Sarfeci act
S.N.Derashri
(Querist) 09 April 2014
This query is : Resolved
A pledged documents of certain property with the bank for security of loan. He sold the properties and handed over the possession to different persons through Regd. Sale Deeds. The loan remained unpaid and the bank has taken a symbolic possession of the properties under SARFECI Act. Can purchasers who are in possession of the property ask the bank to release the Title Deeds pledged,in their favour if they pay the outstanding for and on behalf of loanee. what will be the remedy If bank refuses to accept this proposal. Can this proposal be enforced through Court by filing a Suit for Mandatory Injunction?
R.V.RAO
(Expert) 10 April 2014
bank is concerned only to get its outstanding loans on its books repaid with agreed rate of interest.no bank will like to record an NPA in its books. bank welcomes repayment in full with interest.
At the best,the bank may ask the purchasers to come with original borrower,for documentation purpose.
besides documentation,it is mandatory that banks return the original title deeds etc... only to the bank borrower.
Rajendra K Goyal
(Expert) 12 April 2014
The Bank would not refuse. It is concerned with return of its outstanding.
After repayment on behalf of the original borrower the purchaser can claim it from the borrower.
Since the purchaser is neither a borrower or a guarantor, the title papers would be handed over to borrower only.
