I had a friend come to me 6 years ago. He wanted money in exchange of the Title Deed of his property. It was basically a mortgage. He and I signed a sale deed and I paid him 70 lakhs. But I didn't have it registered in any registration office even as of yet. The present EC shows him as the owner of the property. I only possess the title deed. I got to know in the past month from mutual friends that he is selling the property.When I went to him on the 2nd of this month, he says he was forced to sign. The only thing I have is an audio recording of the meeting on the 2nd of this month, in which he says he was forced to sign. It is also recorded that he received money from me for his property. He said "Don't forget that I signed because you forced me to. The money you gave was very less for the property. I'm selling my property by the True Copy that is in my name." Summarising all that is in my favour is: 1. A sale deed with his signature. 2. An audio recording of his in which he admits to having signed but forcefully. But the sale deed was not registered and the EC shows him as the owner. Now, my questions are: 1. Can I file a Specific Performance suit to stop the sale of the property? 2. If not, what other options are available to me to stop the sale and have the property in legal bindings such that it can't be sold? Basically what can I do to stop the sale of the flat? Please help me stop the sale.
1. Well, if you could prove with eye witness that he agreed to sell the proeprty to you in consideration of certain sum of money towards which you paid the said sum of money , the suit of SP lies.
2. Do note to file the suit you have to take plea of sale agreement and not of mortgage.
3.Hence do not refer audio recording which speaks of mortgage and not of sale.
4. Do seek injunction so he may not sell the proeprty to frustrate your claim.
1) issue legal notice to your friend to repay sum of Rs 70 lakhs with interest
2) if he refuses to pay file suit to recover said money with interest
3) seek injunction restraining friend from selling the property
4) suit for specific performance had to be filed within period of 3 years from failure of part of seller the execute regd sale deed
5) Article 54 of the Limitation Act,1963, that the suit for specific performance had to be filed within three year from the date stipulated in the contract or from the date of refusal to perform the contract.
1. A sale deed requires mandatory registration in the office of sub-registrar for the title to be conveyed to the buyer. In your case it cannot be considered a sale as the sale deed was not executed. It is only a mortgage if he deposited the title deed of his property to you in lieu of loan.
2. Now you can rush to the civil court through a suit for permanent injunction to restrain him from selling the property and creating third party rights. Since the mortgage has not been cleared by him he has to seek your permission to sell the property as it is a mortgage by deposit of title deeds.
3. Once he succeeds in creating third party rights it will be difficult to impeach those.
1. you should also file an application before the same court for temporary injunction.
2. this is necessary to stop him to sell this property.
Th unregistered sale deed is not binding and not valid in the eyes of law.
However you may send him a lgal demand notice for the borrowed money stating that he borrowed the same and to evidence the same he executed an unregistered and nominal sale deed of his property by depositing the original title deed of the property with you.
This will make him sit back and think of the liability and its repayment.
You can file a money recovery suit and ask for attachment of his property before judgement and also an injunction to not to alienate the proerty now offered as security for the loan.
