Can Indemnity clause be exercised?
(Querist) 05 November 2008
This query is : Resolved
Mr.A defaults repayment of housing loan taken for purchase of a site and construction. The nationalised bank calls for an auction in its premises and sells the site to Mr.X in the auction. Mr.X has paid full consideration for the site but the bank has not yet registered the site in the name of Mr.X even after 22 months from the date of auction. When Mr.X verified the property documents which were with the bank which the bank did not give before the auction the bank did not have all the documents required for registration of the property in his X name. so Mr. X insisted the bank to induct the indemnity clause into the certificate of sale and to provide all the necessary documents required for registration but the bank is just deny Mr.x that they cannot give any documents nor they will induct the indemnity clause. When Mr.X verified a copy of the sale deed of Mr.A which Mr.X received from the bank , Mr.X came to know that the bank officials have released the loan to Mr.A even for construction when there is no construction at all and they are fearing that if they induct any indemnity clause they may be in trouble for any future problems that may araise in the future.
What measures can Mr.X take to get the site registered in his name?
Several requests to various officials of the bank have failed to get any response from the bank.(at the regional levels & h.o.level)
(Expert) 05 November 2008
When the auction caused?
Under the provision of which act? (i.e, either under SARFAESI act)
If the sale is caused under the provisions of SARFAESI act, mere issuing sale certificate is enough and in the sale certificate, as laid down in the act they will mention the schedule of the premises, if the same reveals that it is consisted with any kind of construction or not - please go through the same.
When you ask the Bank for Indemnity bond, you won't get it as such it is an Organization but not an individual one, in which decision will be taken by higher ups.
But you have every right to stress the bank for registring the property in your favour.
How ever some details were in missing.
If you need any further clarification, in free, please contact me, over phone 9441194808.
(Querist) 05 November 2008
Iam providing you the following clarifications of this case:
1.the auction was made under the SAFRAESI Act.
2.The bank has released the loan for construction also when there is no construction at all at the plot.
3. Bank has not issued Sale certificate
(Expert) 28 November 2008
Approach the high Court u/A 226/227 seeking appropriate Writ, Order or direction against the bank. That is ur only remedy. State all the confirmed facts in the petition - alleging malafides.