• Sale of open plot

We have purchased a plot 500yds in hyderabad city 10yrs ago.
It is currently in dispute with the govt of telangana regarding road laying.
We currently have abuyer who has come forward to purchase the plot .
We have been suggested to make the sale deed with out mentioning the purchaser regarding the court dispute.
We are in dilemmma as we have been offered a good price for the pt and would not want to let go .
We would like to know what the law suggest /legal implications if we proceed with the deal (without mentioning the dispute part to the purchaser).
Kindly advice what the law suggests.
Your help is appericoated.
Kind regards
Asked 7 years ago in Property Law
Religion: Hindu

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3 Answers

1) dont suppress material facts

2) if you sell the plot and subsequently purchaser finds out about pending court case he would sue you

3) there is an indemnity clause in sale deed wherein seller indemnifies purchaser in respect of any claims made

4) you would have to refund the principal amount with interest

Ajay Sethi
Advocate, Mumbai
95168 Answers
7604 Consultations

5.0 on 5.0

If you conceal the factum of the pendency of litigation with respect to the property that you intend to sell it will amount to cheating for which you will be liable to be criminal prosecution apart from refunding the sale consideration to the buyer with compensation if he goes to court. If a seller suppresses any material information with respect to the title of the property for ex.the pendency of litigation, he commits cheating and criminal breach of trust which are penal offences.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

now the concerned property became a suit property because it is disputed in a civil suit. there is no bar in law to transfer of suit property but you have to fallow a procedure i.e. to get permission of the court before transfer of suit property because if suit property is transferred in the mean time then order/judgmet passed by the court will become infructuous due to change of party in the suit.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

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