• Creditor's insolvency petition

Respected Sir/Madam,
                                    I have purchased a house from two brothers by raising LICHFL loan. The first owner felt that they sold the house for less consideration and giving trouble by asking extra money. Before I purchased the house there was a pending suit of first owner for recovery of Rs 15,000/- loan amount which I don't know. Before three months i.e on 85th day I have received a Creditor's Insolvency notice stating that my house sale transaction is null and void as the first owner has indebted of Rs 5,00,000/- The second owner has no debts. The two owner are not contesting the case. I only contesting the case. I am paying the loan installments regularly. 
Is my sale transaction is null and void?
They didn't add the LICHFL as a party. Is the LICHFL necessary party in my case?
Are there any judgements which help my case?
Kindly help me Sir/Madam.
Thanking you very much.
yours truly,
Prakash.
Asked 11 months ago in Property Law from Kurnool, Andhra Pradesh
Religion: Hindu
1) your sale transaction would not be null and void 

2) i presume that no stay has been granted by court restraining sale of house by the 2 co owners 

3) there must be an indemnity clause in your sale deed wherein sellers indemnify you against any claims if any made by any third party in respect of the house . 

4) you can recover the said amount from the sellers
Ajay Sethi
Advocate, Mumbai
23192 Answers
1218 Consultations
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1) your brother can issue legal notice to lady to recover the loan amount of Rs 10 lakhs with interest 

2) in case lady refuses to pay file summary suit under order XXXVII  of CPC

3) your brother should have declared the loan given to lady in his income tax returns 

Ajay Sethi
Advocate, Mumbai
23192 Answers
1218 Consultations
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After the execution of registered sale deed and continuous event of paying debt the claim of law consideration demand of earlier owner could not sustainable in the eye of law.So sale transaction is not null and void.If the debts are not mentions in the deed you can recover the said amount from the sellers also. 

Your brother is eligible to recover 10 lakhs from the lady. Issue legal notice to lady with the help of a lawyer.After the notice period file a civil suit before the sub court for recovery of money. 

Ajay N S
Advocate, Ernakulam
1911 Answers
19 Consultations
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You failed to carry due diligence before purchasing the property. If a decree is passed by the court in favour of the creditor for recovery of money the property of the borrower can be attached and sold towards the satisfaction of the decree. Why would the sellers contest the case now? All the rights and liabilities of the seller stood transferred to you after the sale deed was executed in your favour. LICHFL is not a necessary party in my case.
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
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1) you cannot execute gift deed or sell the house at present 

2) the reason being your house is mortgaged to LICHF . 

3) you need LCHF consent for creating third party rights 

4) LICHF will not give its consent till loan is outstanding 
Ajay Sethi
Advocate, Mumbai
23192 Answers
1218 Consultations
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No it wont be as the transferee is liable for all the liabilities of the transferor. You need to understand the concept of necessary party first. LICHFL is not a necessary party.
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
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The LICHFL gave loan to you by creating equitable mortgage. There is no need to make LICHFL  is necessary party in the suit. In this situation creating a gift deed is not legally sustainable and   LICHFL is not give permission if the out standing balance is due
 
Ajay N S
Advocate, Ernakulam
1911 Answers
19 Consultations
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the pending suit before purchase of property is a liability which you should have checked before buying the property.  However did you possess the original link documents before registering the property on your name?, if so, what is the kind of loan that they have obtained?, If there was o mortgage loan  nor a registered loan on this property, then the claim about holding this sale transaction with you cannot be null and void. 
If the vendors are not interested in contesting the case, it becomes your headache to contest it properly otherwise yo stand losing your property.  Ask those vendors to contest and save your property, if they dont respond properly, you may issue a legal notice to them or can even lodge a criminal complaint against them for cheating you by selling the property which is under litigation and now not contesting the court case hence you suspect for a possible scam by the vendors in collusion with the plaintiff of the pending case. .
T Kalaiselvan
Advocate, Vellore
13979 Answers
127 Consultations
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Now she says that I can't pay any debt. Can my brother approach the court? He didn't show his payments in his tax returns. Does the returns give trouble to him? He paid total amount through cheque of transfered from his bank account to her bank account. Does this helpful or trouble to him?
She can take a plea that your brother has not reflected this loan in his ITR but that will not absolve her from the liabilities of the loan for which she evidently executed the promissory notes.  However please ensure that you file a money recovery suit within three years from the date of last transaction. 
Non inclusion of this loan amount will no doubt bring problem for him if IT department comes to know about it. 
T Kalaiselvan
Advocate, Vellore
13979 Answers
127 Consultations
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      If I transfer the house property to my son or to my daughter or sell to another party will it helpful to me? LICHFL gave loan to me with equitable mortgage. so why LICHFL is not a necessary party in my case?
If the property in under loan with LICHFL, you cannot transfer the same to your son or to any one.  Why LIC has not been made a party is t be answered by the person who has issued the notice.This is a clear case of collusion o the vendors with the lender, so a criminal complaint against the vendor will bring you some relief ad respite.
T Kalaiselvan
Advocate, Vellore
13979 Answers
127 Consultations
5.0 on 5.0

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