I had purchased a housing board flat in Chennai from my father in law during Jan 2004 for Rs.6.25 lakhs thru Standard Chartered Bank home loan. My home loan account no. is 42241391.
My father-in-law was working in MTC, Chennai and has lost his job before my marriage due to his indisciplinary action, he has misappropriated Rs. 2 lakhs from the organization and he asked our help in repaying the money and we gave him cash but not sure whether he has repaid to his employer because there is a labour court case pending on his name till date.
After that he wanted to sell his property because he has lost his job and he informed that he need money to survive and to take care of the family. He also insisted my wife (his first daughter) to purchase the same and also informed us that if we purchase the same, he will be satisfied as we had helped him during emergency. As we both (me and wife) were working, we purchased the property through a home loan from SCB, Chennai. Since my father-in-law is an elderly person and I have 2 sister-in-laws who were studying at that time, I allowed my father-in-law to stay at the same property. The documents are in bank and I am paying EMI for almost 7 yrs. Now since the cost has gone up and there is a plan of reconstruction, he has filed a civil case against me and my wife (his own daughter B.Dharini) stating that he never sold the property and he has given documents for mortgage. We have entered appearance in the suit and we are defending the suit properly. We had approached the bank to get themselves impleaded in the suit as Defendant to substantiate the payment of Sale Consideration.
Please advise the way forward.