Third party application for stay of auction of property by the bank


A property development company had mortgaged a set of plots including mine by way of deposit of title deed before completion of construction to a bank . As a buyer. the plot duly registered in my name by the company under a composite sale of land , development and construction agreement and Sale deed for the land area. The property is under my continuous occupation for four years. Payment in full paid by me as per executed agreement direct to the company . For continuous default in remittance / settlement of loan , the bank invoked SARFEASI Act u/s 13(4) against the company and displayed possession notice in my property besides other properties held under DoTD. There is no privity of contract between myself and the bank. Can I challenge the possession and stay of auction of my property by moving DRT as a Third party against the bank . What are the legal remedies to protect my property and cost involved .

Answers (1)


234 votes

Banks finance real estate developers against the security of the property proposed to be developed. As and when a plot is sold, the financing bank will release its mortgage over that particular plot at the time of registration, only if the entire sale proceeds are deposited with the bank. Try to resolve the issue with the promoter and the bank. Legally, the bank has a strong case.


Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

Popular Banking / Finance Lawyers


Advocate Nikhil Singh
Singh & Associates, Hubli
2 years Experience
Advocate Ricky Chopra
Sector - 49, Gurgaon
18 years Experience
Advocate Ricky Chopra
Karkardooma Court, Delhi
18 years Experience
Advocate Bala Janaki
330 Thambuchetty Street, Chennai
34 years Experience

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 Banking / Finance Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or contact a Lawyer of your choice to address your query in detail.

Related questions


"LawRato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."



Related Articles