Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Nitin (Bank Advocates)     14 August 2008

GPA (Notirised) for right in the property

Dear Members,

One of my quarie is as under:

Mr. ABC was the owner of the a property situated in the state of Maharashtra, he have taken a loan to purchase that property. Due to his financial position he wanted to dispose of the property. Unfartunatly, he found one customer for the propery Mrs. XYZ. As Mrs. XYZ was not having any income proof, she was not able to get the loan from bank for purchase of the subject propery.

To resolve this Mr. ABC & Mrs. XYZ entered in the MOU that Mrs. XYZ will pay sum of Say Rs. R to Mr. ABC on signing the MOU and shall take a responsibility to pay remaining housing loan of the said property. Mr. ABC accepted the offer and entered the MOU and handed over the property to her. Mrs. XYZ paid monthly EMI to the bank for few months say for 3 years. These EMIs were deposited by Mrs. XYZ in the bank in the name of Mr. ABC (As this deal was not known to the bank and the Mr. ABC is a valid owner and borrower for bank). Approx after 3 years, Mrs. XYZ absconding from city and stoped paying monthly EMI to bank. Bank pressed hard to Mr. ABC for overdue payments and was hard harrashed to clear the dues. As Mr. ABC was not left with any option but to pay the bank, and it was legal on the part of bank to recover it form Mr. ABC.

Mr. ABC published notice in the paper announcing that he has cancelled the MOU which was entered with Mrs. XYZ and all its related rightes have been taken off on the date of publicatio of notice in the news paper.

After Publicatin of Notice, Mr. ABC paid the bank dues and taken the possetion of the property with all belongings of the Mrs. XYZ.

Now the propert is in possetion with Mr, ABC and he is paying bank dues regulary.

Till date Mrs. XYZ is absconding from the City and address not known. Mrs. XYZ is a lady most wanted for other few banks and individual for loan recovery.

WANTS TO KNOW:

 What are the rights left to Mrs. XYZ, what are the precautions to be taken by Mr. ABC to protect his financial interet and property.

Request your opinion

Quarist.

 



Learning

 1 Replies

D.V.RamaKrishna (Advocate)     14 August 2008

Nitin,


Except the point that as per the MoU the loan amount has to cleared by Mrs.XYZ, it is not clear whether the said MoU has created any transfert of title to property from ABC to XYZ and if it has been duly registered.


Now coming to the point that the loan was taken in the name of ABC himself, it shows that the there was not transfer of title and that ABC has undertaken to repay the loan. In such a case it is bounden duty to repay the loan and after the repayment of the loan the property would be released. The only option left to you is if at all XYZ comes back, you can press for repayment of the amount taken by her in your name. Moreover you can file a criminal case of cheating against XYZ.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register