Sayed Maqsood Ahmed 02 December 2023

can a bank seal the flat for non-payment of loan

dear learned advocates

my sister and her son took a loan of Rs.29 lakhs from a bank. But both didn’t pay any instalment so far.

can the bank seal the flat. what's the legal provisions.

appreciate your valuable legal view point

thanks in advance for your quick response

Best regards

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Quick Summary

This discussion explores whether a bank has the legal right to seize and auction a flat if loan instalments are not paid. It clarifies that if the property was used as collateral for the loan, the bank can initiate recovery proceedings, including attaching and auctioning the flat to recover the outstanding amount. The conversation also touches upon the scenario where a borrower has multiple loans from the same bank, with one account becoming Non-Performing (NPA).

4 Replies

kavksatyanarayana (subregistrar/supdt.(retired)) 02 December 2023

The bank may auction the property as per procedure.

T. Kalaiselvan, Advocate (Advocate) 03 December 2023

If the loan was granted on the collateral strength of the immovable property, then the bank can very well proceed with the recovery suit by attaching the property and sell it thorugh auction to adjust the outstranding amount

Sayed Maqsood Ahmed 03 December 2023

Many thanks sir for your valuable legal advice

Best regards

anil yadav 21 October 2024

I have 2 home loans, I am paying EMI of one and not of the other, will the bank seal both my flats, both are from the same bank, one is going proper but the other one has become NPA