Third party rights in SARFASI act

Querist : Anonymous (Querist) 10 February 2011 This query is : Resolved
Hi friend,

i am manoj kumar sahu and i m doing dissertation on third party right in sale. i want to know what is the courts stand on third party rights in case of auction of the mortgaged property. e.i. if the bank has given loan to the party on mistake of his part without investigating the mortgaged asset. and the asset was leased or say belongs to other party then on that situation what is the stand of court.
because the DRT says it is beyond the jurisdiction of it. so friend can u plz let me know wht is the court stand in this point.

Thank u so much

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Raj Kumar Makkad (Expert) 10 February 2011
In case bank has erroneously mortgaged a property which is owned by third party or any third party has any interest therein then bank is liable for the consequences and interest of third party are safe therein. Courts have clear stand on this point.

Amit Minocha (Expert) 10 February 2011
Rightly said, if it is bank's mistake, the bank has to suffer now. Take an injunction order against the bank

Parveen Kr. Aggarwal (Expert) 10 February 2011
If the third party does not claim through the debtor/mortgagor and claims an independent right and his claim is bona fide, he is not bound by the proceedings under the SARFASI Act. Such third party can file civil suit to enforce their legal rights.

Deekshitulu.V.S.R (Expert) 10 February 2011
The Act provides for a remedy in such cases. The only thing is to approach the DRT and in case it refuses to hear you the HC. I think the procedure comes under Sec. 18 or 19 of the Act.

Advocate. Arunagiri (Expert) 10 February 2011
The affected third party can approach the DRT for suitable relief. The Court fee is very less comparing with the court fee to be payable by the borrowers.

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