Remedy for lease holder in case of morgaged property against loan.

K. P. Boda (Querist) 08 January 2015 This query is : Resolved
Is it possible for bank authority to evacuate lease holder from the premises in case of owner becoming defaulter in repayment of loan ? What is the remedy available to lease holder ? Please advice.

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Isaac Gabriel (Expert) 08 January 2015
If it had been given as security for the loan obtained by the owner,the banker is at liberty to proceed against notwithstanding anyother alienations including the lease.

B K Raghavendra Rao (Expert) 08 January 2015
The Bank authorities can auction the property, if it is required, in which case only the new owner would be able to vacate you. Your lease amount becomes a liability against the loan defaulter and the bank is not responsible for satisfying the same. However, you may make a claim before the bank or take a decree against the loan defaulter (as money recovery suit) and seek a direction for the bank to repay you the lease hold amount if the bank has excess money in its fold after adjusting the loan amount of the defaulter.

T. Kalaiselvan, Advocate (Expert) 13 January 2015
Agreed, to the extent of the lease amount liability, you may obtain a stay against the landlord or the bank.

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