kailashnath shastry 11 February 2023

Fate of a mortgaged property

In brief I am posting my question.

A self acquired property was mortgaged to a state financial corporation by father and one of the son (out of 5 son and a daughter) obtained some loan for setting up a print press in another site. The loanee could not repay back the loan amount. The financial corporation seized the printing press assets with its machinery alongwith land where the printing press was functioning and sold it out for recovery of the loan amount. In the meantime unfortunately father also expired.leaving behind the property for all the 6 legal heirs.

After a gap of 20 years the said financial corporation want to acquire the mortgaged during that time on the PLEA of recovery loan amount.

My question is after a long gap of so many years

Is this loaner (lender) Is again legally authorised to seize the mortgaged property when they have already seized the main property and have sold it out for recovery of the loan amount ?

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3 Replies

Sudhir Kumar, Advocate (Advocate) 11 February 2023

whether it was mortgaged?

Dr J C Vashista (Advocate) 12 February 2023

The mortgagor cannot sell the mortgaged property with its appurtinent(s) / other assets for redemption of loan without following due process of law.

The financier can not review the loan amount again after 20 years.

It is advisable to consult and engage a local prudent lawyer for better appreciation of facts / documents, professional guidance and necessary proceeding.

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kailashnath shastry 12 February 2023

This property was mortgaged like a collateral security but the financer has already seized and sold the other land and building with all its assets which were purchased by the loan amount .Now after a gap of so many years they want to seize this mortgaged property(collateral security property) on plea recovery of loan excess amount.

Thanks for your valuable suggestions