Asked September 08, 2016

House Auctioned without our knowledge

  • 1 Answer

Hi there, My name is Arun. My father has taken a mortgage loan from X bank in the year 2003 by keeping our house master documents as security and we are obliged to pay certain sum of money per month till 2018. Meanwhile, we had some urgency of money and had to take one lakh as debt from a money lender and on his request we did Tanaka on property Xerox papers. We used to pay him interest every month for about 4 years and there after our situation has worsened that we couldn't pay him his monthly interest. On this situation, he approached court and after 8 years court issued our house for auction. We were not informed even by our lawyer that our property is issued for auction because he got bribe from the counterpart. Court, without even enquiring about the original documents of home had conducted auction and later on we were forced to vacate the property on a particular day in the year 2015. Only then we understood that our lawyer had hidden these details and we were helpless as the counterpart has good political background. Since we lost the house, we stopped paying money to X bank from 2015. So, X bank had approached the court in 2016 for clearing the debt since small quantity of auctioned money was left behind with the court. Court without even informing us has used our money and paid the debt of 3L to X bank. Now we may get our master documents back in some days. In this situation is there any way to claim our house back since we are having our master documents of the property? Need some suggestions and opinions. Thanks in advance.

Answer 1

Auction is a method of sale and no sale is valid without an original sale deed. In case of absence of sale deed it is essential that a registrar’s official letter is obtained to ensure the legal possession of such property. Presently in India, the sale of land is completed after 3 steps-

  • Sales agreement. This agreement between the parties is to be done on a Rs. 50 Stamp Paper.
  • Title deed. These are documents sowing ownership and rights, obligations or mortgages on the property.
  • Registration. Since 2000, registration of land has become mandatory for the transfer of any immovable property. The details of the title deed will be transferred the registrar. Additionally, registration in the Revenue Department is also essential for complete transfer of property.
  • Legally, sales agreement becomes binding only after the completion of these steps.

    You can thus, file an appeal challenging the transfer of your property on the basis of photocopied documents, which would probably assist you in retrieving your property.

    However, as it was a court order and you had taken the mortgage by keeping your property as security, and also that you already received and spent the money obtained from sale of the property, the court may direct you to transfer the master documents of the property to the buyer or to compensate the damages caused

    Agree Comment 0 Agrees about 5 years ago

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