Sale deed obtained by fraud and misrepresentation

balaji n (Querist) 23 July 2022 This query is : Resolved
Hi experts,
Please give clarity whether we can approach a court for sale deed which happened in 1990 for which we recently came to know we have been cheated. Below are the facts :
Property Belonged to a person named X, his legal heirs 3 kids, namely A,B,C.

X,A(wife and kids alive),B(leaving behind wife and only daughter) expired before 1980s leaving behind their next gen. C was alive till 2010.

B's wife died in 1970 hence B's daughter(only legal heir, grew up in her maternal grand parents home)

Family property which was subject to three equal share(3 legal heirs namely A(SON) B(SON) C(DAUGHTER) was mortgaged(in 1987,entirely 1.05acres to be specific) by A's family alone without the knowledge of B AND C FAMILY, both family residing at a different place. Not in same place where the suit property is located(approx 70 km away).

Then A's family couldnt repay the loan and when lender was giving pressure to pay and amount with interest or transfer rights for the amount to be paid(Principal and interest), A's family members arranged to transfer the right through a sale deed but never informed B FAMILY and C FAMILY about plan.

Once A's family arranged all procedure for registration they called upon B's daughter(only legal heir to B) for conducting a baby shower function(B was 7 months pregnant at that time). After the function they informed B's daughter that they are going to sell a family property and it requires her signature and appearance before registrar. She obliged to it and signed the documents and she was given Rs.15000 as her share allegedly stating it as equal half. And when she asked why C family(aunt) not present she was told that X has made a will that the properties to be shared only between his two sons and not daughter.

B's daughter was never told about the mortgage transaction which happened in 1987 and the buyer(mortgage lender) actually paid only the balance amount (actual deal between A' family and lender, value determined at different price since they already received a sizable amount during the mortgage and after which interests have piled upon and only balance remaining out of original amount was Rs.15,000(it seems) it was paid to B's daughter stating it is for her share in the property.

Believing this she came back to her husband's place and continued her normal life. In 1991(one year after alleged sale deed) when C came to know about this sale again A's family and lender settled some amount to compromise her since she threatened to file a civil suit.

Right from the beginning the intention of A's family is to cheat the B and C family for their share in the property.

This(mortgage transaction) came to light very recently when there happened a argument between A's family and B's family. After which B's family applied for EC for sold property and realized they were cheated by suppressing the fact that the mortgage(1987) had happened over that property and amount settled on the date of sale(1990) was just a balance amount(left over) of a higher amount(actual property value in 1990 is said to be around 90,000). Since through mortgage A's family already got substantial amount plus interests accrued there upon the balance amount was settled by lender on the date of sale which was shared between A's family and B's family(B's daughter not knowing the fact that the amount is just a balance after deducting principal and interests from the original value of the property). This fact was suppressed with intention to cheat B's daughter, also she was informed that there is a will stating that the property is only for the sons of X and not daughter(C), this was also a willful misguidance to cheat B and C family.

Please advice if a suit can be initiated by B's family to cancel the alleged sale deed(in 1990), sale deed being executed by fraud(paid only remaining amount after deducting mortgage amount plus interests accrued on principal) and misrepresentation(suppressing the mortgage transaction, sale happened only because the lender is pressurizing A's family to either settle the amount with interest or transfer ownership rights of the property) and should be knocked off as void.

Additional Information:
A's family are habitual fraudsters, they sold(in 1986) another family property without knowledge of B's family and B initiated a civil suit for that property in 2017 and won in 2020.

Thanks in advance for all your valuable advices and guidance.

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Quick Summary

This discussion explores the possibility of challenging a 1990 sale deed due to fraud and misrepresentation. The original property owner's family allegedly mortgaged the land in 1987 without informing all legal heirs. Later, one heir's family arranged a sale, paying only the remaining balance after the mortgage and interest, and misleading the other heirs about the property's true value and a supposed will. The heirs are seeking advice on whether a court can cancel this sale deed, which they believe was obtained through deceit and suppression of crucial facts.

kavksatyanarayana (Expert) 24 July 2022
B's family approached the court and won the case. What about C's family? Why did not C impleaded in B's suit?

balaji n (Querist) 25 July 2022
Thanks for your reply, C family duly served but never turned up called ex-parte, orally they confirmed that they are not interested in taking up the case, after C's demise they totally want to disconnect from this family since right from the beginning nothing went smooth with respect to properties

kavksatyanarayana (Expert) 25 July 2022
If A sold the property in which B family and C family have rights can sue him.

P. Venu (Expert) 27 July 2022
Facts posted are disjointed and lack clarity.

balaji n (Querist) 29 July 2022
Thanks for your reply P.Venu. Please tell me in which point you require clarity.

balaji n (Querist) 29 July 2022
Posted all facts completely, sorry I am not professional writer to put it up in a cohesive manner.

kavksatyanarayana (Expert) 05 August 2022
C family has the right can sue him.

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