• 3 years Law of Limitations in property disputes

4 acres of farmland sold by POA. Three sale deeds created.
Three joint owners of land. POA himself had a third share. POA understated real value of land by entering only the Sarkari or Circle rate in the 3 sale deeds. POA steals a lot of money and does not reveal the bazaar rate he had sold land.

The first Sale deed was dated 25/03/2022

The 3 year law of limitations applies.


Do I have to file a legal case in a court before 25/03/2025 in order to challenge the sale deeds due to fraud and theft?

If I make a complaint to the NRI Commission Punjab before 25/03/2025 do I satisfy the 3 year limitations law. Will this be enough to satisfy this law or do I have to go to court?
Asked 10 months ago in Property Law
Religion: Sikh

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13 Answers

Don't know how many times this question is asked in different ways

The poa must have not only sold the property but also handed over possession to the buyers in the 3 sale deeds

So if you ask the relief of restoration of possession aside from a declaration that the sale deeds are not binding on you being perpetrated by fraud, then limitation period would be 12 years and not 3 years 

The limitation period would run against you from  the date when you acquired knowledge about the fraud 

Yusuf Rampurawala
Advocate, Mumbai
7902 Answers
79 Consultations

You have to file suit within period of 3 years to set aside sale deed ie by 25/3 

 

mere filing of police complaint is not sufficient 

Ajay Sethi
Advocate, Mumbai
99856 Answers
8148 Consultations

It would be 3 years from date you became aware of fraud 

 

however better to file suit by 25/3 

Ajay Sethi
Advocate, Mumbai
99856 Answers
8148 Consultations

The three years limitation is for filing the case in the court to nullify the sale deed and lodging a complaint with NRI commission in India will not be  considered as action taken within three years. 

As a matter of fact you have to prove it with documentary evidences for the alleged fraudulent act while selling the property by the POA, mere hearsay information is not sufficient to file a suit to set aside the sale deed. besides since you are one of the Principals you are liable to accept the execution of sale deed by the POA done on behalf of the principals especially when the sale deed was executed at the engorgement rate.

You are required to possess authentic evidences to prove your allegations. 

T Kalaiselvan
Advocate, Vellore
90057 Answers
2499 Consultations

The limitation period will start from the date of your knowledge 

T Kalaiselvan
Advocate, Vellore
90057 Answers
2499 Consultations

The period of limitation would be calculated from the time you became aware of the execution of the sale deed with the help of the power of attorney. So, you still have time to Get the case drafted and filed in the court having competent jurisdiction.

Filing a complaint to the NRI Commission of Punjab can be done parallel with the civil suit.

Siddharth Jain
Advocate, New Delhi
6617 Answers
102 Consultations

The period of limitation will be calculated from June 2024. If you Can prove the same

Siddharth Jain
Advocate, New Delhi
6617 Answers
102 Consultations

  1. Though limitation start of run from the date of knowledge of cause of action, it is safer to file suit for cancellation of sale deed within three years of execution of sale deed.
  2. Under Indian Stamps Act, 1899 registration of sale deed on payment of government rete is not permitted when the commercial rage is higher. The  Sub-Registrar is also colluded with POA.
  3. You can also add Sub-Registrar as party to the
  4. You can file criminal complaint against Sub-Registrar under Section 81 and against POA and purchasers under 82 of Registration Act.
  5. No need to give any notice to Sub-Registrar for filing criminal complaint .
  6. POA made a false statement regarding rate of land under Section 82 (1).
  7. Purchasers have abetted the said offence under Section 82 (d).
  8. Sub-Registrar has incorrectly registered the sale deed causing loss to you.
  9. There is clear law laid down by Supreme Court on this matter.

Ravi Shinde
Advocate, Hyderabad
5134 Answers
42 Consultations

Limitation period commence from cause of action or from date of knowledge. so in your case limitation would commence from June 24. 

Siddharth Srivastava
Advocate, Delhi
1551 Answers

In cases of fraud, the three-year limitation period under the Limitation Act, 1963 generally begins from the date of knowledge of fraud rather than the date of execution of the sale deed. Since you became aware of the fraud in June 2024, you may have three years from that date to initiate legal action, meaning you could potentially file a case until June 2027. However, you must provide evidence that you only discovered the fraud in June 2024.

Simply filing a complaint with the NRI Commission Punjab may not be sufficient to satisfy the limitation law, as such commissions are generally advisory bodies and do not have the power to adjudicate title disputes or cancel sale deeds. To properly challenge the fraudulent sale, you must file a civil suit in the appropriate court seeking cancellation of the sale deeds under Section 31 of the Specific Relief Act, 1963 and a criminal complaint for fraud, breach of trust, and misappropriation of funds against the POA under the Indian Penal Code (IPC), 1860.

To safeguard your legal rights, it is advisable to file the necessary court case as soon as possible rather than relying on the commission’s complaint process. You should also consider filing a police complaint against the POA for criminal misappropriation of funds.

Thanks and Regards,
Advocate Aman Verma
Legal Corridor

Aman Verma
Advocate, Delhi
504 Answers


Understanding the Limitation Period in Your Case

  1. Limitation Period for Challenging a Fraudulent Sale Deed

    • Under Article 59 of the Limitation Act, 1963, the limitation period for cancellation of a fraudulent sale deed is 3 years.
    • The starting point of this period depends on when you became aware of the fraud.

  2. When Does the 3-Year Period Start?

    • If the fraud was concealed, the limitation period starts from the date you discovered it (June 2024 in your case).
    • Since you became aware in June 2024, you have until June 2027 to file a case.
    • However, you must prove that you genuinely discovered the fraud in June 2024 and not earlier.

  3. Does Filing a Complaint with the NRI Commission Stop the Limitation Clock?

    • No, filing a complaint with the NRI Commission does not extend or satisfy the limitation law.
    • To protect your rights, you must file a court case before the 3-year period expires (June 2027 based on discovery date).


What You Should Do Now


  1. File a Civil Suit for Cancellation of Sale Deed under Section 31 of the Specific Relief Act, 1963 in a competent court.

  2. Include a Fraud and Misappropriation Claim against the POA.

  3. Request an Injunction to prevent further transfers of the land.

  4. File a Police Complaint for Criminal Breach of Trust (IPC 406) and Cheating (IPC 420) against the POA.


Conclusion

  • Since you discovered the fraud in June 2024, you have until June 2027 to file a court case.

  • Filing a complaint with the NRI Commission will NOT stop the limitation period.
  • You must file a case in court to legally challenge the sale.



For detailed, personalized advice, consider a phone consultancy. Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes of your time to write a review, it would be greatly appreciated and bring immense happiness to read it. Thank you. Shubham Goyal.

Shubham Goyal
Advocate, Delhi
2118 Answers
16 Consultations

If both parties have knowledge of sale deed on same date then yes otherwise date of knowledge of party challenging the deed

Prashant Nayak
Advocate, Mumbai
34569 Answers
249 Consultations

- The 3 years limitation can be run from the date of knowledge/aware of that cheating and fraud 

- Further, hiding the correct market rate is also challengeable for the cancellation of the sale deed. 

- You can lodge a complaint before the police and higher official against that concealment of facts and cheating

- Further, you can also file a Declaration suit for the cancellation of the sale deed. 

Mohammed Shahzad
Advocate, Delhi
15821 Answers
242 Consultations

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