Hello Experts,
In the year 2003, i have purchased a flat in chennai through a builder, the builder has got a power of attorney for selling the land which was purchased from one mr kuppuswamy. i purchased the flat by taking loan through a nationalised bank. the legal adviser of the bank at that time stated to the bank that the land is free of encumbrance and have clear marketable title. but recently we came to know the land owner mr kuppuswamy owes some Rs. 10,00,000/- to a company "X". and mr kuppuswamy didn't paid the money back to the company. this was happened in the year 1997.
The company has approched hight court of chennai and got an injunction in the year 1999. the court ruled in favour of the company and ordered mr kuppuswamy to repay the amount with interest.. but till date he has not cleared the amount to the company and the case is moving from one court to other. one of the courts in the year 2004 and 2010 attached the properties of Mr kuppuswamy to Company "X". unfortunately the land (total 16 Flats constructed in the land and 16 induvidual flats owners are there) which was purchased from my builder was also attached.
my question is the land which was purchased from Mr kuppuswamy was having clear marketable title and the said land was never mortgaged by him and also sold out by mr kuppuswamy in the year 2003. My contention is that the land can be purchased because there is no encumbrance on the land. but how come the court has attached the property which is free of encumbrance. Since Mr Kuppuswamy has already sold the land to the builder and the land is no more in the name of Kuppuswmay, whether i can defend the case stating the same to the court.
Please advice me with your legal opinion to clear this hurdle.
