In Property Dispute, Suit Parties Must File Encumbrance Certificate To Avoid Multiple Proceedings And Ease Future Litigation: Andhra Pradesh HC
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In Property Dispute, Suit Parties Must File Encumbrance Certificate To Avoid Multiple Proceedings And Ease Future Litigation: Andhra Pradesh HC

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While hearing a property dispute case, the Andhra Pradesh High Court emphasized on the value of encumbrance certificates observing that to avoid multiplicity of proceedings, the parties should file the encumbrance certificate along with the plaint, which can also help ease future litigation. On Encumbrance certificates The high court said that encumbrance certificate sometimes "plays a vital role" and indicates the "bona fides of the parties" with respect to the efforts put in by them regarding verifying the information, particularly in the context of Section 3 of The Transfer of Property Act, which deals with constructive notice of certain things as to registered transactions. It said that had the plaintiff verified the encumbrance certificate, he would have impleaded, the subsequent purchaser of the property, after the agreement to sell before filing the suit, as a party defendant. In the case at hand, the court said that despite the written statement filed by the defendant, the revisionist-plaintiff waited till the suit was coming up for arguments and filed the application for adding subsequent purchasers, which shows that the "plaintiff is not diligent".

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