LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Vinay Reddy (Software Engineer)     07 August 2012

Purchase of property under status quo

We have purchased a plot in bangalore a year back from a vendor through bank loan. Since the bank had done enough scrunity, we did not give a paper ad during the purchase time to check for any objections from others. It turned out to be a mistake as we recently found that the vendor's then employer had filed a suit to attach this property for his mismanagement of funds during his office. Court had asked for a status quo but then the vendor had managed to conceal it and sell this property to us. Can you please inform me how much of an issue is this now  if we want to sell the property? Can the vendor's employer stop us too from selling this property?



Learning

 2 Replies

surjit singh (Assistant)     07 August 2012

Since there is a status quo order the vendor cannot sell the land, if he has done so that means he has violated the court's order. Now the thing is that  the vendor have concealed all this from you and have sold the land to you, that means you have bene cheated so it will be better to go against the vendor by filing a case for cheating immediately, making also the then employer as a party/proforma respondent..

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com))     07 August 2012

Hi Vinay, 

1. Just because the transaction is done in violation of court's stay order - does not mean it is void or zero. It is called a lis pendens transfer in legal parlance. Now your status would depend on the court's final order. If your seller wins the case the transfer in your case takes effect and is sucessfull. However it is attached and sold for the employer - then your interest fails. 

2. It would be a good idea to sue seller in civil/criminal proceedings to recover damages. 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Related Threads


Loading