In 2003 Adv. issued non encumbrance certificate to bank,(by going through Index-II & Photocopy of Deed [provided by the bank]), later on it was found that, the said property was equitale mortgaged to another bank. it is not possible for the lawyer to find out the fake deed where the property is equitale mortgaged to other bank, as he is not a forensic expert. Two Deeds were identically similar. But the bank filed an F.I.R against the Advocate, On the ground of Forgery.can anyone tell-
what was the procedure followed for preparing "non encumbrance certificate" at that poin of time [i.e. on 2003]
any case law supportable to this particular case for quashing out the trial.
a "non encumbrance certificate" is issued by the govt agency and an advocate submits his opinion on the strangth of the facts submitted in the "non encumbrance certificate". if there is any forgery it is done by the govt agency. so the advocate comitted no wrong.
It is very simple. NEC OR NOC is needed to establish title and ownership of the property; that it is not given as collateral security or mortgaged. Banks need security to recover the loan amount in case of default. Banks will scrutinise the documents through their lawyers and visit the property to establish the genuineness. There have been cases where loanee has taken loans against the same property from various banks and all of them are now fighting the battle to recover the amount.