• Agriculture land purchase in Karnataka

I am planning to buy a agricultural land of 4 acers in karnataka. 

The land was purchased by Mr.X in 1969. 

In 1991, Mr.X executed an unregistered partition deed for the subject land in the name of his wife and 5 children. In the deed it is also mentioned that his son's should get equal share in the property. RTC and mutation was updated, but not registered in sub register office.


In 2004, Mr.X's wife alone sold the subject land to Mr.Y (Mr.Y was minor in 2004, Mr.Y's mother registered the property as minor gardien).

There was 70000 rs loan on the property when Mr.Y purchased the land in 2004. Which is still uncleared till date. The loan was taken by Mr.X's wife.


Now I am planning to buy the subject land from Mr.Y (he is Major now)

Since the subject land was purchased by Mr. Y in 2004, it's been more than 21 years. 

Does Article 65 of Limitation act applies here? 
Can Mr X's five children file a suit against me in future?

Since there is a uncleared loan on the property, can the bank bring stay order ?

Need your valuable suggestions. Thank you in advance.
Asked 8 months ago in Property Law
Religion: Hindu

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9 Answers

x five children can file suit to set aside sale deed executed by mother 

 

2) when land was sold whether children were minor? 

 

3) they can file suit to set aside sale deed within 3 years of attaining majority 

 

4) if they were unaware of sale within period of 3 years of knowledge of sale 

 

5) bank consent is necessary to sell the land 

Ajay Sethi
Advocate, Mumbai
99841 Answers
8148 Consultations

  1. Partition Deed (1991): Since it was unregistered, it's not legally enforceable as a title transfer, even though RTC and mutation were updated. Mr. X’s children may still claim ownership.

  2. Sale by Mr. X’s Wife (2004): She sold the entire property alone, without consent from her children. This may be challenged, especially since the children were given rights in the 1991 deed.

  3. Limitation Act – Article 65: The 12-year limitation for adverse possession or challenging ownership begins when possession becomes adverse. Since Mr. Y is in possession for over 21 years, it could be argued — but only if the possession was open and hostile, which is uncertain here due to the defective 2004 sale.

  4. Loan on Property: The bank can initiate recovery proceedings, potentially including a stay order or auction, unless the loan is cleared.

Recommendation:

  • Avoid buying unless:

    • A proper legal title search is done.

    • A declaration suit is filed for clear title.

    • All heirs of Mr. X release their rights via registered release deeds.

    • The loan is fully cleared and NOC obtained.


Shubham Goyal
Advocate, Delhi
2113 Answers
16 Consultations

It is not advisable to purchase the agricultural property referred here for the following reasons;

The unregistered partition deed is not valid.

Assuming that the partition deed is a resultant of family arrangement, the sale of property by Mrs X to minor is not valid she is entitled for one fifth share alone in the property and not the entire property.

Moreover Y is also a shareholder hence his share of property cannot be sold to him itself.

There's an outstanding loan against the property which has not been discharged hence Bank may initiate recovery action by bringing the property on auction sale.

The other shareholders may file a suit for recovery of their share in the property.

Besides, on scrutiny of the property related papers more technical defects can be discovered hence it may not be advisable to buy this property.

T Kalaiselvan
Advocate, Vellore
90043 Answers
2498 Consultations

You can purchase but you need to clear the loan without that you will not get noc from bank

Prashant Nayak
Advocate, Mumbai
34553 Answers
249 Consultations

5 children have not signed the sale deed as sellers but only as witnesses 

 

they were aware of sale .it strengthens your position 

Ajay Sethi
Advocate, Mumbai
99841 Answers
8148 Consultations

This indicates that the though the other children of X were not co vendors, since they have signed the sale deed as witness, they are aware of the sale of property therefore section 65 CPC can be invoked.

But there's a pending loan against the property, this will render defective title to the seller hence you may consult a local lawyer and proceed only if recommended.

T Kalaiselvan
Advocate, Vellore
90043 Answers
2498 Consultations

Yes, the signatures of Mr. X's children as witnesses to the 2004 sale deed do support Mr. Y’s position, as it indicates they were aware of and did not object to the sale at that time. However, witness signatures are not the same as legal consent or relinquishment of rights. Since the 1991 partition deed was unregistered, and they did not explicitly sell or release their share, they may still legally challenge the title in future.

Solution:
Before buying:

  • Get registered release deeds from all five children of Mr. X.

  • Clear the loan and obtain a No Dues Certificate.

  • Conduct a full title and encumbrance check via a property lawyer.

Would you like help drafting a legal query or checklist for your lawyer?

Shubham Goyal
Advocate, Delhi
2113 Answers
16 Consultations

Yes it will strengthen y position as they were aware of the sale. Ideally all should sell their share if they are also legal heirs and coowners. But if it’s self acquired Property of X then only X can execute the sale deed

Prashant Nayak
Advocate, Mumbai
34553 Answers
249 Consultations

- The registration of a family partition deed is not mandatory if there is consent of all the family members a the time of execution of the deed. 

-  Further, if the mutation was in the name of his wife and 5 children then without giving  POA to mother by the children the property cannot be sold by the mother.

- However , as they signed as a witnesses it means that their consent was with the mother , and they have given their approval to mother to sell the property. 

- Further , the bank can file the suit for the recovery of the loan amount within a period of 12 years . 

Mohammed Shahzad
Advocate, Delhi
15821 Answers
242 Consultations

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