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shivkumar (proprietor)     17 September 2010


This is to inform that I have purchased a commercial property from a person 'X' who had in turn purchased the same property from a builder(1st transaction of the property).The person X had informed me that the original title deed of the above property has been lost/misplaced and we had executed sale deed without the original title deed. I had verified the title of the property and have also checked for the encumbrances on the above property from the concerned registrar office and found that the property was clear.Furthur I had also issued caution notice before the execution of sale deed in 2 leading local newspapers regarding the purchase of the property and had not received any objections. Recently a co-operative bank has claimed that the person X had borrowed loan from the bank by mortgaging the above property.The bank and the person X had executed a equitable mortgage deed(unregistered) for the above loan. Now the bank is demanding the possession of the property to sell the property.Kindly inform me what to do.


 5 Replies

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     17 September 2010

1.  Typically, no sale deed should be executed without verifing and inspection the original sale deed (original title deed and chain of subsequent deeds, if any).  It is grave risk to buy unverified properties.


2.  Unregistered mortgage deed, does not have much legal value.  Try to obtain the certified copy of the  "equitable mortgage deed"  and check each and every clause.


3.  Mr. X, might have played a fraud, by selling the commercial property,  which he earlier had mortgaged with the coop bank.  Ask the coop bank, if the "original title deed"  is lodged with the bank, as a mortgage.


4.  Possession of the property should not be parted to the coop bank,  unless there is a court decree.  Depending on various parameters,  a criminal complaint should be immediately lodged with the local police station (or with the EOW)   against Mr. X, for the  purported "fraud",   or a private complaint case may be filed with the local MM Court.


Keep Smiling .... Hemant Agarwal

V. VASUDEVAN (LEGAL COUNSEL)     18 September 2010

Mr. Hemand Agarwal is correct. The cooperative society has right against you and if the demand is writing, respond with all the documents. It is for the society to lodge a complaint with the police and recover the money. The failure is on their part to have registered the mortgage and you will not be affected, having exercised due diligence and published advertisement. 

Sri Vijayan.A (Legal Consultant)     19 September 2010

  1. We cant say that the bank is in fault because of the non-registration of mortgage deed.
  2. Equitable mortgage also have weitage
  3. You can have an escape that you had published the fact before purchasing, otherwise teh bank initiate criminal action against both the seller and the purchaser
  4. Immediately, lodge a criminal complaint against the seller

Vinoba (Advocate)     20 September 2010


I go by the experts answers.  All the experts are correct in their own sense.

L. Vinoba



Adv. K.S.A.Narasimha Rao (legalquestadvisor@gmail.com )     22 September 2010

Dear Shiv Kumar,

Please try to identify if any other properties available to "X" for taking attachment of the same for recovery of amount paid by you and also file a private criminal complaint against "X" .

Please do join the proceedings before the co-operative Registrar or concerned court where you can file objections for delivery of possession of property you hold. In the said circumstances, the Bank will also register a cheating case against the borrower of selling without notice to the Bank.

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