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)

280 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.

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