Disposed

Sh. Paramjeet Singh and Anr. v. Hdfc Bank Ltd. and Ors.

DRAT2 Jun 2022MISC APPEAL/101/2022

Case brief

AI extract

What is this about?

The Appellate Tribunal entertained an appeal filed by third-party purchasers without any pre-deposit, holding that an unregistered agreement to sell does not confer title under the Transfer of Property Act. The Tribunal declined immediate interim relief against the bank's sale while allowing the reply to be filed.

What did the court decide?

Notice issued to respondents; appeal entertained without pre-deposit; reply directed to be filed within 6 weeks.

Sh. Paramjeet Singh and Anr. versus Hdfc Bank Ltd. and Ors. — Banking and Recovery | DRAT (2022)

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DEBTS RECOVERY APPELLATE TRIBUNAL, DELHI

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Misc. Appeal No. 101/2022 Arising out of S.A. No.173/2021 (DRT-III, Delhi)

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Sh. Paramjeet Siingh & Anr. Vs. HDFC Bank Ltd. & Ors.

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02.06.2022 Hon’ble Mr. Justice Brijesh Sethi

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Present: Mr. Amit Dhall, Ld. Counsel for the appellants

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This matter has been taken up today by me through Video Conferencing in view of the urgency expressed by the learned counsel for the appellants.

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Issue notice to the respondents for today. Notice be served through counsel as well. The matter will be taken up at the end of the board.

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(CHAIRPERSON )

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At the end of the board

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Present: Mr. Amit Dhall, Ld. counsel for the appellants.

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Mr. Sanjeev Pathak, Ld. counsel for the respondent.

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The appellants claim to be a third party having purchased the property in question in the year 2011. Ld. counsel for the appellants states that appellants have nothing to do with the loan transaction which the borrower had with the respondent Bank. Accordingly, he submits that there is no need of appellants making pre-deposit for the entertainment of this appeal.

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In view of the above, the appellants need not make any pre-deposit for the entertainment of this appeal and appeal is entertained without any pre-deposit.

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Page 1 of 3

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This appeal has been filed under Section 18 of the SARFAESI Act 2002 against the impugned order dated 12.05.2022 passed by the Ld. DRT-III, Delhi.

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Ld. counsel for the respondent seeks time to file reply. However, Ld. counsel for the appellants submits that Bank has already sold the property in question and the sale certificate has also been issued. He prays that Bank may be directed not to register the sale-deed and not to hand over the possession to the auction purchaser.

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Ld. counsel for the respondent, on the other hand, submits that the appellants are claiming their title over the property on basis of agreement to sell executed in the year 2011, which does not confer any right or title over the property in question in their favour.

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I have considered the rival submissions and perused the records. It is a settled law that agreement to sell does not confer any right or title over the property in question. Moreover, the agreement to sell based on which the appellants are claiming title over the property is not a registered document.

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The Hon’ble Supreme Court in Suraj Lamp & Industries Pvt. Ltd. vs. State of Haryana & Anr., (2012) 1 SCC 656 , has held that transfer of an immovable property by way of sale can only be by a deed of conveyance (sale deed). In the absence of a deed of conveyance (duly stamped and registered as required by law), no right, title, interest or charge in an immovable property can be transferred as it would fall short of requirements of Section 54 and 55 of Transfer of property Act, 1881.

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In view of the above discussions, prima facie the appellants do not have any right or title on the property in question. Moreover, the appellants have not filed any suit for specific performance in regard to the agreement to sell entered by the mortgagor of the respondent bank. This Tribunal, therefore,

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Page 2 of 3

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does not find any ground for granting ad interim relief at this stage.

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However, nothing stated herein above will tantamount to expression of opinion on the merits of the case.

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Let the reply be filed by the Bank within 6 weeks from today. Rejoinder, if any, within 2 weeks thereafter.

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List the appeal for final hearing on 27.09.2022.

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(CHAIRPERSON)

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ak/PK

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Page 3 of 3

Sh. Paramjeet Singh and Anr. v. Hdfc Bank Ltd. and Ors.

Case brief

What is this about?

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Sh. Paramjeet Singh and Anr. v. Hdfc Bank Ltd. and Ors.

Case brief

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