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ANAND (engineer)     11 January 2014

Property litigation in karnataka

Dear All,
 
Housing society issues GPA(registered in front of judge of small causes) along with possession certificate and allotment letter of property to A. The GPA is signed by society's secretary. No mention of sale in GPA.
After 40 days, the society sells the same property through sale deed registered in sub registrar office, again signed by the society's same secretary to B.
 
Today the society is defunct, no records exist. The society's secretary is dead.
 
After 30 years, property is still a vacant plot.
Both A and B has no idea of either person's transaction with society.
B has paid betterment charges, property taxes timely and up to date and has 'a' khata in his name. Encumbrance certificate is also in his name, no mention of A in it.
A with the GPA sells it to X through sale deed registered in sub registrar office. Principal is dead 10 years before execution of GPA.
A pays all taxes just before registration and is issued 'b' khata.
Somehow B comes to know of this. Police Complaint is filed against X by B for trespassing.
X files a suit in court against B for permanent injunction.
X contends in court that as A was allotted before B, the property belongs to A.
 
My query is the GPA valid(principal is dead 10 years before execution of GPA) and transaction to X legal? Or it has nothing to do with secretary's death as the society sold it to A.
When does the validity of GPA end, after the secretary is dead or after the registration to B.
Who is the rightful owner, X or B?
And who has been cheated by the society, A or B?
 
The litigation is going on.
 
I appreciate your thoughts regarding this issue in advance.


Learning

 2 Replies

T. Kalaiselvan, Advocate (Advocate)     13 January 2014

My query is the GPA valid(principal is dead 10 years before execution of GPA) and transaction to X legal?
GPA is not the sale deed conferring the title on A.  Legally A has been authorised to sell the property to a third person by the society.  Until the society revoked the GPA, it is valid. The Sale of society selling the same property to B is legally valid, even while the GPA is on A's name.
 
Or it has nothing to do with secretary's death as the society sold it to A.   The secretary is an authorised person to perform the society's functions, so it is the society which is concerned and not the secretary.
 
 
When does the validity of GPA end, after the secretary is dead or after the registration to B.
If the property mentioned in the GPA has been sold by the principal directly despite the power given to a third party, this action is legally valid and the GPA's power over the property extinguishes thereof.
 
Who is the rightful owner, X or B?
B is the legal title holder.
 
And who has been cheated by the society, A or B?
A has been cheated.
1 Like

ANAND (engineer)     13 January 2014

Thank you sir


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