Can an Indemnity bond be used in this situation by A?
What type of indemnity bond, what are the contents.?
In other words, after obtaining True Copy can A sell the property, having an indemnity bond with the buyer so that there is little doubt about title?
The sale deed itself indemnifies the buyer about the relief measures that can be taken by him against the vendor, hence a separate indemnity bond need not be executed for the property proposed to be sold through a true copy rather certified registration copy of the registered sale deed.
If C ever approaches the buyer with the stolen Title Deed and the Sale Deed (unregistered), and the buyer intending to extract money from A, threatens A that A will be dragged to court based on the indemnity bond, what steps can A follow to safeguard themselves and the property from getting into litigation?
The buyer cannot initiate any action against the vendor until there is a court case in this regard, even if there is court case, he can very well defend his case by sailing with the vendor, however if is demanding money for wrongful gains, the vendor has to deal with him accordingly.