You are at liberty to sell your shop which is occupied by your tenant during pendency of suit proceedings
I want to sell my shop property although my case is still subjudice and no trial has begun since I filed during the last 4 years' time
Will there be any legal dispute if the property is not vacated by tenant during my property sale
Can my filed suit be converted through the new buyer of the shop property
You are at liberty to sell your shop which is occupied by your tenant during pendency of suit proceedings
You should sell the property as is where is basis .
inform buyer about pendency of case for eviction
1) You can file an application under Order I Rule 10 of the Code of Civil Procedure (CPC) to implead (add) the new buyer as a party to the suit.2) The suit will not be dismissed because of the sale. The new buyer will simply replace or be added to the previous owner, and the case will proceed from the stage it was at.
Since your matter is sub judice (pending before a court), whether you can sell the shop depends mainly on what the case is about and whether the court has passed any restrictive order.
If there is no stay or injunction order by a court, you can sell the property but the sale will be subject to the final outcome of the case. The buyer steps into your shoes. If you lose the case, the buyer also loses.
Your position depends on the nature of the case. It is very risky to sell, buyer may sue you for cheating or misrepresentation also.
On the safer side, you may file an application before the same court seeking permission to sell the property and offer to deposit sale amount in court if required.
Since you have filed the eviction case against your tenant for non-payment of rent, your situation is clearer.
You can sell the shop even if the tenant has not vacated, but the buyer will step into your position as landlord and continue the eviction case.
Under Section 109 of the Transfer of Property Act, when a landlord sells the property, the purchaser automatically becomes the new landlord. All rights of the landlord (including eviction case) transfer to the buyer.
Therefore the sale is valid even if the tenant is still in possession, eviction suit is pending and the arrears of rent is also pending.
The case continues in buyer’s name from the same stage. No need to start fresh case.
The case continues in buyer’s name from the same stage.
The buyer must understand that the property is tenanted, the eviction may take time and the likelihood that the tenant may file an appeal also even after decree.
Also please note that the tenant cannot stop the sale. But tenant may delay the proceedings, challenge the buyer’s title and may even demand proof of ownership.
If you do not disclose the pendency of the eviction case, the possession with the tenant and the arrears dispute, then the buyer can later sue you for misrepresentation. So full disclosure in sale deed is essential