Dini (ase) 22 September 2011

Mortgage

Dear Experts,

I am dini from chennai ,my father has applied for loan in a Private financial company which is in Delhi,the loan is based on the guarantee provided by our guarantor,he has provided his property as a guaranty.The company has sent a Guarantee deed to be registered.When we approached the registration department,they said it is a Mortgage deed and charged 2% of the loan amount as fee and registered it.

But that company says,there is no rule in INDIA to mortgage a Guarantor's property and asks us to cancel the deed.they also say that they will give us a NOC and based on that we Should cancel the deed.But Registartion Department says that to cancel the deed the company representative should come here.But the company says NOC itself is enough to do that.

Can anyone guide me please.

Thanks in Advance

Dini

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6 Replies

jeetendra patel (lawyer) 23 September 2011

WHO WERE THE PARTIES TO THE DOCUMENT YOU HAVE REGISTERED.

Dini (ase) 23 September 2011

The property was mortgaged to the company(in the name of company) not individual person..to cancel the mortgage deed,should the company's representative come to the REGISTRAR'S office or just a NOC from the company is enough to do that? PLEASE GUIDE ME.

kvss.prabhakar rao (Advocate ) 23 September 2011

Mr Dini You can straight away file suit forcancilation of deed because the company registred the same with out knowledge of the party to the document so you can file suit for cancillation of deed. But who is effected party my file suit for cancillation. Consult civil advocate

Regsrds

K.V.S.S.PRABHAKAR RAO, ADVOCATE, RAJAHMUNDRY ( A.P)

G.SUBRAMANIYAN,CHENNAI (ADVOCATE) 24 September 2011

hi dini,

your problem is how to cancel the deed ? my question is who were the parties to the document at the time of registration? who represented from the company side? pls clearly mentioned for what reason the company asked you to registered the deed and cancel the same?

for furhter opinion u can contact me -98417-88286

rajeev sharma (Advocate Ex senior manager law ) 24 September 2011

whether the document is simply a bond of gurantee or a mortgage deed depends on the avermernts msde in the document. It is wrong to say that a third party who stands as gurantor of lone cannot mortage his property as as a security of loan. The finance company may prepare a document of satisfaction of mortage pay suitable stamp duty on it put the seal and signature of its competent authority and may also give a power of attorny in your favour to present the document before registration authority ,then the representative of the company need not to come