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Dharmesh Manjeshwar (Advocate/Lawyer)     19 June 2009

attachment by Bank under securitisation act

' A ' obtained loan from a Bank. He mortgaged sale deed of his land with the Bank but did not give original registered sale deed and gave the Bank only a xerox copy and original registration receipt. Thereafter after few years he sold the land to ' B ' without disclosing the loan/mortgage. The sale deed of ' B ' is registered and all land documents such as 7/12, Index II are in the name of ' B ' If 'A ' defaults in repayments, can the Bank attach the land under the securitisation act ?



 5 Replies

A V Vishal (Advocate)     19 June 2009

Why was the xerox copy of the Registered sale deed kept with the bank instead of the original. This gives rise to unnecessary suspicions and the situation has turned out to be tricky.

adv. rajeev ( rajoo ) (practicing advocate)     19 June 2009

Bank cannot attach the property on the basis of the xerox regd., sale deed. 

Dharmesh Manjeshwar (Advocate/Lawyer)     19 June 2009

Well Mr. Vishal at the time ' A ' registered his Sale Deed, there was no computerised systems and the document used to go to Pune for data entry. This used to take a lot of time. ' A ' did not collect the original Sale Deed from the registration office.

It seems odd that the Bank also provided him loan and kept xerox copy of the sale deed as equitable mortgage

Y V Vishweshwar Rao (Advocate )     19 June 2009

The  Xerox copy of  Document which was given to the Bank , appears to be a copy of the Sale  deed before its registration , no registration Number  is on the Xerox copy -

In fact there was a proposal for Creation of EM as per the Sanction letter terms - but  EM is not  created - the Bank can not say that there is EM - However  the EM is not  created - Security Act is applicable only when valid and legally  enforceable  securty /mortgage is created ! 


V.V.RAMDAS (Advocate)     19 June 2009

Dear friend if that is situation,

you might be  knowing that secondary documents or title deeds can be mortgated  in the absence of original title deeds i.e with the certified copies. You procure/obtain a certified copy of title deed from the registraton office and proceed with the legal proceedings , what ever proceeding it may be. one can not escape fraudulently from the cluches fo the law.

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