Recovery of money
7 months ago
Lessor and lessee mada an lease agreement for 11 months.
Lease period eventually expired but the lessor did not return the lease amount and was not able to contact the lessor.
In later period of time the lessee came to know that the flat was on bank loan and the loan amount was not payed by the lessor. A notice of seizure was stuck on the flat by the bank .
What are the legal remedies
A.Dear Client,
As an ex-lessee and third party, you have no role to play in the matter because the lessor is liable for repayment of his bank loan and on default, the Bank has initiated its routine procedure for recovery of loan by attachment of collateral security assigned by the borrower against the loan. Moreover, when a property is assigned or mortgaged as collateral security against a Bank loan, the borrower cannot even sublet the said property to any third party in terms of the loan agreement executed by the borrower with the Bank to avail the loan. So, you have to vacate the premises once a notice from the Bank is affixed on the wall of the said flat otherwise you have to face legal consequences for unauthorised occupation of the said hypothecated property.
As an ex-lessee and third party, you have no role to play in the matter because the lessor is liable for repayment of his bank loan and on default, the Bank has initiated its routine procedure for recovery of loan by attachment of collateral security assigned by the borrower against the loan. Moreover, when a property is assigned or mortgaged as collateral security against a Bank loan, the borrower cannot even sublet the said property to any third party in terms of the loan agreement executed by the borrower with the Bank to avail the loan. So, you have to vacate the premises once a notice from the Bank is affixed on the wall of the said flat otherwise you have to face legal consequences for unauthorised occupation of the said hypothecated property.
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