• Breach of agreement

We have entered in to agreement for purchase of house flat,After that  one person has gone to registror office and entered one court attatchment details in their records,Banks are hesitating to sanction laon to the purchaser for the same reason,the sellor has declared that no court attachments,martgages etc. are existing on the property while entering into agreement.Now he wants to cancel the agreement and return the money of advance taken as soon as the property is auctioned.Please advice how to approach the court to get the property regestered in our name and receive Justice.Can I approach Lok Adalat?.                
Your,s faithfully 
G.J. Chandramouli
Asked 2 years ago in Property Law from Kurnool, Andhra Pradesh
Religion: Hindu
1. Since there was bank loan on the property the bank had a prior title and change over this property than yours. In other words the bank cna sell the property and get the value to recover the loan.
2. So you must cancel the agreement and take back your advance money.
3. If the seller does not return your money back then file a suit for damages on beach of contract.
Devajyoti Barman
Advocate, Kolkata
12493 Answers
159 Consultations

5.0 on 5.0

In present situation, please do realise that there is a bad debt and mortgage is created over the property by the builder / owner of the property to bank.That's why the court grand permission for attachment over the property. If the builder the settle the matter by paying the debt ,the court will lift the attachment .If so you can buy the flat.Other wise you have to approach the civil court for return of advance amount and damages .
So send a legal notice to builder for resend the contract and claim damages .If the builder is to ready to return the money approach civil court.

The first charge over the property is always Bank even if there is no attachment at the time of execution of agreement.
Ajay N S
Advocate, Ernakulam
2756 Answers
44 Consultations

5.0 on 5.0

1. If the property is under attachment on the orders of court then the title would not pass to you, so better drop the idea of purchasing it. Lok Adalat has no jurisdiction to upset the order of attachment passed by the civil court.

2. You should take back the refund and look for another property. Even if the order of attachment is passed after you entered into the agreement to sell it will still prevail over the agreement between you and seller. 
Ashish Davessar
Advocate, Jaipur
22958 Answers
631 Consultations

5.0 on 5.0

1) purchaser should cancel the agreement and accept refund offered by seller 

2) since property is under attachment no bank will sanction loan 

3) title of seller is not clear and marketable 

4) don't get involved in lengthy court battle . It is waste of time and money 
Ajay Sethi
Advocate, Mumbai
44153 Answers
2561 Consultations

5.0 on 5.0

It appears that the seller has entered in to sale agreement of a flat first with you and with reference to other flats he entered in to financial dealings with third parties and banks. 
Now it appears others are issuing attachment orders and preventing transactions in said property. Also you are saying bankers are also yet to be paid. If it is bank, since you have paid money, we can ask the seller and bank to issue NOC to you and take possession of flat. If it is third party who has issued attachment orders from court, we can implead ourself in the court and get favorable order. In both the cases, i am confident that you will win the case as yours is primary title. No worries.
Rajgopalan Sripathi
Advocate, Hyderabad
1260 Answers
154 Consultations

5.0 on 5.0

Once attachment is already effected, there is no question of you getting the property registered in your name.  After winning the case, the Bank will sell the property and takes the loan amount from the sale proceeds and if any amount is left over, will return the same to the sellor.  

But you can recover the advance money along with interest, legal expenses etc.  You can also file criminal case for cheating, since they have concealed the fact that the seller owe some amounts to third party and seller have executed promissory note etc. Before entering into agreement with you, the seller should have revealed the fact that they have executed some promissory notes.   

Lokadalat will not apply.  Since the sellor himself is not having any property to be compromised between purchaser and seller. 
Ravinder Pasula
Advocate, Hyderabad
397 Answers
92 Consultations

5.0 on 5.0

Have you entered into a registered sale agreement?, if so you can file a suit for specific performance of contract. 
You have stated that one person has entered the details of court attachment towards the property, then how do you think it will be safe to proceed with the property which is under litigation?
Why is the vendor trying to withdraw the sale agreement?
Why are you insisting to buy the property especially when the bank is not granting loan on the property?
Though you my be having your own reasons for th above questions, the opinion to your question is that you can file a suit for specific performance of contract provide the same is not barred by limitation.
T Kalaiselvan
Advocate, Vellore
34322 Answers
367 Consultations

5.0 on 5.0

The sellor is having loan in Bank which is long out standing. Can the property be attatched to the Promisory Notes?.The attatchments are given after the Date of Our Agreements .Please let me know the legal rights we can enjoy if we go to the court OR Advise whether is better to withdraw the agreement and take back the amount.We want to fight in the court of Law.Pl. Adivise  the proceedureto be followed to approach the Court of Law.

You have become aware of the pending litigation over the property.  Moreover the property is already on loan which is under default.
What will be the benefit if you fight the court case and win it  because even then the bank will be having right over the property.
In my opinion, it wold be better to remain out of litigation and buy a property free of any such encumbrance by cancelling the present sale agreement especially when the vendor is offering to cancel it and return your advance amount. 

T Kalaiselvan
Advocate, Vellore
34322 Answers
367 Consultations

5.0 on 5.0

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