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Kiran (manager)     12 July 2011

Tenancy prior to mortgaged

Hi,

 The tenancy created prior to the mortgaged of the flat to bank, the borrower is absconding and the bank officilas are harressing the tenants to vacate the flat under sarfasie act. Before sanctioning loan the bank was aware the flat is under possession of tenants then also they have sanction loan. What rights the tenants have they have paid huge sums ( Heavy security deposits) to the borrower. Who has more rights Tenants or Bank. Plz give ur valuable suggestion. Will be higly obliege.

Regards,

Kiran 



Learning

 7 Replies

Doveson (advocate)     13 July 2011

U can approach the DRT with the proof of ur stay in that flat. The DRT may direct u to deposit some amount of money. But DRT is the only forum which can now entertain u. Have u got notice under 13(4)? U have to act quickly to avoid forcible dispossession.

Kiran (manager)     13 July 2011

Yes Sir, we got the notice and the bank has taken symbolic possesion. The matter is in the DRT I and we are just getting dates , we are very worried.

Doveson (advocate)     13 July 2011

you must have got the stay na? dont worry. if your tenancy is prior, you are safe. max to max you will have to deposit the rents in the court.

1 Like

swarnam J Rajagopalan (Advocate)     13 July 2011

The tenant can have recourse to the DRT. Under sec 17 of the Sarfeasi Act, any person who is aggrieved by any measures of the creditor (Bank) can approach DRT within 45 days of such action being taken by the bank.  We have moved a very similar petition before DRT, Chennai and obtained a stay.  There are judgments delivered by the High Courts which say that tenancy created before the mortgage, and such a tenant can only be evicted under the due process of law, i.e., by invoking the provisions of applicable tenancy laws. The secured creditor is not prevented from taking symbolic possession, however he has to inform about the subsisting tenancy to the intending purchaser.  In my opinion file an application u/s 17 as soon as possible, since there is a specific time frame prescribed under the section for preferring the application.

1 Like

Kiran (manager)     14 July 2011

Yes Sir the application has been filed in the DRT, we have requested for interim relief. Arguments are yet to start. Sir is there anyway the hard earned money which we have given to the fraud borrower can be recovered coz the the borrower is absconding.  Sir our tenanacy was created eight months prior to the loan amt sanctioned to the borrower. Kindly give ur valuable sugesstions.

Doveson (advocate)     15 July 2011

why worry? the proeprty is with you. if you want to spend some money, file a suit in the bombay city civil court or whichever court that has jurisdictions as per you address for the recovery of the said amount and then get an attachment warrant against the said property. thereafter, once the bank auctions the same, they will have to pay your money first with interest. if you have some more money with you, get in touch with the bank and ask them to sell the house to you failing which you can block thier recovery proceedings for no end. where are you paying the rents then if the owner is absconding?

1 Like

Kiran (manager)     15 July 2011

Thanks a lot  Sir, God bless you.

Atleast now i am getting some hope.


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