• Lawsuit on my apartment from previous owner's minor grand son

I bought a flat/apartment in kondapur in hyderabad in June 2013 for about 82 Lakhs from builider. My builder has bought the land from previous owner. There is a lawsuit against it from grandson(minor with guardian) ( in 2013 November but I got to just now )who is son of the previous owner's daughter claiming they have the ownership(family dispute). This lawsuit is about 1000 crores of all owners wealth. My apartment land is just 1 cr among 1000. Lawsuit has got 1200 pages. So I also got notice (came through neighbor who got the notice that my name is included in the defendants list ) but not delivered as I changed my home in USA with no address forward. Previous land owner daughter divorced and had son through remarriage. My builder mentioned in the sale deed that he will take care of all legal disputes/problems if occurs in future and he might be aware of this dispute even before selling other flats. I got the possession certificate in 2016 September. I am NRI living in USA from last 6 years. My question is, What are all the consequences do I need to face in this case? Will I be able to sell this flat to any one else if needed? Do I need to reply to the notice even though I did not receive it? What are my options now?
Asked 8 years ago in Property Law
Religion: Hindu

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8 Answers

Hi

First and foremost your builder is the person who should indemnify you of costs in this law suit .

In the event of you receiving summons from court, it is better to appear in the case through an advocate

In the event of you not receiving notice, you can check through a lawyer to see whether you are arrayed in the suit as a defendant and attend proceedings if arrayed.

Technically and legally you will not be impacted in any which way by this suit, except that there is mental tension for you till the suit is pending in courts.

It is also recommended that all or majority of the flat owners decide on a single law firm who can collectively represent all of you and get all of you discharged from the suit as

a) Legal costs can be shared by all of the flat owners

b) Multiple lawyers only unnecessarily delay the process. So if all of you(even if 2,3 or 10 of flat owners) collectively appoint a law firm, then the law firm can represent all of you and seek early discharge for flat owners from the suit.

c) You should ask the courts to discharge you from the suit on the grounds that you had purchased from the builder and were not in any which way connected to the dispute between the grandson and grand father and let builder fight the case to absolve himself as he had purchased the property from the grand father.

d) To provide you with additional comfort, if the father of the grand son is alive, the grand son will not succeed to grand father's property as long as father is alive by virtue of section 8 of hindu succession act. Grand son is not a class I heir to grand father's property when father is alive. Commr. of Wealth Tax. Kanpur v. Chander Sen, (1986) 3 SCC 567: (AIR 1986 SC 1753),

Hope this information is useful

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

1. It is not advisable to proceed with purchase of this property any more. In India litigation takes time and considering the complication of this law suit I wonder whether in your lifetime you could see the result unless the warring parties can reach to a compromise.

2. Your agreement with the builder is to be seen. if there is any materiel misrepresentation as regards clear title of the property then the developer is at fault for which you can be compensated.

3. So ask for refund and on refusal file a case in consumer forum to get refund and damages.

it is best suited for you as sorting out dispute through court if law is life long process.

4. if you have been made a party to the suit then you have to appear in the suit and file your reply. However your personal presence is not required just now.

Devajyoti Barman
Advocate, Kolkata
23128 Answers
505 Consultations

5.0 on 5.0

1. Not receiving notice does not help in winning a case or in yielding getting result in law suits.

2. The notice will be sent to your last known address and also at your suit property and in worst case, the petitioner will publish the notice in two Newspapers locally after which the notice will be considered to have served upon the addressee.

3. Like you, there will be other flat owners also who might have received such notices for which all of you should jointly contest the said case by engaging a local lawyer.

4. The builder may not take any additional interest since he has already sold off his flats and received the consideration and it will be buyers only who will suffer if there is any adverse order in connection with the said property. In fact this is the reason why it is always advisable to conduct at least 12 years Court search along with Registry search, while buying a immovable property.

5. The consequence may be that the Court may Judgment that the petitioner has the share on the said land for which its sale to the builder without taking his consent is illegal for which all subsequent transaction entered in to by the said builder, including selling the flat to you, will be treated as illegal.

6. You can sell the said flat but either the buyer will pay very less price since it is a litigated property and if you can manage to sell the said flat without informing the buyer that it is a litigated property, he may, inter alia, file a criminal case against you for committing fraud and cheating him selling him a litigated property after suppressing the said fact.

Krishna Kishore Ganguly
Advocate, Kolkata
27345 Answers
726 Consultations

5.0 on 5.0

Hi

1) Since the property is the self acquired property of land owner(grand father) you can be rest assured that your ownership of flat is 100% safe

2) Also given that GIC housing finance has vetted the legal documents in all probability the legal team would have done a thorough study on title and then only sanctioned the loan.

3) It also appears that the divorced wife in order to take revenge on the grand father filed this false case against the grand father, builder and flat owners just to bring pressure on grand father to part with some money and also bring disrepute and harm to the grand father. From my experience i am sure the grand father will win 100% as it is his self acquired property

4) Though there is a provision in Civil Procedure Code under Order 8 Rule 6A for you to set up a counter claim against the builder and restraining him from selling the 2 flats in the same suit filed by the grand son against the grand father, unless and until it is carefully handled by your lawyer, the counter claim in the above suit might turn nasty.

5) So if 2 or 3 flat owners can jointly file a separate suit in court against the builder and obtain injunction orders issued against the builder from disposing of the remaining 2 flats till such time the other suit between the grand father and grand son is settled, then the builder will come under terrible pressure to resolve the issue quickly between the grand son and the flat owners.

Hope this information is useful.

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

1) you have to engage a local lawyer and file detailed reply

2)you would not get good price for your flat on account of pending litigation

3)title to your flat is not clear and marketable .

4) suit would take around 15 years to be disposed of

Ajay Sethi
Advocate, Mumbai
96207 Answers
7741 Consultations

5.0 on 5.0

if builder has suppressed material facts about pending litigation call upon builder to cancel the sale deed and refund your money with interest

2) file complaint against builder before consumer forum for unfair trade practice and seek refund of money paid by you with interest

3) legally if it was self acquired property of grand father he was free to sell it . he did not need consent of his daughter or grand son to sell his self acquired property .

Ajay Sethi
Advocate, Mumbai
96207 Answers
7741 Consultations

5.0 on 5.0

1. It is basic law that nobody can convey a title better than his own title. If the plaintiff in the original suit is declared by the civil court as the title holder of the property that you bought from the builder then he can evict you and recover the possession of the property from you.

2. Unless there is injunction ordered by the court you are free to sell the flat but any such sale would be subject to the final judgment and decree of the court. You should ascertain through a lawyer if the court has ordered injunction or not.

3. You may have to implead yourself as a party to the suit to preempt any adverse orders against you. So the suit papers are required to be perused.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1. I am not aware about the merit of the case filed by granddaughters of the previous land owner but the fact is that you have been made a party to the said suit. It can be expected that all 35 flat owners have been made parties to the said suit and have received the said notice. All of you should appear before the Court through a common lawyer to understand in which way the case is proceeding to finalise your course of action against the builder since it is not yet been known whether the builder has committed any mistake or not.

2. The plaintiff should file an application praying for a stay order restraining the builder to sell the said two flats which may be required to be sold to realise the amount to be paid to the plaintiffs, if they receive any favourable order.

3. After some time from the Court proceedings you will understand whether the builder has cheated you or whether your flats are in stake or not. If you find an adverse situation, you can file a complaint case before your local District Consumer Dispute Redressal Forum alleging deficiency in service and unfair business practice claiming an amount equivalent to the price of same type of flat in similar area to enable you to buy the same with interest, damage and cost.

Krishna Kishore Ganguly
Advocate, Kolkata
27345 Answers
726 Consultations

5.0 on 5.0

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