• Attachment of property through court

I gave 3lakhs to party x. But party x refused to repay the amount.so I attached party x property through court.Even after the court attachment is Still on the property, Party x sold the property that I attached through court to party Y.Is the registration valid? Because still the case is pending in the court.Can the registration of property cancelled through court?
Asked 8 years ago in Property Law
Religion: Hindu

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12 Answers

1) once property is attached any sale executed by the defendants would be void

2) take out contempt of court proceedings against the defendants for having sold property subject to attachment

3) you can amend the plaint and make purchaser party to suit proceedings abd seek orders to set aside sale executed by defendants

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Hi, if the court has passed order of attachment of the property , then it's sale is illegal and not valid .. You can file contempt of court as well as a suit for permanent injuction

Hemant Chaudhary
Advocate, Gurgaon
4632 Answers
67 Consultations

1. Don't worry the sale made at the time of attachment has no validity.

2. So if the decree is passed in your favour the court will allow the property to be auctioned so the sale proceed is used to repay the loan amount.

3. So pursue your suit as usual with renewed vigour.

Best of luck.

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

The said transfer is not valid in light of the transfer of property act which says that a property can not be sold when the matter is sub judice.

So if the property has been sold then you can move a case for cancellation of the registration.

Contact a local lawyer.

Regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

Also you may make the other purchaser as a party to the suit.

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

Yes second attachment is possible and the second attachment is very much valid.

Regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

In this case registration is not valid because at once you got attachment order from the court the property became custodia legis off the court. In this condition this property cannot be transferred or registered without prior permission of the court. According to Transfer of Property Act custodia legis property cannot be transferred. You should prefer an application before the court for cancellation of that registration of sale deed.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

Your attachment order is valid or not shall be decided by the court if it is being challenged by the opposite party either in appeal or revision petition. In your case it has not been challenged therefore this attachment order is valid and enforceable.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

Well,then while the proeprty will be put in auction sale the sale proceeds wouldbe apportioned between the creditors.

The attachment is very much valid and enforceable under the law.

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

your attachment is valid

2) you can seek court orders to set aside sale of property as it is contrary to court orders

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

If the court has passed an order for attachment before judgment agaisnt the property and the defendant has sold the property after receiving a notice from court in this effect, this it can be be a contempt of court.

‘An attachment before judgment is to enable the plaintiff to realize the amount of the decree, supposing a decree eventually made, from the defendant property’. This is the object of the Order 38 rule 5 of The Civil Procedure Code,1908 .

The power given to the Court to attach a deft.’s property before judgment, is never meant to be exercised lightly or without clear proof of the existence of the mischief aimed at in the rule.

You can initiate action as per law in this regard by consulting your advocate.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

One more clarification, the property I attached is already attached by another party for 10lakhs. I attached it for 3 lakhs and the total valuation of the property is 22.6lakhs.My question is that second attachment is possible on the same property.

There is no rule that transactions before suit cannot be taken into consideration, but the object of attachment before judgment must be to prevent future transfer or alienation.

Where only a small portion of the property belonging to the deft. is being disposed of, no inference can be drawn in the absence of other circumstances that the alienation is necessarily to defraud or delay the plaintiff's claim.

The order passed by the court in this regard is very much valid, you can initiate further action as per law

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

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