I gave 20 Lacs Loan to my Uncle and received promissory note. As I pressurised him to return money or face legal actions, he transferred his property as "gift settlement" to his daughter, giving nothing to his 2 sons.
I filed money recovery suit against him and he received summons.
Now he has applied for insolvency, stating that he is unable to pay his debts and listed me as creditor. He did not list his property.
Daughter may sell and make cash, I'm worried about the property sale by daughter, the bonafide buyer will be protected by Law(section53) because he is
not aware of the debt of father and pending money recovery suit.
What is the best action to take to protect the property?
My lawyer says, daughter did not borrow from me, so I cannot seek injunction restraining daughter from selling her property.
I cannot file "set aside" suit under section 53 of TP act to cancel the fraudulent transfer of property to daughter with intent to defeat or delay the creditor. I can file this suit ONLY after getting decree from money suite. If I file now, it will be rejected. But before getting decree, Daughter may sell and make cash.
I agree with my lawyer if uncle has not filed for insolvency.
Please give your suggestions.