How to buy court attached property?

Originally posted by : DMK Tracker

Hello,I have shortlisted a property and EC reflects a court attachment. When enquired, the decree holder said there was an EP filed against the judgement debtors.

In this case, how can I, the purchaser, proceed -

Q 1. What application to file before the court to get permission?

Ans: You are to satisfy EP and submit necessary documents with application to delete attachment.

Q 2. What is the process now - do I pay to the decree holder or judgement debtor or the court?

Ans: You are to pay to decree holder through JD in the court.

Q 3. If I pay to the decree holder, what to do if the judgement debtors refuse to come to the sub registrar office for signing?

Ans: Seek requisite direction of the concerned Executing Court.

Q 4. If the awarded amount is 30L, but the property is negotiated for 23L... How this should be dealt with? 

Ans: Ask JD to make up deficiency.

Please share procedural aspects and also an indicative of costs, finally to save the purchaser from any legal troubles in the future. 

As above.

How and why are you eager to buy such property ?

In your interest only, my advise (it is not suggestion) to avoid going for such property. It would be better to seek professional services of a local prudent lawyer to avoid any legal issue or other complicacy.

Thanks

You are welcome. It would be appreciated to post progress in the case.

Kumar

Thank you so much. My responses inline:

 Hello, I have shortlisted a property and EC reflects a court attachment. When enquired, the decree holder said there was an EP filed against the judgement debtors. In this case, how can I, the purchaser, proceed - 

- Q 1. What application to file before the court to get permission?

Ans: You are to satisfy EP and submit necessary documents with application to delete attachment.

Follow-up Q: Ok. I assume this is done after making the payment to the decree holder by filing satisfaction memo. 

Q 2. What is the process now - do I pay to the decree holder or judgement debtor or the court? Ans: You are to pay to decree holder through JD in the court.

Follow-up Q: if I pay in the court, and the DHR and JD signs before the court, does presence of JD required before the sub registrar office?

Q 3. If I pay to the decree holder, what to do if the judgement debtors refuse to come to the sub registrar office for signing?

Ans: Seek requisite direction of the concerned Executing Court.

Follow-up Q: is there any specific memo or section involved?

Q 4. If the awarded amount is 30L, but the property is negotiated for 23L... How this should be dealt with? 

Ans: Ask JD to make up deficiency.

Follow-up Q: what if the DHR is fine with the less amount since the property value is not much and that he doesn't want to ask more from the JD?

How and why are you eager to buy such property ?

In your interest only, my advise (it is not suggestion) to avoid going for such property. It would be better to seek professional services of a local prudent lawyer to avoid any legal issue or other complicacy.

Follow-up Q: primary reason is that the offer and location of the property is very good and within my budget. I may not the same type of project at this rate.

Can you tell me what possible issues I might face in future?

I thought if court is involved and I make the payment in front of the court that means it's much more secure than transacting directly with the parties, right? I mean I can always raise issue if the either of the property refuses to come to the sub registrar office for final sign? 

What other issues do you anticipate? 

Thanks again for sharing your thoughts. Will share an update.

Look forward to hear your thoughts on the follow up questions.

Regards

Kumar

Thanks You are welcome. It would be appreciated to post progress in the case.

There is nothing you can do other than to get into trouble by paying any money to buy this property which is under litigation.

It is not possible to get the property tranferred to your name without the current litigation comes to a close by the JD discharging the amount to the decree holder.

You are intending to buy the property at a lesser value, whereas the problem is that the JD has to pay another 7 lkhs to the DH, whatever, he may not be benefited whether you buy it or the DH takes away the property.

Therefore the DH will not file full satisfaction memo if the full amount is not settled, you may be stranded if you pay the part amount.

How about in the following scenarios - as lawyers what advice you'd give to protect the purchaser:-

1. Compromise deed between DHR and JDR where DHR agrees to accept 23L as full n final settlement;

2. DHR signs memo or document that he will not create any future issues with respect to property and JDR.

3. Either withdraws EP or ask court to grant permission to transfer the property in favour of purxhaset directly - pls advice which is better

4. Purchaser gives money directly to the court and request court to do the property registration by summoning SRO or sending the court officer to the registrar office for the transfer

Any other deeds, documents or process that you would suggest that will protect the purchaser??

Please let me know. On the acceptance of above condition, can the purchaser proceed further?

Regards