• Is a registered sale agreement valid for disputed property

Hello Sir, a very good evening to you... Sir I have a land from my grandfather and it is disputed and the matter is in court since Year 1975. The matter is still in court and the final decision from the court is pending. But the other party has done registered agreement with some other party to sell their share of land in the year 2014. Sir when there is no final decree or order issued from the court can a person do agreement with some third party to sell that land? Is that agreement valid? I read in Transfer of property act 1882 section 52 that no party can do agreement to sell to third party if there is ongoing suit. It was our family matter and now we are ready to compromise to keep family relations good.  Sir kindly suggest what can be done because our families involved in suit want to compromise and dont want to  sell that land to third party.

Thanking You
Anubhav Kala
Asked 1 year ago in Property Law from Dehradun, Uttarakhand
Religion: Hindu
1. The agreement is not invalid. However the buyer since has bought a suit property he will be bound by the outcome of the suit pending between you two.
2.If you have read section 52 then read it carefully that i prohibits sale during pendency of suit but does not make it illegal..
3. If you want to compromise then make it asap/ If settlement happens then the seller may cancel the agreement.
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
4.9 on 5.0
1) Please clarify whether any stay has been granted by court restraining sale of land ? 

2) if in contravention of court order agreement for sale had been made you can take out proceedings for contempt of court against seller 

3) if no stay granted there is no bar for sale of land by defendant 

4) you wlll have to amend suit and make purchaser a party to the suit proceedings 
Ajay Sethi
Advocate, Mumbai
23354 Answers
1222 Consultations
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1) you have not bothered to reply to queries raised by me 

2) once sale deed is executed title to property passed on to buyer . If you have purchased by regs sale deed seller cannot sell land to third party 

3) it is necessary to pursue the various documents cited by you to advice 

4) if seller has sold land to third party please clarify as to whether 
 buyer willing to cancel the agreement ? 
Ajay Sethi
Advocate, Mumbai
23354 Answers
1222 Consultations
5.0 on 5.0
The power of attorney after the death of the principal is invalid and the power holder cannot sell the property after that.
Ay sale agreement during the pendency of litigation regarding the suit property is invalid, you may move an application under order XXXIX Rule 1 and 2 for injunction restraining the defendant from alienating the property till disposal of suit. 
If the purchaser of the agreement deedis died, his legal heirs can be present in the registrar's office where an application for cancellation of the agreement is moved. 
T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0
1. The agreement could not have been made. However, it seems that you did not seek a stay order against the execution of the agreement during the suit. In a case of this nature we generally seek a stay against the sale or execution of the agreement till such time the case is decided by the court. 

2. If you do not want the property to be sold then the only legal recourse is to seek a stay against the sale from the court. 

3. If the sale takes place you will have to challenge it, which will open another round of litigation. 
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0
1. Unless there is a stay order, agreement for sale can be executed and registered by any side,,

2.  Agreement for sale is not transfer of property, it is an agreement for transfer which is subject to disposition of the court in favour of the seller.
Krishna Kishore Ganguly
Advocate, Kolkata
12131 Answers
233 Consultations
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1. You shall have to see what are the terms mentioned in the said agreement to cancel it,

2. Did the deceased seller had collected any amount from the buyer? 

3. If yes, then the legal heirs of the seller should refund the said advance to the buyer and inform him that the said agreement stands cancelled hence forth,

4. As per the said Sec. 52 of T.P. Act the sale deed is invalid since you can not transfer the litigated property.
Krishna Kishore Ganguly
Advocate, Kolkata
12131 Answers
233 Consultations
5.0 on 5.0

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