Response

Yes, any disputed property can be sold and purchased without any problem, unless there is a court case and the HonÕble Court has passed a stay order/injunction order, prohibiting the creation of third-party interest or sale. The right to own property includes, right to dispose of the property, and hence the property, even if it is disputed can be sold any time subject to the above-mentioned restriction.

In a nut shell:- if there is a Court stay or injunction then it can not be sold. Please read the stay order carefully. Yes, a disputed property can be sold, bought, and can further be re-sold.

While selling a property, people often come across several difficulties, and hurdles, sometimes because of finding a buyer or sometimes because of prevailing market scenarios at micro or macro level.

Unlike selling a clean property (ready to move in property), selling a disputed property is difficult in relative comparison, because of several reasons like in a clean property, the buyer normally can be a person who is purchasing for self consumption i.e for his own use, residential, agriculture etc, whereas in disputed property the buyer is only investing for future profits only.

So, the ultimate buyer of disputed property is an investor seeking to draw profits, who is experienced and has sold and bought disputed property in hundreds if not in thousands.

Reference: Section 54 in The Transfer of Property Act, 1882
54. ÒSaleÓ defined.ÑÔÔSaleÓ is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised. Sale how made.Ñ3Such transfer, in the case of tangible immoveable property of the value of one hundred rupees and upwards, or in the case of a reversion or other intangible thing, can be made only by a registered instrument. 1In the case of tangible immoveable property of a value less than one hundred rupees, such transfer may be made either by a registered instrument or by delivery of the property. Delivery of tangible immoveable property takes place when the seller places the buyer, or such person as he directs, in possession of the property. Contract for sale.ÑA contract for the sale of immoveable property is a contract that a sale of such property shall take place on terms settled between the parties. It does not, of itself, create any interest in or charge on such property.

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