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Ravinder Sood (Querist) 03 December 2009 This query is : Resolved
A mortgaged propery with bank by depositing title deeds.Thereafter exchanges it with B. B sold the property to C.C raised construction by spending huge amount. Bank initiates recovery proceedings under securtisation act.Proceedings before debt recovery faild. C compromises with bank and pays certain amount to bank. Remedy of C against B?
whether entitled to only sale price or amount paid to bank under compromise and expenses incured in legal proceedings ?

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N RAMESH. (Expert) 03 December 2009
At the out set, "A" has committed fraud by exchanging a mortgaged property and by not informing "B" about mortgage and by not getting approval from the bank.

It is to be seen whether the "B" has bonafidely exchanged the property with "A". Then, C and B can join together to sue against "A" for reimbursement of the amount paid to bank with damages and costs.

If "B" has sold the property with full knowledge about the mortgage, he can be sued for reimbursement of amount paid to bank, for damages and for costs.