Shantanu Chatterjee (Financial Analyst) 12 November 2010

Property litigation

Dear Sir/Madam,

I am a resident of Gurgaon in Haryana.One and half year back, I purchased a property in low rise building floor colony. I have purchased the property on 2nd Floor. At the time when I purchased this property ,registration of floor was not opened in Gurgaon. Moreover my property was built on an area on 174 sq yard plot area.

I purchased this property from Mrs.Preeti.This property was built by a corporate builder in Oct'2004 and was allotted possession to a person called Ram as original allottee through builder Floor buyer agreement and in Nov'2008 Mr. Ram sold this property to his Mother Mrs. Preeti and the procedure of sale was that on the original builder floor buyer agreement Mrs. preeti's name was endorsed and duly transferred in the books of corporate builder office record and apart from it an agreement to sale was made and duly notarised.

Now in June'2009 I purchased this property from Mrs. Preeti and again the same procedure of sale was followed as it was a floor and registration of floor was not opened by Haryana government.So in the original builder floor buyer agreement my name was duly endorsed and recorded as owner in the official books of the builder office and an agreement to sale was made and duly notarised stating the present selling price and various terms and condition of purchase.

Bank has also approved Loan for this purchase to me and The builder office has issued a letter at the time of taking loan the property is title free and without any litigation. Even now the electricity bill is coming in my name and all the letters from society office is coming in my name.

Recently two months back I came to know from some source that this property is disputed and enquired about the same. The story is that the original allottee of the flat, Mr. Ram has some strained relationship with his wife in June'2008 and anticipating that she can claim the property, Mr. Ram sold this property to his mother in Nov'2008.Now ignorant of the fact that the property has been already transferred to her mother in law, she filed an application for injunction against the said property in the court of law in Dec'2008 as she is claiming that her father has given loan to her husband Mr. Ram to purchase this property and she made party in this case to her husband and father in law.

In Jan'2009 Mr. Ram and his father has replied to court of law that the property has already been transferred to Mrs.Preeti (Mr. Ram's mother) in Nov'2008 before she filed the application i.e. on Dec'2008.so the property is not now Mr. Rams but Mrs. Preeti's who is nowhere a party to the case and moreover they stated that Mr. Ram has repaid the loan to his father in law with interest and vide such and such cheque no.

In March'2009, even after knowing all these things the honourable court has passed a status quo against this property and Party was Mr. Ram and his Father Vs. Rams Wife. and still the order is same.

Now when I came to know about all these things I asked them why after knowing all these things they sold this property to me.The reply I got from them is that since in Nov'2008, the property get transferred in Mrs. preeti's name , so after that Mr. Ram has no rights in this property and Mr. rams wife has filed an application of injunction in the court in Dec'2008 against Mr. Ram and her father in law. Since her mother is nowhere a party also so she is a bonafide Seller and I am a bonafide purchaser, so I am nowhere in trouble.

But I am not getting any satisfaction as court also knows all these things since Mr. Ram already stated all these things in reply application but after that also court has, for the time being passed a status quo against this property in March'2009. I just wanted to know where do I stand in legality and if there is anything that come against me as owner of the property ? Till what extent bank is responsible and shall I inform bank about it right now.

Pls advise further steps if you think I am in trouble since I was planning to sell this house and buy new one but at the same time I don’t want that the person who will purchase this property should face any trouble later on due to this case.

Regards,

Reply Follow

2 Replies

Nu.Delhi.Law.Fora. (Advocate-on-Record Supreme Court of India) 13 November 2010

Dear Querist,

Based on facts, as per prevalent practice in Gurgaon, Haryana then, purchase of property by you in June 2009 from Mrs. Preeti appears to be bona fide transaction but may not be free from any future litigation particularly where seller was mother of Mr. Ram who is a party to such Suit in a Gurgaon Court which Ordered Status Quo in March 2009 and sale transaction in June 2009. that The electricity bills issued in your name and Society correspondences that stands in your name may give you an added equitable relief, if not by law.

Since, factum of court proceedings and inter se disputes were concealed from you during the time of said purchase, your title to the property remains intact till the time any contrary order is passed..

Be little more vigilant and move appropriate application to get yourself impleaded in the said Suit.

Consequently direction may be sought either for vacation of status quo order or seeking relief for deposit by the Plaintiff (Ram & his wife et al) of some amount annually to safeguard your interest in the property.

Trust this would suffice. However, feel free to contact should you think its necessary.

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Shantanu Chatterjee (Financial Analyst) 15 November 2010

Dear Sir,

Thanks for all the help and your prompt response. I just wanted to know, shall I proactively forward an application before the court that I have purchased the said property and came to know about all these litigation and I was ignorant to it or Shall I wait till any legal notice will be served on me?

Moreover since all the no objection letter and free of encumbrance letter of the said property was issued by the corporate builder office to the bank, will they have any role in this case as the transfer was done in builder books of record as of now.

I am worried since I am paying huge interest to bank .Incase if I have to vacate the property then the seller will refund my entire money along with the interest I paid to the bank or not?

Hope you understand as I am in buoyant phase now as I came to know that these types of cases will go on for long time and at the end if Mrs. Ram won the case and I have to vacate the property then definitely I will lose the escalation value of the property and moreover I am not sure also that the court will ask the party to refund me the total sum of interest paid to bank till date along with the principal amoiunt of loan.

What steps basically I should take to come out of this litigation as early as possible.

What role bank will play if I will inform them right now? Pls advise as I came to know that they also do property verification before paying the loan.

Thanks in advance.