• Specific Performance decree against third party?

1. Seller sold agriculture land to Purchaser A(me) for Rs. 80L - July 2014. Mutation and registration all complete and clean. Direct sale. no sale agreement. Had no knowledge of any agreement with other parties. 

2. Purchaser B filed a civil suit for Specific Performance of contract against Seller (defendant 1) and me, Purchaser A(Defendant 2) in Apr 2015. 

3. Purchaser B is claiming that he entered a sale agreement in May 2015 with Seller for Rs 1.5 Crore and paid 15 lacs as by Cash. The purchase time is 6 months. Seller is claiming the sale agreement is fake and never received cash from Purchaser B.

4. Seller died in Oct 2015. Purchaser B has added Seller's two sons as 3rd and 4th defendants in the suit. 

Now in Aug 2022, Can I request the learned people to clarify and advise bellow. 
a) As a Second defendant what kind of verdict should I expect? 
b) Will the court hold me responsible for Seller's cheating crime with Purchaser C(if he proves sales agreement to be valid)
c) Can the court decree me to transfer property to Purchaser C? 
d) How can the court protect my interest as a genuine buyer with know knowledge of sale agreement with other parties. 

Thank you
Asked 3 years ago in Property Law
Religion: Hindu

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10 Answers

1) plaintiff  has to prove that agreement for sale was entered into by seller with him and Rs 15 lakhs paid by him 

 

2) you are not responsible for cheating by seller 

 

3) court May order payment of compensation to plaintiff by the seller legal heirs 

 

4) sale may be set aside 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

You can take the support of the doctrine of propriety under Section 48 of TPA, which determines the priority when there is more than one transferee. It safeguards the rights of the first transferee in absence of a special contract or reservation. It describes the essential principle that no person can carry their rights and titles better than himself.

Thus, the transferor cannot harm the rights of the transferee by making any further transactions with the property. He cannot ignore the rights created by the earlier transfer.

 

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

Thanks for your appreciation 

 

has the agreement been signed by the seller . Kindly clarify 

 

it has to be proved that seller has signed the alleged agreement for sale 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

The plaintiff B has included you as a necessary party to the suit. B has, after the death of  the seller, brought in his legal heirs to the suit. If the suit is decreed in B's favour, the court may order registration of the property in B's favour. As you claim to be an innocent, genuine buyer, no criminal action shall lie against you.

Swaminathan Neelakantan
Advocate, Coimbatore
3070 Answers
20 Consultations

A. If you are a bonafide purchaser who has paid valuable consideration to the seller and who had no notice about the previous sale then your sale will not be affected. The claimant purchaser has to prove his prior agreement with the seller 

B. In that case you will have to join the seller in a conveyance deed to convey title to the property in favour of former purchaser. You can then sue the seller for refund of your money with interest. 

C. Yes if the prior purchaser proves his agreement with your seller 

D. If the former purchaser succeeds then you will have to sue your seller for refund of money. The court cannot grant you any reliefs in the suit filed by the former purchaser. You have to claim reliefs in your own suit. 

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

1. Without knowing your defense and the documents you rely upon,  it will be difficult to render an opinion to the subjdice matter, especially when the case is running for over 7 years now. 

2. You cannot be held accountable for the seller's fraudulent activity even if he is proved to have done that. 

3. Read the first answer above. 

4. It becomes your duty to defend your interests in the case to which you have been impleaded as party 

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Your mistakes in the case may turn fatal to your case. 

Hence better understand the seriousness and follow up the case properly. 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

You are not responsible for the acts committed by the seller. You are the owner of the property and you will remain owner untill or unless the seller has not done any agreement to sell prior to the date of registration of sale deed with you. 

Nikhil Gupta
Advocate, Yamunanagar
146 Answers
1 Consultation

a)  it will be on merits. 

b)  If evidence is proved against you then yes

C) it cant force you but can order the said sale deed be void

D) you should show the same through evidence

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

You have to file a civil suit praying for a declaration for cancellation of the previous deed as alleged to be registered by the 3rd party. you can take criminal action also.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

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