1 Answer
Dear Client,
As per the provisions of the Indian laws, an appropriately executed registered gift deed based on Section 122 of the Transfer of Property Act, 1882, gives you the complete ownership of the property. Given that the personal loan is an unsecured loan, there is no automatic right of recovery, lien, or mortgage on this property for the bank. Hence, the bank has no option but to automatically take possession of your property in case of default. However, the bank may follow the legal procedure by way of a civil suit to recover its dues. In case the civil court passes a judgment in favour of the bank, then it can approach the court for opening execution proceedings. In accordance with the provisions of Section 60 of the Code of Civil Procedure, 1908, in this case, the decree holder can attach and sell the property of the judgment debtor to recover the dues. On the basis of this information and understanding, it is necessary to assert that though it is not in the condition of being seized by your property, it may still be attached in the future. You may wish to negotiate the settlement of the loan agreement or to restructure it with the bank. I hope this answer helps. If you have any further query kindly do not hesitate to contact us. Thank you