Please clarify the following with effective ,timely legal solution: A debtor with personal guarantee , disposes his properties , after receiving the legal proceedings from the court of law for the recovery . the property sold hither too not under lien . the same property put under mortgage with other financial institution after the sale is complete of course , the sale is with consideration. effective usage of section 53 of TP act. any clause with the Registration act is use full in these situations come to the rescue of the creditors. any supreme court guidelines/judgements to recover amounts in the similar situations, under section 53 of TP act.
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any other legal solutions to the rescue of creditors from this epidemic.
creditors can file suit to set aside fraudelent transfers made by the debtor
2) the sale has been made after suit has been filed to recover the dues from the debtor
3) under section 52 of transfer of property act any right to immovable property which is subject matter of suit cannot be sold during pendency of litigation so as to defeat the right of the plaintiff
section 52 of transfer of property protects the interests of creditors
Transfer of property pending suit relating thereto. – During the [pendency] in any Court having authority [within the limits of India excluding the State of Jammu and Kashmir] or established beyond such limits] by [the Central Government] [***] of [any] suit or proceedings which is not collusive and in which any right to immovable property is directly and specifically in question, the property 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.
[Explanation – For the purposes of this section, the pendency of a suit or proceeding shall be deemed to commence from the date of the presentation of the plaint or the institution of the proceeding in a Court of competent jurisdiction, and to continue until the suit or proceeding has been disposed of by a final decree or order and complete satisfaction or discharge of such decree or order has been obtained, or has become unobtainable by reason of the expiration of any period of limitation prescribed for the execution thereof by any law for the time being in force.”
the same property put under mortgage with other financial institution after the sale is complete of course , the sale is with consideration.
If the property was already sold by the owner to a buyer, then
the subsequent mortgage by the same owner is invalid and nothing an act with fraudulent intention to cheat the mortgagor for wrongful gains.
The provisions of law what you referred is clear about the position of the buyer, which is reproduced below for your reference.
[53. Fraudulent transfer.—
(1) Every transfer of immoveable property made with intent to defeat or delay the creditors of the transferor shall be voidable at the option of any creditor so defeated or delayed. Nothing in this sub-section shall impair the rights of a transferee in good faith and for consideration. Nothing in this sub-section shall affect any law for the time being in force relating to insolvency. A suit instituted by a creditor (which term includes a decree-holder whether he has or has not applied for execution of his decree) to avoid a transfer on the ground that it has been made with intent to defeat or delay the creditors of the transferor shall be instituted on behalf of, or for the benefit of, all the creditors.
Thus the creditor can initiate a suit for recovery on the above grounds.
any other legal solutions to the rescue of creditors from this epidemic.
The creditor without verifying the genuineness of the title documents have advanced the mortgage amount, however they have options to institute a suit for recovery from the debtor by way of due process of law.