Though there is agreement of sale with third person and suit for execution of the agreement is pending in Court, the right of workers to recover epf is preferential right. Section 52 of Transfer of Property Act, 1882 prohibiting sale of property in respect of which suit is pending is not attracted here. You can very well participate in auction and bid for the property. The agreement holder can also bid for property. If your bid is highest, you will be get the property. If bid of agreement holder is highest, he will get the property and the deposit by agreement holder with pf will be adjusted against bid amount.
Sale deed, auction, and title
A Sale Deed is Been Executed between an Individual and Trust for buying a Particular Property by Paying an advance in Dec 2015 with a Deed Life of 3 Months. Again in 29 th March 2016 they have executed a Document Extending the Sale Deed for further 11 Months. But Still the Sale has not been Completed. Meanwhile Employees Provident Fund Organisation has brought the Said property in to Auction for the recovery of PF Dues from Entities Owned By The Trust. The Individual who has executed the sale deed has filed an OS against the Trust in 2019 asking them to Honour the Sale Deed. He also has filed a Mandamus Writ Petition in The High Court of Madras Praying for an Injunction against the Auction and the Court has ordered him to deposit the sale consideration with the EPF Dept and further it has dismissed the WP Ordering the PF department to proceed with the Auction and asking the Petitioner Individual to apply with the PF department for getting his deposit back. We are interested in participating in the auction and my query is whethe if we buy the property from the Auction Sale will give us the Rightful Ownership against the Sale Agreement entered between the Individual and Trust.
Asked 4 years ago in Property Law
Religion: Hindu
8 Answers
If you purchase property in auction you would get clear and marketable title to property
2) auction has been conducted as per court order
3) Petitioner is at most entitled for refund of sale consideration from the EPF department
4) I presume no appeal has been filed by Petitioner against HC order
Under which law the auction is initiated?
Need to look at the agreement and WP.
G.RAJAGANAPATHY
High Court of Madras
In my opinion, firstly get the deposit back. Then participate in the auction and in case you get the bid, make the payment within the prescribed time period and the Sale Officer would issue the Sale Certificate in your name which is a rightful ownership. You may get the said Sale Certificate registered with the concerned Sub Registrar on paying the stamp duty and it would become the sale title document.
You may very well participate in the auction. If successful, your title and ownership over the property shall be absolute, as you say the HC has ordered the individual to apply to the PF Dept. for refund of his deposit.
Yes it will give you a rightful possession if it's legally auctioned and possession is given through sale certificate by the banking institutions
`You may please note that the bidding in the auction of purchasing the property is different to that of the sale agreement that you had entered with the original seller/trust.
As per the high court order you can get back the sale agreement sale consideration deposit/advance amount from the PF department, which would settle the amount out of auction amount.
You, as a bidder can enter into the auction bidding for the purchase of the property as per auction procedure/process.
You can acquire the property as a lawful purchaser if you are winning the auction.
Dear Client,
Yes, if the property in Auction is free from all legal liability attached to the property now since the court allowed the auction and ordered PF Department to reimburse deposits, property purchased from the Auction should give the rightful ownership to the property.Importantly, before buying the property at the auction you should check who has the possession of the property, condition of property, title of property. In many cases, while auctioning an immovable property such as a plot, house or apartment, banks have only legal documents or say symbolic possession of the property.
Thanks & Regards
