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2023 July 2023 Legal

Redevelopment – NOC of the Bank for the mortgaged flat – Unique order of the High Court of Bombay to balance competing equities

July 30, 2023 legaldeli

Redevelopment – NOC of the Bank for the mortgaged flat – Unique order of the High Court of Bombay to balance competing equities

Flat in the dilapidated building mortgaged to the Bank for loan – Refusal of Bank to give consent diluting mortgage – Unique Order of the High Court to do justice to the parties

The flat of the petitioner nos.2 to 4 in the building of Nugget Coop Housing Society Khar was mortgaged in 2010 with the Punjab National Bank for the loan given to the petitioner no.1. In 2018, the account of the petitioner no.1 was declared NPA.

In 2020, the Corporation gave notice to the society that building being old and dilapidated is unfit for human habitation.

On 29.9.2021, the society appointed developer for re-development.

PNB did not give NOC to the petitioners for re-development on two grounds that it is NPA account and dilution of mortgage on existing flat.

HELD that it is not necessary to execute a fresh mortgage deed, mortgaged flat no.9 is substituted and clearly identified with new Flat No.A1301, consent of the mortgagors to continue mortgage on new Flat and the developer will transfer instalments of hardship compensation or all other amounts or transit rent to PNB. Written NOC of PNB is not required. Various other directions were also to meet ends of justice.

Writ Petition (L) No.2855 of 2023 – Jaylon Impex Pvt Ltd and others Vs. Punjab National Bank and others

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