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Bank is delaying to return security after loan repayment
27-Aug-2023 (In Banking / Finance Law)
i.My parents has taken a loan which has become NPA, due to some litigation developed from the property title. We are trying for an one time settlement for the same. ii.My brother has taken another loan from the same bank mortgaging his parents ancestral property, which has been fully paid and the account has also been closed. Now the bank is delaying to return the property deed because of the loan taken by parents.My brother is by no way attached to the loan taken by my parents. My queries, i. Can bank hold the security for the loan that has been repaid? ii. How to get back the security?
The bank is trying to retain the security under general lien. However, since the parties are different they cannot retain the property. Which bank is this? Depending on that one can decide on the forum to approach for relief.
Helpful?
19+
19+
Adv. Rishabh Kapur
Delhi | 25+ Answers
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No, if your brother has not been a party to the loan taken by your parents, then he cannot be a party for their loan as bank have already secured themselves by the said disputed property. This is bank's right on that disputed property. But the bank legaly cannot link your parents loan to any thing which is not mentioned in the loan agreement between your parents and bank, hence cannot hold your brother's ancestral property in the realm of claim of repayment of your parents loan to which your brother has notbeen a party. It is illegalonpart of bank tohold your brother's property after clearing of account.
2. Give the facts in detail in a notice to bank with request to give documents back as lpan has been repaid. Take help of lawyer for this and after 15 dats ifbank does not react, file a suit for mandatory injunction against bank.
2. Give the facts in detail in a notice to bank with request to give documents back as lpan has been repaid. Take help of lawyer for this and after 15 dats ifbank does not react, file a suit for mandatory injunction against bank.
Helpful?
15+
15+
Adv. Lata Lochav
Delhi | 25+ Answers
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Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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