previous owner. Again the same approach was followed instead of sale deed it was done through release deed as other part owners are blood relative (brother). It is a registered release deed, and a new MODT created to the bank as a single owner. Hope now are more lights is thrown here.
My question to the forum was, is there any law which restricts the bank to give NOC for lease registration of the mortgaged property for a long term lease (9 years). I did not get reply to this question.

Parthasarathi Loganathan (Expert)
30 September 2019

No Third Party Security Interest will be created by the Bank by way of issuance of NOC to the borrower to lease the mortgaged property as it will decimate the recovery proceedings through DRT or SARFAESI.

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