Ritesh Rathod (CS) 03 November 2020

Factory Install on Mortgage Property

Dear sir, My Brother in partnership with land owner install factory plant without knowledge that land on which Factory install is mortgage by land owner... Now land owner is not able to repay loan amount..can Bank seal factory? what remedies my bro have in this matter?

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2 Replies

Suri.Sravan Kumar (senior) 03 November 2020

The 1st charge against the property lies with the bank. If the owner fails to repay the loan, your brother can repay the loan on his behalf with the permission of the Bank.

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108) 03 November 2020

1. Bank can legally Seal and Auction of the Land & all appurtenance, by following due procedures of law, to recover its money, without any exceptions or reference as to what work is being carried out on the mortgaged property.

Keep Smiling .... Hemant Agarwal
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