• Challenge of GPA

I had bought a land in May 11 from X operating on behalf of Y through a GPA Notorized in Feb 10. Later the title had also been transferred on me in land records. 
In 2013 Y filed a case against me challenging the GPA saying it was executed fraudulently by X at notory's office and did not gave his consent for it. For which Y also got a TI from court that prevents me to use or sale the land until matter clears. 
I've came to know that there has been some major clashes surfaced between X and Y which has coused this development.
My queries are as follows:-
1. Can a Notoriety GPA and registered sale deed concluded in Feb 10 and May 11 be challenged.
2. What is my position in this case.
Asked 4 years ago in Property Law
Religion: Hindu

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9 Answers

You are bonafide purchaser of value as you bought land by registered sale deed on basis of notarised POA executed by Y in favour of X

2) in 2011 registration of POA was not mandatory

3) you have good case on merits

Ajay Sethi
Advocate, Mumbai
87932 Answers
6207 Consultations

5.0 on 5.0

Since it was purchased in 2011 it was not compulsorily registrable as such sale deed executed that.time is valid. You are bona fide purchaser so you have good.merits to contest case. The.burden of proof lies on person who alleges it as such since Y has made allegations it is up to him to prove that the GPA was forged or executed by fraudulent manner if you get his signature admitted in case it will be sufficient for your case.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

1. Since Registration of GPA was not mandatory in your case if the property is purchased through a valid GPA and land is registered in your name then in case it is on the plaintiff Y to prove that GPA is fake but since it is notarized and if his signature are proved to be correct then it will be a valid sale and it cannot be set aside.

Further in.the case you are bonefide purchaser you shall be protected.

In worst of scenario if the sale is set aside on GPA proved fraud then also you will claim against X for recovery of all amount with interest and to prosecute X but that is least possibility in case if Y himself has signed GPA.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. Before you bought the land, what all due diligence did you do to verify the title of the person who sold you the land?

2. did you issue public notice in local newspapers?

3. did you carry out search from the sub-registrar office to check if any third party rights were created prior to the sale of the land to you

4. did you get the title verified through a competent lawyer and obtained title report?

5. did you check the signature of Y as appearing on the GPA and any other identification document of Y like his passport, etc

6. If you conducted all the above and bought land from Y through his GPA holder X, then you are a bonafide purchaser for value without notice

7. It is for Y to show in his suit that his signature on GPA was forged or that X obtained the GPA from him and got it notorised fraudlently

8. you just have to show the court that before you bought the land you did all proper due diligence to verify the title of the property and bought the land for considerable value

9. you should have challenged the TI before appellate court

Yusuf Rampurawala
Advocate, Mumbai
6881 Answers
79 Consultations

5.0 on 5.0

The sale can be challenged in court, but you have a good prima facie case as you've paid the consideration amount yourself, the GPA is also notorized and the title of the suit property is in your name.

If by any chance, Y succeeds in getting the sale deed cancelled, then you can taken action against X was recovery of consideration amount paid by you, alongwith interest and damages.

Siddharth Jain
Advocate, New Delhi
5928 Answers
101 Consultations

5.0 on 5.0

Dear Client,

You should file FIR against X, than police will investigate actual truth, may be due to some differences between X and Y this issue has arise. Once police will verify, that GPA mutually executed by X and Y, suit suit will over or refund from X.

1. Can a Notoriety GPA and registered sale deed concluded in Feb 10 and May 11 be challenged. -- Yes

2. What is my position in this case. -- strong. Bonafied purchaser.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

1. Yes it can be challenged by the so called principal based on the documentary evidences he relies upon.

2. The X who sold this property has to defend your interests, you have to depend on him for the desired relief.

T Kalaiselvan
Advocate, Vellore
78089 Answers
1543 Consultations

5.0 on 5.0

1) NO PROPERTY SALE ON POWER OF ATTORNEY: SUPREME COURT:

No property sale on power of attorney: Supreme Court

Property sales through the common practice of general power of attorney (GPA) will not give ownership title to the buyer.

In a landmark judgment that is expected to send a large number of property owners into a tizzy, the Supreme Court held that the GPA method of immovable property sales is not a valid form of transfer of property.

A three-judge bench presided over by Justice R. V. Raveendran said that property can be lawfully transferred only through registered sale deeds.

"A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property," the bench said, after interpreting various provisions of the law concerning property sales. However, the bench said the judgment will not affect "genuine transactions" under the GPA.

The judgment delivered would have an impact on both freehold and leasehold properties and affect the mode of transfer of property in Delhi and the National Capital Region (NCR) where GPA sales are very common. Even though it can cause some hardship to those who have already purchased property through the GPA, the order will help curb evasion of duties, flow of black money into real estate and also save people from being cheated by unscrupulous owners selling the same property to several people.

The apex court said there can be no mutation of property in municipal and revenue records on the basis of such documents. The bench, however, clarified that its order should not be a ground for disturbing mutations already effected by the Delhi Development Authority (DDA) or any other authority.

But, there is little relief for thousands of people who hold property without mutation as GPA sales can only be treated as existing sale agreements. An application of the order with prospective effect would have protected their interest. The court, though, stressed that it had merely reiterated the well- settled legal position that such transactions cannot be treated as completed transfers.

The court could not make the order applicable with prospective effect as it had not laid down any new law. However, it said that those who had already bought property through GPA before its judgment could use the documents to apply for regularisation of allotments and leases by development authorities. "Nothing prevents affected parties from getting registered deeds of conveyance to complete their title. The said transactions may also be used to obtain specific performance or to defend possession under section 53A of TP (Transfer of Property) Act," the court said.

2) So GPA is not valid document as of now for any further sale deed.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

1. Can a Notoriety GPA and registered sale deed concluded in Feb 10 and May 11 be challenged.

Answer: Yes it can be challenged since the GPA was not registered. The GPA which includes a sale clause needs to be registered;

2. What is my position in this case.

Answer: If the court orders that during the pendency of the case, you cannot sell it, then it would be difficult to vacate the stay order passed by any court.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

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