• AGPA holder has sold the property while the court case is active

AGPA holder has sold the property while the court case is active,

My mother ( principal) (Aged 65, widow & sr.citizen), having a 2bhk flat in prime locality in hyderabad, she has given the AGPA registered to a private mortgage loan vendor in the year may 2013 for little money from him for my critical sickness ( Brain tumor surgery).Here she does not have proper knowledge about AGPA registration during that time. ( here the holder is non blood relative, & not a builder/ land owner). ( the AGPA registered is for wrong purpose & illegal).

Later I have recovered from critical sickness and visited a bank in the year Jan -2015, for loan through hypothecation on the same property, then we have got to know about this AGPA registration through the Encumbrance certificate on the property.
We have sent legal notice to the AGPA holder and case is active in the court from May 2015 - till date. Also we have sent letters to SRO & district court requesting not to register the property to anyone else for which I hold the stamped acknowledgments with dates.

Meanwhile from 05 Oct 2016, my mother is missing from secunderabad railway station. we have registered missing case for the same in concerned police station. (we are doubting the AGPA holder).
But recent EC, when we have checked the AGPA holder has executed the sale deed to the third party by representing the principal with out principal's ( my mother's) presence, on 31-OCt-2016.

How it is possible while property case is active in the court and principal of the property is missing, the AGPA holder sold the property to third party and given possession to them with out our notice.

we had recent hearing for the court case on [deleted]. and just they have given the next hearing on [deleted]

Please suggest what the measures & steps need to be taken.
Asked 7 years ago in Property Law
Religion: Hindu

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5 Answers

1) has court granted any stay for sale of property ?

2) did your mother revoke POA before filing case in court ?

3) you have to amend the plaint and challenge sale of property by GOA holder

4) make third party a party to the suit proceedings

Ajay Sethi
Advocate, Mumbai
95197 Answers
7607 Consultations

5.0 on 5.0

1. Do check if there was any order of injunction in for4ce or not.

2.If any order of injunction was there then you can file case of contempt.

3.if not then there is nothing to worry as if you win the case the buyer would be bound to return the proeprty to you.

4.In the meantime make the buyer added as a party to this suit.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
497 Consultations

5.0 on 5.0

1. Did you seek injunction from the civil court, and whether it has been granted? The mere pendency of the civil suit does not preclude the agent from acting in pursuance of the GPA and creating third party rights. Nothing less than an order of status quo or temporary injunction would prevent the agent from acting in pursuance of GPA.

2. Since third party rights have been created your suit, if it is a suit for permanent injunction against GPA holder, has now become infructuous. You are now required to file a suit to declare the sale deed executed by the GPA holder as illegal.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1. Where is it written that the the scheduled property in connection with which a case is pending can not be sold by its owner or his/her authorised person? Our law does not restrain such sale.

2. You were supposed to take an order of Injunction from the Court restraining the AGPA holder in dealing with the said property till the case is disposed of.

3. You shall have to now file a title suit praying for a declaration that the said sale conducted by the AGPA holder during the pendency of the suit is illegal and also praying for a direction upon the regiostrar to cancel the said registration of sale..

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

If the GPA has not been restricted by an order of court to sell the property, he wold have managed the registrar's office and the buyer and had sold this property.

In my opinion he would not have sold the property by following the proper procedures as envisaged in law and instead he would have created a sham sale deed.

However, if the sale of property during pendency of a litigation on the property, then the sale is no binding on the legal owner.

Your mother on he return may implead the new buyer as a necessary party and may file another application seeking to restrain the new buyer from alienating the property or from further encumbering the property in any manner.

T Kalaiselvan
Advocate, Vellore
85398 Answers
2235 Consultations

5.0 on 5.0

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