Loan more than worth of mortgaged property, will other house be sold?

585 votes

If the bank is initiating action through sarfesi act then it might have issued notice under section 13(2) of the act. Once the Account is classified as ‘NPA’, then, in accordance with the procedure prescribed, the Bank will proceed to make a demand under Section13 (2) informing the borrower about the outstanding amount in the loan account and also the consequences. There is a general format to give a notice to the borrower under section 13 (2). The notice under section 13 (2) should substantially comply with the requirements and if the borrower raises a technical objection, those are not appreciated normally going by the precedents so far. Once the Account is classified as ‘NPA’, then, in accordance with the procedure prescribed, the Bank will proceed to make a demand under Section13 (2) informing the borrower about the outstanding amount in the loan account and also the consequences. There is a general format to give a notice to the borrower under section 13 (2). The notice under section 13 (2) should substantially comply with the requirements and if the borrower raises a technical objection, those are not appreciated normally going by the precedents so far.

In your case the other property held jointly by you and your husband is a property that 50% already belonging to you and another 50%as a legal heir, it belongs to you, since the property was not offered as collateral, the bank's action to auction this property can be strongly objected.
Right to property, although no longer a fundamental right, is still a constitutional right. It is also human right. In the absence of any provision either expressly or by necessary implication, depriving a person therefrom, the Court shall not construe a provision leaning in favour of such deprivation."

"In a case where a Court has to weigh between a right of recovery and protection of a right, it would also lean in favour of the person who is going to be deprived therefrom. It would not be the other way round."
For redressing the grievances, the borrowers can approach firstly the DRT and thereafter the DRAT in appeal. The limitation period is 45 days and 30 days respectively

Advocate T Kalaiselvan LawRato

925 votes

Unless your other property has not been shown as collateral security, they can't attach that property. However, the lenders have the right to demand the balance due from the heirs, i.e., yourself to recover their dues.

LawRato LawRato