shivakumar (individual) 25 May 2015

Bank not handing over original documents of property

Dear Sir/Madam,

I am a bonafide purchaser of a flat through Auction By SBI, bangalore. They have given sale certificate and physical possession. But they have handed over original documents which borrowers ahs deposited with bank for availing loan. When I approached the bank, they said prior to auction , the documents were with DRT. After auction n issue of sale certficate, they have applied for release of documents from DRT. During that process, Guarantors to the loans have appealed DRT to cancel the auction. Everytime bank used to tel me that DRT has postponed judgement. Now from past one month they are telling DRT has posted the guarantors appeal for ORDERS and judge has taken the file to his home for study. My worry is I cant sell the property without parent document. Is there any clause by using which I can sue bank for not handing over property documets

Reply Follow

2 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 25 May 2015

.After auction from the bankers, some formalities the authorised person of bank will go along with you to the registrar office to transfer the property in your name and he will also bound to give you the original title deed of previous owner. make sure before this the bank had verified the property before giving loan by your own sources.b'cose some instances happened many times before.you can also get the undertaking from bank where bank will be bound to pay huge penality if you dont get possession or the previous owner challange bank for wrong proceedings. If previous owner wins the you have to vacate the property n get your money back from bank with very difficulty.

T. Kalaiselvan, Advocate (Advocate) 29 May 2015

Without clarifying the details you should not have entered into the purchase through public auction in such cases. Though you are in physical possession, if the borrower wins the case in the DRT appeal, you may have to vacate and hand over vacant possession. therefore without confirmation about all other details, it was your mistake to buy the property in a hurry. Now you have no other choice that to wait for the case to be disposed by DRTfor the documents to be received as well as for executing a registered sale deed in your name by the bank.