Loan default by Builder, Please suggest whether DRT or Civil Suit?

500 votes

No, moving the DRT would not be appropriate. SARFAESI Act is a special act which excludes the jurisdiction of civil courts and also DRT. However there is a remedy for you under the SARFAESI Act. You can file an appeal under Section 17 to seek appropriate reliefs. Please let me know if the Bank has issued a notice under Section 13 to the builder? If the notice has been issued and the builder has failed to repay the loan, the Bank can take action under Section 15 and seek to auction this property. If that stage is complete, then it is ripe for you to file an appeal under Section 17 of the Act and apply for a stay on the auction. I see merits in your case. However I would like to see the relevant papers. Please do get in touch with me regarding that.
Apart from the above, I may add that you can seek reliefs - both civil and criminal against the builder. Under the builder buyer agreement there would be dispute resolution clause which you can invoke and seek compensation. Further, you can file criminal proceedings for fraud, cheating and breach of trust. I can advice regarding the same too.
Regards

Advocate Shikhar Khare LawRato

639 votes

Yes you may move the DRT to get a stay on possession of the property and you have a good chance in that regard subject to the conditions that the DRT may impose on you. At the same time you should file a criminal complaint against the builder for having deceived you into buying a mortgaged property

Advocate Rajat Joseph LawRato

688 votes

Dear,

1). Your first and immediate step is to file objection against the auction in DRT.
2). Simultaneously move application for stay against Auction in the High court.
3). File cheating complainant against the builder and other related people.

It is better you visit personally to discuss further on this matter, without my observation of the related documents no further advice can be given.
Thanks.

Advocate Aditya Sharma LawRato