Author: Advocate Harshit Sachar
Place of Practice: Ludhiana, Punjab
Jurisdiction: India

If you discover that a property you purchased is already under litigation, you should immediately verify court records, obtain copies of the pending case, issue a legal notice to the seller, and consult a property lawyer to assess cancellation, compensation, or intervention options. Acting quickly is essential to protect your ownership rights.

How This Situation Usually Arises

A buyer may discover litigation when:

• A third party claims ownership

• Court notice or summons is received

• Revenue records show pending dispute

• Bank refuses loan due to legal defect

• Neighbours inform about an ongoing case

Many buyers learn about disputes only after registration.

First Step: Verify the Nature of Litigation

Do not panic. First determine:

• Is the case civil or criminal?

• Is it about ownership, partition, injunction, or fraud?

• Was it filed before or after your purchase?

• Is there any stay order affecting transfer?

Obtain certified copies of:

• Plaint / Petition

• Interim orders

• Status of proceedings

Understanding the exact issue is crucial.

Understanding “Lis Pendens” (Pending Litigation)

Under property law principles, if property is sold during pending litigation relating to rights over that property, the transfer is subject to the outcome of the case.

This means:

• Your ownership may be affected by the final judgment.

• However, your purchase is not automatically void.

Each case depends on facts.

Issue Legal Notice to the Seller

If litigation was concealed:

• Issue a legal notice for misrepresentation.

• Demand explanation and indemnification.

• Examine sale deed for warranty clauses.

Suppression of material facts may give rise to:

• Civil action for damages

• Cancellation of sale deed

• Criminal complaint in serious cases

Consider Legal Options

Depending on circumstances, options may include:

1️⃣ Intervention in Ongoing Case

You may apply to be impleaded as a party if your ownership is directly affected.

2️⃣ Suit for Cancellation or Damages

If fraud or concealment is proved, you may seek:

• Cancellation of sale deed

• Recovery of sale consideration

• Compensation

3️⃣ Settlement or Compromise

In some disputes, negotiation may be faster and commercially practical.

If Loan Was Taken

Inform the lending bank immediately.

Banks may:

• Seek legal clarification

• Reassess risk exposure

Failure to disclose can create additional complications.

Important Documents to Collect

• Registered sale deed

• Title documents provided at purchase

• Encumbrance certificate

• Litigation papers

• Communication with seller

Documentation strengthens your legal position.

Can the Sale Be Automatically Cancelled?

No. Registration alone does not guarantee dispute-free title, but cancellation requires legal grounds such as:

• Fraud

• Misrepresentation

• Lack of title

• Violation of court order

Each matter must be examined carefully.

Preventive Lesson for Buyers

Before purchasing property, always:

• Conduct proper title search

• Check court records

• Verify revenue entries

• Obtain legal due diligence

• Insert indemnity clauses in sale deed

Prevention is far cheaper than litigation.

FAQs

Is my ownership invalid if property is under litigation?
Not automatically. It depends on the nature of the dispute and court orders.

Can I get my money back from the seller?
Possible if fraud or concealment is established.

Can I sell the property further?
Selling during litigation is legally risky and may attract complications.

What if litigation was filed after my purchase?
Your rights may be stronger, but detailed legal evaluation is required.

Final Legal Insight

Discovering that a purchased property is under litigation is serious but not hopeless. Immediate verification, strategic legal response, and timely action are key to protecting investment and ownership rights.

Disclaimer

This article is for general informational and educational purposes only. It does not constitute legal advice. Property disputes depend on specific facts, documents, and court records. Readers are advised to seek professional legal consultation before taking any action based on the information provided above.