Can Indemnity clause be exercised?
This query is : Resolved
05 November 2008
situation:
Mr.A defaults repayment of housing loan taken for purchase of a site and construction. The nationalised bank calls for an auction in its premises and sells the site to Mr.X in the auction. Mr.X has paid full consideration for the site but the bank has not yet registered the site in the name of Mr.X even after 22 months from the date of auction. When Mr.X verified the property documents which were with the bank which the bank did not give before the auction the bank did not have all the documents required for registration of the property in his X name. so Mr. X insisted the bank to induct the indemnity clause into the certificate of sale and to provide all the necessary documents required for registration but the bank is just deny Mr.x that they cannot give any documents nor they will induct the indemnity clause. When Mr.X verified a copy of the sale deed of Mr.A which Mr.X received from the bank , Mr.X came to know that the bank officials have released the loan to Mr.A even for construction when there is no construction at all and they are fearing that if they induct any indemnity clause they may be in trouble for any future problems that may araise in the future.
What measures can Mr.X take to get the site registered in his name?
Several requests to various officials of the bank have failed to get any response from the bank.(at the regional levels & h.o.level)
Mr.A defaults repayment of housing loan taken for purchase of a site and construction. The nationalised bank calls for an auction in its premises and sells the site to Mr.X in the auction. Mr.X has paid full consideration for the site but the bank has not yet registered the site in the name of Mr.X even after 22 months from the date of auction. When Mr.X verified the property documents which were with the bank which the bank did not give before the auction the bank did not have all the documents required for registration of the property in his X name. so Mr. X insisted the bank to induct the indemnity clause into the certificate of sale and to provide all the necessary documents required for registration but the bank is just deny Mr.x that they cannot give any documents nor they will induct the indemnity clause. When Mr.X verified a copy of the sale deed of Mr.A which Mr.X received from the bank , Mr.X came to know that the bank officials have released the loan to Mr.A even for construction when there is no construction at all and they are fearing that if they induct any indemnity clause they may be in trouble for any future problems that may araise in the future.
What measures can Mr.X take to get the site registered in his name?
Several requests to various officials of the bank have failed to get any response from the bank.(at the regional levels & h.o.level)
S.Srinivasaraghavan
(Expert)
06 November 2008
1)You should have made proper inspection of documents at the purchase stage itself.
2)You can approach ombudsmen to render justice.
2)You can approach ombudsmen to render justice.
07 November 2008
does the above case fall under the jurisdiction of ombudsmen?
S.Srinivasaraghavan
(Expert)
08 November 2008
It does fall, in my opinion as bank has not given you the appropriate tittle deeds which it is bound by contract. Consult also a lawyer.
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