Unregistered sale agreement - by previous owner
We are from chennai and close to 70 families have purchased residential plots in 2014 from a seller M/s XYZ. We have done the sale deed and received
the patta with clear title and the layout is CMDA approved . In the Year 2016 we received a court notice for case filed
by M/s ABC . M/s ABC claims that they had entered into a unregistered sale agreement with M/s ABC in the year and have paid
a sum of 2.5 Cr .This transaction is also not getting reflected in EC as it is unregistered.
They have claimed for specific performance of the unregistered sale agreement and requested the courts to declare out titles on the plots "null and void".
We have through an advocate filed a rejection petition in the case.
1. What is the likely hood that his case can affect out title on the plots?
2. What are the implications on "we the buyers" due to this unregistered sale deed.
Recently it has come to our notice that there is an other case ( on the same issue )between ABC & XYZ from the year 2016 which is active and is filed in different district court ,
we the buyers have not been made party to this case .
3. Will a ruling on this case have any impact on our original case .Should we also be party to this
case ?
Asked 6 years ago in Property Law
Religion: Hindu
Sir ,
Thanks a lot for the response.
i . The unregistered sale agreement was made in the year 2009 between XYZ & ABC . XYZ issued a PoA in favour of ABC in 2009 and then revoked it in year 2012 due to some differences between them.
ii . XYZ later with the help of a builder converted the agri land as residential plots( CMDA PLots) and then sold to buyers and also provide home loan from reputed bank for the buyers , in the year 2014.( Registered sale deed , with property hypothicated to bank for the loan taken.
iii . A case was filed by ABC on XYZ , claiming for specific performance of the unregistered sale .agreement in the year 2016
iv. The builder saying , that he would help us in this case , appointed a lawyer to represent " the buyers" in this case and filed a rejection petition in the court , in 2017 . He told us that unregistered sale agreement is not valid in court.
v. Now a few weeks back , we have come to know of another case between xyz & ABC in another district court in the adjacent town from chennai , in which we buyers are not party . The builder and his advocate are advising us not get involved in the other case.
1. From the answers given by the learned counsels , i could make out that the even an unregistered sale agreement is used as evidence and could tilt the case in favour of ABC .
2. What are the likely outcomes in this case.
3. What the worst case scenario and how best do we counter it and also the possible remedies available to us .
Thanks a ton for all the advice
Asked 6 years ago