AI Overview...
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Mortgage of Land - Land can be mortgaged as security for a loan; in case of default, banks can initiate recovery proceedings, including auctioning the mortgaged property. The bank's authority to attach or auction the property depends on the existence of a valid mortgage agreement and compliance with legal procedures. Kerala Gramin Bank VS Sub Registrar - Kerala, Indian Bank VS Nallam Veera Swamy - Andhra Pradesh, Neel Madhav Mining Pvt. Ltd VS Authorised Officer, Union of Bank of India - Andhra Pradesh
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Unmortgaged Land - Generally, banks cannot attach or sell land that is not mortgaged or secured by any collateral. Their power is limited to the mortgaged assets unless other legal provisions or security interests are involved. STATE BANK OF INDIA VS INCOME TAX OFFICER HIGH COURT OF ORISSA - Orissa
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Legal Authority to Attach - Banks require proper legal authority, such as a valid mortgage or security interest, to attach or sell property. Without a mortgage or security interest, the bank cannot legally attach the land. Initiating attachment without such authority is contested and may be deemed illegal. STATE BANK OF INDIA VS INCOME TAX OFFICER HIGH COURT OF ORISSA - Orissa, Indian Bank VS Nallam Veera Swamy - Andhra Pradesh
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Deposit of Title Deed - When borrowers deposit the title deed as security, the bank gains the right to proceed against the mortgaged property. However, this right is limited to the secured assets and does not extend to unmortgaged land. Urmila Devi VS Debts Recovery Appellate Tribunal, Allahabad - Allahabad
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Special Cases - In cases involving leasehold land or other specific arrangements, the validity of mortgage and attachment depends on the terms of lease deeds and legal compliance. For example, lease deeds may permit mortgaging leased land for development purposes but not for other liabilities. Uttar Pradesh State Industrial Development Corpn. Ltd. VS Oriental Bank of Commerce - Dishonour Of Cheque, Kerala Gramin Bank VS Sub Registrar - Kerala
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Legal Provisions & Acts - Under the SARFAESI Act, banks can attach and sell secured assets if proper procedures are followed. However, they cannot attach assets that are not secured or mortgaged unless specific legal provisions permit. STATE BANK OF INDIA VS INCOME TAX OFFICER HIGH COURT OF ORISSA - Orissa, Kerala Gramin Bank VS Sub Registrar - Kerala
Analysis and Conclusion
Banks can legally attach and auction land only if it is mortgaged or secured by a valid security interest. They cannot attach land that is not mortgaged by the borrower unless other legal rights or security measures are in place. The authority to do so depends on adherence to legal procedures under laws like the SARFAESI Act and the terms of the mortgage agreement. Therefore, land that is not mortgaged by the borrower cannot generally be attached or sold by the bank without additional legal grounds or security interests.
Search Results for "Can Bank Attach the Land which is Not Mortgaged by Borrower"
2018 0 Supreme(Ker) 969 • India - Kerala
DAMA SESHADRI NAIDU
To obtain the loan, they mortgaged over 35 cents of land. On the couple`s default, the Bank started recovery proceedings. ... S.14, took physical possession, too; The T.P.Act- Section.60 deals that "no sooner than the mortgaged property was put to auction ... According to them, this Court`s earlier intervention did not help them, as they had, by then, no money to comply with the conditions ... His frontal....
• India - Consumer
A.K.BHATTACHARJEE, SUNIL KANTIKAR, SIKHARINI DUTTA
of 10.acres worth Rs. 3 lakhs & tractor were mortgaged as security against loan - Complainant had two fixed deposits for benefit ... . 62,000/- - Rs. 80,000/was paid towards repayment of loan & interest till 1994, leaving a balance of Rs. 56,574/- Agricultural land ... lien - Bank is liable to release maturity amount of fixed deposits to Complainant. ... empower the respondent-bank to attach the F.D.Rs. o....
2016 0 Supreme(Ori) 1184 • India - Orissa
I.MAHANTY, BISWAJIT MOHANTY
that he has no legal authority to attach such secured assets. ... initiated by issuing notice under section 13(2) of SARFAESI Act on 25th Feb., 2013, opposite party No. 1 has no legal authority to attach ... Kar, learned counsel for petitioner No. 2 submitted that the properties in question having been equitably mortgaged to the bank,
2014 0 Supreme(AP) 1113 • India - Andhra Pradesh
NOOTY RAMAMOHANA RAO
Court: The learned Senior Civil Judge had come to the conclusion that since item 2 of EP schedule property has already been mortgaged ... to the bank earlier in point of time than the sale was effected in favour of the claimant, the decree holder bank is, therefore, ... Fact of the Case: The appellant-bank instituted suit O.S. ... title deed to the EP schedule property was deposited with the appellant-bank#HL_....
1976 0 Supreme(MP) 100 • India - Madhya Pradesh
C.KONDAIAH, B.R.DUBE
the pawnor was holding possession on behalf of the Bank, An amount was recoverable as arrears of land revenue from the pawnor. ... That situation is not applicable to the case of movable property. ... (1) Land Revenue Code, 1959 (MP) - Ss. 155 (c) and 147 - recovery of amount as arrears of land revenue - movable property in possession ... to attach the machinery of the M/s. ... Company h....
2012 Supreme(Online)(KER) 41317 • India - High Court of Kerala
C.N. RAMACHANDRAN NAIR, BABU MATHEW P.JOSEPH, JJ
Fact of the Case: The respondent company borrowed funds from directors to settle a mortgage debt with a bank to release ... land used for a defunct factory. ... Issues: Whether the funds borrowed from directors for the purpose of discharging a mortgage on property are allowable as a ... to attach and sell the property in exercise of it's mortgage ri....
2005 0 Supreme(AP) 373 • India - Andhra Pradesh
J.CHELAMESWAR, GHULAM MOHAMMED
with loan transaction suit it appears that bank has also sought a decree for sale of mortgaged property - Respondent-bank also invoked ... - It appears from the evidence that certain properties belonging to petitioners are mortgaged with respondent-bank in connection ... and Enforcement of Security Interest act, 2002 - Sections 13, 13 (4) and Under sub-section (2) of Section 13 - Decree for sale - #HL_STA....
2012 0 Supreme(Ker) 215 • India - Kerala
C.N.RAMACHANDRAN NAIR, BABU MATHEW P.JOSEPH
Wealth Tax Act 1957- Section. 2(m) - Mortgaged Debt - Funds borrowed - Whether Funds borrowed from Directors ... borrowed by the assessee from the directors was utilised to discharge mortgage debt in favour of the bank and, in February 1995, ... liability to bank was discharged by releasing the mortgage executed in favour of the bank.....
2012 0 Supreme(All) 2196 • India - Allahabad
DILIP GUPTA
to proceed against the property of the borrowers mortgaged in favour of the Bank by deposit of title deed. ... over the right of the Bank to proceed against the property of the borrowers mortgaged in favour of the Bank by deposit of title ... for sale of the properties mortgaged with the Bank which included Plot No.235-Ka. ... of the ....
• India - Dishonour Of Cheque
P.K.BHASIN
repayment of loan granted to respondent No. 3 by GTB in 1997 ever came into existence—Lease deeds provided that leased lands could be mortgaged ... by lessee for obtaining loan for development of leased land and not for enabling it to pay to UPSIDC on account of premium etc. ... before delivery of possession of land intended to be taken on lease—Since, there was no valid mortgage of lands put to auction b....
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