Clarification on Property Ownership

If there is any execution proceedings pending, file an application as an obstructor. There is a lot of chances but the seller must co-operate with you. For details contact your lawyer or call me.

Dear Ms.Revathi,

First relax.  At the time of purchase did you check up for Encumbrance and did you obtain Encumbrance Certificate?  If so, do you have them with you now?

If you had obtained the E.C. and at that time if the title was clear, RELAX, do not worry.

You are a bonafide purchaser.  You do not have any notice of  any previous transaction between your seller and the auction purchaser.  In fact you have already purchased the property in the year 2004 while the property came up for auction in 2008, which cannot be done even if there was any promissory note.  However, one has to see whether there was any court injunction against your seller from disposing of the property! 

In any case, now with these details, approach a lawyer in your locality and he will do the rest.  Once again RELAX, while there is some problem, it is not altogether out of hand.

Madam Revathi Natraj

Of course you need to be little alert and find out the varacity of the issue and the status of the execution or any other case proceeding in the court. Implede yourself in the case if anything is proceeding.

You are so much safe,

1. Your title and Ec of the property was very clear while you purchase.

2. As you have availed the loan from ICICI bank, they also might have checked encumbrance and title of the property through their legal cell while sanctioning the loan.

3.Your seller might have hidden the fact of the case and other court proceedings from you and to the court authority.

4. As you are in the house since purchased, there might be summons, notices or court ameena visit to your house. As you have not received anything in this respect your title to the property remains intact.

for further details required contact me.

Respected All,

Thanks for bringing back some hope at this moment. We have visited the court and collected the following details today:

1. There has been a promisaory note which was executed in 2003 in the court by the ex-owner of the house(from whom we have bought in 2004).
2. When we bought the house, there was no encumbrance and hence ICICI home laons also funded us. We have the original copy of the records with us.
3. The owner from whom we have purchased has expired 2 years after our purchase but have not settled the loan he has borrowed from the money lender even after the promisary note was executed it seems.
4. The money lender has been sending summons to the expired person(house - different location from our house) and copies of the notices when obtained did show a wrong adress all together, where no one stays as they family(widown and two small children) have moved to there mother's village now.
5. But no notice or summons have reached us; also we stay in the house address from the day of purchase
6. When the aution took place in July 2008; the Auction was awarded to the money lenders Daughter-in-Law itself who has paid the money in the court and claiming right of the property now through court people.

Kindly let us know a good civil lawyer as we have all the tax records, Electricity Bill, Phone Bill and Water bill duely paid from the day of purchse to till date.

We are working hard to find the ex-house owner's wife or relatives meanwhile as they should help us in this regard. But also wanted to check; is the Aution at the first place valid ? As the money lender relative is involved as the auction awardee - which overall seems to be a very planned arrangement from the money lender itself(in diverting all court communication to our address).

Thanks to one and all for your kind support and based on your suggestion we would take up an advocate next week itself.

Thanks

Revathi Nataraj

Madam Revathi natraj

Now there is no point in keep discussing through the forum. You have to immediately approach lawyer for doing the necessary things without wasting any more time.

Now you have to do the investigation  role about the previous owner. You have to implede in the present case if there is anything. You have to file a case against the previous owner adding present purchaser, the bank lent loan, as defendants.You also should have some nfluence in the society to book the culprit. You need to do lot.

contact for further assistance and guidance

A.P.Loganathan, 9444931258, Advocate, Madras High Court

Dear All,

Thanks to one and all for your kind information and support. We have appointed an advocate on this issue now. But want to keep an update here as our advocate has clearly mentioned that these kind of cases runs for years due to change in judges, adjournments from other party side and from our own sides too. He has provided an example with his running case which made us clear on the practicality.

Just to keep everyone updated so that experts can provide their valuable suggestions on the incident happended and found by us in the last one week:

1. The owner from whom we have bought in 2004 has borrowed money for his needs from a money lender and have given promisary note and which got executed in 2003. But for what so ever reasons, this did not appear in the EC when we have taken before purchase in 2004 nor did our ICICI bank legal team could find this when they approved the loan.
2. We purchased and immediately entered the house and living there since 2004 June onwards duly paying all taxes, EB, Water bill and Ration card details too updated to this address.
3. But Now in 2010 when we digged out this week with our advocate, it seems he has supressed the  truth and sold this house to us and did not pay the money lender the obtained the amount from us too and settled the borrowed amounts. And unfortunately he has expired in 2005 july itself.
4. The money lender who has already executed the promisory note has been pleeding the honurable court to sell the house and settle his amount and hence the house has come for auction in 2007 itseems and at advanced stages of the auction during sale execution the ex-owner's(expired persons) wife had provided a petition to the court that the Auction for Sale should not be granted - but has not updated us too on the proceedings on the court matters 
5. Now in the auction sale the money lenders - daughter in law itself has won the auction and paid Rs. 13.5 lakhs in the court and claiming the ownership of the property - and on moral grounds at this advance stages the wife(ex-owners wife) along with a court person has updated us and is telling that she does not know anything about his husbands borrowing of money as stated in her petition in the could in 2007 itself.
6. Our lawyer says that : we should first prove that we are a bonafide purchaser of the property without any encumberence in 2004 and with that the execution of the auction sale would be cancelled and money 13.5 lakhs would be returned to the daughter-in-law by the court. And then the money lenders money has to be settled in the court by the ex-owners legal heirs ex: wife etc, to clean up the encumberance attached to the property now. 

But to be honest - I have not gone to work this week and totally upset with the law that - how can all this happen for almost 9 to 10 years without any intimated to us - as we are very well staying in the same address of the purchased house. Did'nt we have the intimation from the court atleast that our property is going for auction though our advocate said that it could be an act of the money lender which might need to be proved with sufficient evidence.

My parents are bit old and I do not want to give any sufferings at this age. Already they are totally upset and shocked - all I wanted to know is - will the law be fair as we have developed a fear and no hope situations based on our advocates mentioning that "if it is a planned act of the 1) money lender, 2)his daughter in law being the purchaser of the property in the auction sale and 3) the wife of ex-owner (who is expired in 2005) desiring to receive the remaining amount from the auction sale after payment to the money lender, then it is bit difficult and would take lot of time too to prove and might need multiple opposition petitions and fresh cases also might need to be applied"

All our family members have lost sleep over this matter and looking at the honest timeframe and the multiple cases mentioning by our lawyer - it looks scary too. Can our ICICI bank legal people help in this regard as the document is still with them under loan for which we pay the EMI.

Dear Revathi,

I think you have located a very competent lawyer.  Hence forth he will handle your case to the best of his abilities.

I think he is quite right on his tracks.  While your bona fide could be proved from the fact that you as also the ICICI bank have done due diligence by obtaining EC from Registrar's office.  There is nothing else that you could have done.   The malafide of the auction purchaser could be highlighted - in case she also had done similar due diligence, it would have revealed to her that the property had already been sold to you and therefore there is an encumbrance!  In spite of that she proceeded to take part in the auction, did not question anything - whether the property is encumbered or not - at the time of auctioni. 

 Yes, while it will involve multiple proceedings by filing varius Interim Applications - counter applications etc., still you have no other  choice than to go through this grind.  But be sure, you will not be disturbed from the property till the cases get over and ultimately there is every chance that the court will rule in your favour.

Dear All,

Thanks a lot for this wonderful forum for all the advice. I had been to the civil court along with our lawyer and though the case was adjourned due to other advocate absence, got to know our situation that we dont' even have an representation as the case is between the money lender to the bororrow(our ex-house owner) from whom we have purchased without encumberance via ICICI loan.

As a first measure our advocate has requested for all the papers pertainting to the case with lots of form filling in the court. We trust our advocate completely and though he honestly admits that these matters might take some time our anxeity over the issue still prevails.

Once again thanks every one for all your suggestions, We shall be patient as per our advocates advice and pray that all the legal checkings goes fine and we are in peace.

Also - I request the elite members of this forum to give a similar reference case so that I can educate myself and give confidence to my family members.

Thanks a lot

Revathi