Property related money froud

Question

► I had agreed to purchase a 6 marla house for ₹44 lakh from a known person, who claimed that the property was in his wife’s name. Based on that assurance, I paid him ₹35 lakh through traceable means and an additional ₹5 lakh in cash on trust, without a written receipt. Later, disputes arose over fittings and measurements, and I discovered that the property was actually only 4 marla. I filed a money recovery case, but due to the influence of the opposite party’s advocate and my own lawyer’s misconduct, the matter ended in a compromise decree of ₹34 lakh, excluding the ₹5 lakh cash. Despite the court granting three months for repayment, the defendant has only returned ₹10 lakh so far and continues delaying further payment. Recently, I obtained land records from the Patwari office showing that the property never belonged to his wife and was, in fact, sold to another person one month after I filed my recovery suit. This clearly indicates fraud and cheating on his part. Although some advocates told me that nothing can be done after the compromise, others have confirmed that I can still file a criminal case under Section 420 and related provisions of the IPC, as fraud vitiates any agreement. I have strong documentary proof and audio evidence, and I intend to pursue both the execution case and a criminal complaint simultaneously to recover my remaining ₹24 lakh and seek justice for the deception and harassment I have faced.

Answer 1

Dear Sir, as per query,

You can file a detailed written complaint with the local police station or the Magistrate alleging offence under:

Section 420 IPC – Cheating and dishonestly inducing delivery of property

While pursuing the criminal case, you should simultaneously file (or continue) the execution petition under Order 21 CPC before the same civil court.

For further clarification and details, feel free to contact our OLQ Team for a detailed discussion.

Answer 2

Dear Sir,

File Application in Civil Court to Set Aside the Compromise (Optional)

Since the compromise was obtained by fraud, you can also:

File an application under Section 151 CPC in the same court, praying that the compromise decree be recalled and proceedings restored, citing newly discovered fraud and false representation.

The court has inherent power to recall a decree obtained by fraud (see A.V. Papayya Sastry case).

You may consider this step after consulting a civil lawyer, since you already have a decree helping recovery.

Answer 3

File a criminal complaint or FIR under Sections 420, 406, 468, 471, and 120B IPC against both the seller and his wife (if she was part of the misrepresentation).

Answer 4

Sir,

Rightly so, you can file a 420/406 IPC case as against such person for fraud and criminal breach of trust.

You also need to file an execution petition for recovery of your money as per the compromise decree.

There are other various ways of help in the legal domain which I can help you with. Please get in touch for further assistance.

Property related money froud

4 Answers

File Application in Civil Court to Set Aside the Compromise (Optional)