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SelvaMurugan (Lawyer)     07 June 2013

Consumer court jurisdiction - fraudalant sell by bank

I filed a consumer case for damages for the following complaint. My client participated in a private bank tender (auction of a property under SARFAESI Act), (The tender ad was published in a daily newspaper by the bank) and my client became a successful bidder in the tender. In the mean time my client enquired the bank about the property regarding the encrumbrance, the bank told my client that the property have a clear title, on believing the words of the bank my client participated in the tender and became a successful bidder. after paying the full amount to the bank, they issue the sale certificate to my client. with that sale certificate my client went to registration office to register the property in his name, but the registration office told my client that particular property was acquired by the tamilnadu government (Tamilnadu Housing Board) under land acquisition act, so it cannot be registered or sale by any individual person. my client was shocked to hear this and came to know that the bank was cheated my client and collected a huge amount from my client. The private bank has committed a criminal offence under IPC, so we are ready to file criminal case against the bank for cheating my client by sold a government acquired property. In the mean time i sent a notice under consumer act to the bank and request them to refund my client’s money with interest which was collected by the bank by sold a government acquired property to my client and also claim damages to the bank for cheating my client, but the bank sent a normal counter reply notice and denied to refund the amount. so i filed a complaint in the consumer court. the bank side counsel challenging my complaint that the auction conducted under SARFAESI Act and so consumer court have no jurisdiction to take this complaint and also bank side counsel countered my client was not a account holder of the bank, so he is not a consumer, so this complaint must be dismissed. I submit my argument that the bank sold the property to my client by collection a huge amount and issued a sale certificate and bank hold my client’s money till now. so as a buyer my client will became a consume and he have the rights to file a complaint in the consumer court to return back my client’s money with interest and he also have the right to claim damages in the consumer court. The consumer court Judge request me to submit rulings and citation how is it maintainable before this consumer court. Coming Monday i have file the ruling for this.
So kindly help me whether my client have the rights to claim damages and have the rights to get refund with interest from the bank before the consumer court. kindly provide some important rulings to succeed my consumer case.
waiting for your replies dear friends.


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 1 Replies

ravi kiran (incharge projects)     18 August 2015

Now I am in similar problem like you, I purchased property (open plot)through auction and on the day of registration the SRO informed that there is case pending on these survey no. so the SRO kept hold on registration,

I dont know what I have to do. Please let me know if you have any solutions


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