Land Mortgaged To Bank Can Be Sold In Case Of Default In Loan Repayment By Allotee: Karnataka High Court

The Karnataka High Court ruled that a bank can sell mortgaged property without a non-alienation clause if the borrower defaults on loan repayment. The court emphasized that the absence of a non-alienation clause does not prevent the bank from exercising its right to sell the property to recover the loan amount. This decision came in a case where the borrower challenged the bank’s action to sell the mortgaged property. The court’s ruling clarifies the legal position on the rights of banks to enforce loan agreements and recover dues through the sale of mortgaged assets, even in the absence of specific clauses.