• Agricultural land purchase which was having case

Sir,
Planning to purchase a Agriculture property which was under court case and same got cleared at District court 6 months back. 

Same property was having Specific performance case ( 1 Crore consideration, 10 lakh paid as advance 7 years back suite dismissed for failure of readiness and willingness)

As per local lawyer can move ahead for purchase and even if earlier party move to high court case will not stand or they will loose. 

Sir
What will be the drawbacks if am purchasing .Heard i might not allowed for sale if they bring stay till case resolved at high court...Few were say I might not allowed to do any cultivation or development like that...

Will there be any chance to loose property in worst case .
Asked 5 years ago in Property Law
Religion: Hindu

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18 Answers

The party may go for an appeal/revision against the lower court judgment. Therefore an agreement to sell must be executed till the limitation for filing the appeal gets over. In case they file the case the agreement to sell should be valid till the pendency and then it should be sold to you.

Don't execute a final sale deed.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

It will be a trouble if HC goes against the lower court order. You need to seek indemnity bond for the same from the seller

Prashant Nayak
Advocate, Mumbai
34599 Answers
249 Consultations

Please wait for some more time or enter MOU with the parties for purchase of land with such terms and conditions as per your convenient to focus trouble free deal.

The case dismissed for default can be revived and heard on merits. 

If order goes against you then you may loose your money and time.you will have to go for appeal and more years to fight cases before the Court of law wasting more money and time over disputed lands.

Pl avoid to go for the deal.

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

The result of an appeal before high court cannot be predicted. 

You have consulted a lawyer who had opined this way which cannot be relied upon. 

Hence you produce the copy of court judgment before another experienced lawyer and get a second opinion. 

You can proceed only if recommended. 

T Kalaiselvan
Advocate, Vellore
90090 Answers
2503 Consultations

1) in the event any appeal is filed and stay is granted by HC case would take over 10 years to be disposed of 

 

2) it is better not to buy the property now 

Ajay Sethi
Advocate, Mumbai
99890 Answers
8153 Consultations

1. IF the Title-Ownership of Property is clear THEN you may purchase property via a proper Stamp Duty paid Registered Deed and you will be entitled to absolute usage of land for your purposes, without any legal reference to anybody, PROVIDED:
a) Nobody has filed any appeal /revision in Court against order that was passed 6 months ago.
b) You take an "irrevocable indemnity bond" from the seller, to indemnify you against any & all futuristic legal disputes or claims or monetary losses arising from sale of property.

2. AFTER above, EVEN IF opposite gets any favorable order, THEN the present purchaser is indemnified against all losses and the Seller party shall be liable to the disputant party and not the buyer party.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

1. See presently there is no case or suit pending against the property also the limitation period to file appeal is over. In case you go ahead for purchasing you may take an Indemnity bond from the seller.

In case any issue of title the seller may agree to pay complete amount back.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Well.  I am not aware of the merit of the Appeal if already preferred. 

Its true that if the court grants injunction then further transfer on this property would be stopped. 

Even if there is no order of injunction then also by rule of lis pendence all the transferees would be bound by the terms of the decree eventuality passed by the court. 

If the plaintiff wins then you would loose the property. So decide accordingly. 

Devajyoti Barman
Advocate, Kolkata
23658 Answers
538 Consultations

There are no chances to loose the property, and moreover its six months and still no appeal in the HC thn you can proceed to buy it

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

1. The basis principle is that if any third party rights qua a property are created during the pendency of a lis then rights so created are subject to the outcome of the lis.

2. You can go ahead and buy the property if there is no order of injunction against the right of seller to create third party rights but the title would be subject to the outcome of the appeal in the High Court.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

Hi 

1) Since it was a suit for specific performance which was dismissed on grounds of Readiness and Willingness, you can choose to buy the property from the land lord. 

2) Also, an appeal against district court order has to be filed within 90 days from the date of decree  passed by the court vide Article 116 of Schedule 1 of limitation act. 

3) So, you can check the high court website to know whether any appeal has been filed within 90 days and if any stay order has been granted in the appeal filed by the appellant. 

4) If there is no stay order by the high court, you can consider it 100% safe to buy the property. 

5) If there is no stay, you can proceed to buy, do cultivation, development etc.  

6) In the worst case scenario, your seller shall be liable to compensate you by way of return of monies along with bank rate of interest. However in the sale deed, you should ensure that an indemnity clause is incorporated. 

Hope this information is useful. 

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

Dear Sir,

There is no draw back and the land is fit for purchase as per your input. 

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

- If the district court has dismissed the  case , then there is possibility to approach higher court as well. However the maximum period of appeal is 3 months from the date of dismissal /cleared of the case. 

- If an appeal is filed and admit by the High Court , then court can grant Stay over the said property , and in that eventuality you may not allowed to cultivate the agriculture land till the final disposal of the case. 

- Further , if the case admitted by the High court , then there may also be a chance to loosing the property as well. 

- Hence, wait some more period , and dont pay for purchasing the same presently. 

Mohammed Shahzad
Advocate, Delhi
15836 Answers
242 Consultations

Lawyer cannot definitely advise whether appeal will survive or not. Advocate can give opinion but not definite conclusion. Don`t rely on blindly.

This is correct that suite can rightly dismissed for failure of readiness and willingness. But In appeal, court may have reverse conclusion about readiness and willingness.

If stay granted in appeal, than you can purchase also. And after purchase, stay granted than you will stuck till appeal not dismissed. 

If in appeal, court set aside the trail court order, you will loose the property and  money recovery will take long time.

Yogendra Singh Rajawat
Advocate, Jaipur
23085 Answers
31 Consultations

Let the period of appeal is over then it would be better to proceed. Until then you can enter into an agreement for sale. 

Swarupananda Neogi
Advocate, Kolkata
2993 Answers
6 Consultations

Going by the contents, it is not advisable to purchase the land with litigation pending.

If aggrieved party prefers Appeal, it may take 10 to 15 years (or more than that going by present situation) time once it is admitted by high court.

Yes, if they obtain stay, it is very difficult for you, as such, better avoid purchasing it.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

Please note it is necessary to look into the documents to provide proper guidance, Without studying those documents it would be improper on my part to offer any opinion in the matter. 

Mohammed Mujeeb
Advocate, Hyderabad
19350 Answers
32 Consultations

If aggrieved party go to high court and got stay on property then you cannot create third party interest by selling on renting the property.

But you can use the property for your personal cultivation l. 

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

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