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Jayesh Deokar (Advocate)     16 May 2013

Sell of property during the pendency of the eviction suit

Dear Lerned Experts,

 

Please Advise-

 

Can I sell out my house when the eviction suit filed by me against the tenant is yet to be disposed-off by the court? If yes, how? And whether the tenant has any preference to purchase the said property? If no, under what provisions? 

 

The Circumstance of the case are as under:-

 

1. The Property is situated at Aurangabad, Maharashtra.

 

2. There is no Leave & License Agreement between me and the tenant. It was mutually agreed, and the tenant has been depositing the rent to my bank account.

 

3. I have clear title to the property.

 

4. The tenant has also admitted the tenancy.

 

5. My ownership is undisputed.

 

6. The tenant is in possession of property since 2001

 

7. I'm currently residing in Mumbai.

 

8. The eviction suit is filed on the ground - a) that I want the possession of my house for my own residence as I am willing to shift my family from Mumbai to Aurangabad, and I have no other accommodation of my own in Aurangabad; b) that the tenant has changed the user of the property by starting a Beauty Parlour business in my house; c) Also, the rent for the Month of Oct-2010 is unpaid, and despite having sent 3 notices, the same is still unrecovered.

 

9. The tenant has falsely stated in his W/S that I have one more house in Aurangabad. The house so stated by him is actually owned by my father, which is given by him to my brother, who is residing there with his family.

 

10. The case is referred by the court to Mediation. However, the tenant looks no interested in vacating my house.

 

Thank you in anticipation. 

Jayesh Deokar



Learning

 8 Replies

adv. rajeev ( rajoo ) (practicing advocate)     16 May 2013

Yes you have got right to sell the property during the pendency of the suit.

1 Like

MohammedRaffiq Bijapur (Advocate)     16 May 2013

Rajeev Sir I have quite contrary opinion to ur view

However the renancy rules favours Landlord but seeing the pleadings of eviction petition as narrated by Jayesh any alienation would apply rule of lispendence may apply and cause hurdles in proceedings.

1 Like

Jayesh Deokar (Advocate)     17 May 2013

Thank you so much for your valuable and quick responses.

Rajeev sir please guide -  if I have a right to sell the property, do I need to give any notice to my tenant before effecting the sell during pendency of suit?

 

Mohd. Raffiq sir please clarify - As you said, the alienation of prop would apply the rule of lis pendens embodied in section 52 of Transfer of Prop Act, will such alienation be void/ invalid merely because it was effected lis pendens?

And what impact does it have if the person buying the property lis pendens has a complete knowledge of it being a suit property? Will it safeguard me later on against the suit filed by such buyer in the event I fail the original eviction suit? 

LegalArrow ( Advocate Bangalore)     18 May 2013

if u sell the propoerty during pendency, such sale is void by sec 52 of transfer of property act. doctrine or lis pendens will come into play. the right  to sue is a right in personam not a right in rem. thefore the subsequent purchaser will not get the right to step into ur shoe, to continue the eviction proceedings. my suggestion withdraw the suit with liberty to file fresh suit and take refund of full court fee . after sale let ur buyer file fresh eviction suit.

1 Like

LegalArrow ( Advocate Bangalore)     18 May 2013

if u sell the propoerty during pendency, such sale is void by sec 52 of transfer of property act. doctrine or lis pendens will come into play. the right  to sue is a right in personam not a right in rem. thefore the subsequent purchaser will not get the right to step into ur shoe, to continue the eviction proceedings. my suggestion withdraw the suit with liberty to file fresh suit and take refund of full court fee . after sale let ur buyer file fresh eviction suit.

Jayesh Deokar (Advocate)     18 May 2013

@ LegalArrow

Thank you for the explaination and suggestions.

 

However, the following doubts remain in my mind-

 

1. Is it possible to withdraw to suit now when it is referred to Mediation?

2. Assuming the answer to the above question is YES, can withdrawal of suit be made with a liberty to file a fresh suit?


3. Section 52 of TP Act is amended in the State of Maharashtra as -

“52. (1) During the pendency in any court having authority within the limits of India excluding the State of Jammu and Kashmir established beyond such limits by the Central Government, of any suit or proceeding which is not collusive and in which any right to immoveable property is directly and specifically in question, if a notice of the pendency of such suit or proceeding is registered under section 18 of the Indian Registration Act, 1908, the property after the notice is so registered cannot be transferred or otherwise dealt with by any party to the suit or proceeding so as to affect the rights of any other party thereto under any decree or order which may be made therein, except under the authority of the court and on such terms as it may impose.
(2) Every notice of pendency of a suit or proceeding referred to in sub-section (1) shall contain the following particulars, namely:-
(a) the name and address of the owner of immoveable property or other person whose right to the immoveable property in question;
(b) the descripttion of the immoveable property the right to which is in question;
(c) the court in which the suit or proceeding is pending; 
(d) the nature and title of the suit or proceeding; and
(e) the date on which the suit or proceeding was instituted.

 

Does it means that if the tenant fails to register the notice as aforesaid, the doctrine of Lis Pendence would not apply?

LegalArrow ( Advocate Bangalore)     18 May 2013

1. it is possible to withdraw the suit at nay stage, because it is his absolute right to withdraw as provided under 023 r 1. but it is risky to enter into a compromise decree in a eviction suit, due to the compromise decree cannot be appealed agianst. my suggestion dont enter into compromise decree.

2. yes liberty has to mandatorily be sought for, otherwise it wil amount to res judicata.

3. about the mahrastra amendment, it implies that doctrin of lis pendens, that no property shall be encumbered during the pending of a lis.

Jayesh Deokar (Advocate)     20 May 2013

@ LegalArrow

Thank you once again..

 

1. In my case, on what grounds I should seek the withdrawal of suit with the liberty to file a fresh suit? I understand that the grounds should be such as to satisfy the court.

 

2. What are the chances of mine getting refund of court fees? And will I get the full amount of it?

 

3.  After withdrawal of suit, if I execute a sale deed without giving the notice of such sale to my tenant, will it amount to a valid transfer? Or if I give him a notice, will he not move the court to take a stay order?


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