• GPA and joint development agreement cancellation and it's effects

I had entered into a registered a sale agreement with builders firm (comprising two partners) to buy an apartment in bangalore on the year 2008 paying 15 lakh rupees in couple of instalments for a total sale consideration of 21 lakhs. My registered sale agreement was based on a GPA and joint development agreement between the builders and land owner made on 2006 and is signed by the builder partners alone and not by the land owners though they are added parties in my agreement. The encumbrance certificate for the flat stands in my name as I verified.  Unfortunately, after completing the structure of 4 floors (concrete work and partial wall work etc.) builders had stopped the construction work due to some cash issues at their side and they later completely absconded themselves and were not reachable & traceable. I only came to hear that once or twice builders seem to have approached the land owner requesting some more time for completion of work and land owner had asked for additional lump sum money to continue with the construction which put a complete halt to the construction progress. 
Since all my attempts failed in contacting the builders, as advised by a lawyer I issued a legal notice on 2009 to both builders and land owner praying to complete the construction and hand over of the apartment executing a sale deed per terms in my sale agreement. There was no reply from the builder’s side as they were not even available to receive the notice in their office address. Land owner’s reply to the notice stated that they have issued public and legal notice to terminate the contract (GPA and joint development agreement) and they have also incurred huge monetary loss and facing legal hurdles on their property by such notices and claims. Their reply notice further stated that they have no legal obligations with my sale agreement with builder and i neither have any legal rights or claim on them.  Post receiving reply notice from land owners and given that I was unable to locate the whereabouts of the builders, my lawyer suggested to wait for some more time stating that even if they cancel the GPA and Joint development agreements, I will have a good chance to establish my claim on the flat since legally it would only have “prospective” effect. 
In the meantime, land owners had approached high court and got appointed a retired district judge as an arbitrator to handle the dispute as in the joint development agreement arbitration clause which calls out to resolve any issues on mutual agreement in front of arbitrator.  I recently learned that the arbitrator in the year 2016 has awarded an X party award in favour of the land owners granting all their prayers since the builders didn’t represented themselves even after multiple notices and also for the newspaper notification by the arbitration court. The arbitration center considered only land owner and builder as two parties on this case and didn’t considered involving any other parties(like me) who have legally got bounded on the property through registered sale agreements from the builders side while GPA was in effect.  I’m also unable to get a copy of the award by arbitrator from arbitrator center and they stated that the award copy can only be given to builder or land owner and not to anyone else. I learned from the staff in arbitration center that the award cancels the GPA and joint development agreement and makes it null & void which also includes any legal documents made on that property by builders (GPA holders). The land owners are entitled to complete the construction of the apartment with any other builder of their choice and they are freed from any legal disputes on that property.  A very huge lump sum of few crore rupees has to be paid by the builders due to the monetary loss incurred by the owners. 
Given the above, would like get expert legal opinion the following:
1)	Can I get the copy of arbitration court under Right to Information act ? If not, how do I get a copy of it to understand the award better being a affected party as part of this judgement?
2)	Importantly, what is my chance in legally challenging the award by the arbitrator bringing into consideration my registered sale agreement to get at least a minimal relief for my loss?  
3)	Since the builders are absconding still, is it legal to bind in the land owners and claim minimally my invested money on that apartment? The four floors of apartment constructed by the builders utilizing the money and the same building will be continued by land owner now to take it to completion.
4)	Do I file a police complaint against the builders? Or should I file it against both builders and land owners as my sale agreement was done when GPA was fully active where the land owners are also bound? 
5)	If it’s already very late and legally i can’t claim any relief from land owner with regards to that property considering this verdict by arbitration court, is there an option for me to claim the lost money from builders through a criminal case ?
Asked 7 years ago in Civil Law

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3 Answers

1) issue legal notice to landowner as they are confirming party to sale agreement and seek copy of award

2) you have to file complaint before consumer forum against landowner and builder and seek orders to direct them to deliver you possession of flat

3) you can file police complaint against builders / landowners for cheating and criminal breach of trust

4) since you were not party to arbitration agreement you are entitled to claim your rights as per tripartite agreement entered into with builder and landowner

Ajay Sethi
Advocate, Mumbai
95223 Answers
7612 Consultations

5.0 on 5.0

1. You can apply for its certified copy from the arbitrator.

2. You can file suit for specific performance of contract so get a ex parte order and have a stranglehold on the property through court order.

3. Once you get the court order the new builder can not sell your portion to other.

4. Do as advised above.

5. Do as advised above.

Devajyoti Barman
Advocate, Kolkata
22921 Answers
498 Consultations

5.0 on 5.0

1. You cannot get the copies of the arbitration proceedings or its orders even through RTI Act.

2. First of all understand that why the landlord approached the Arbitrator.

The landlord has not impleaded you as a party in the proceedings intentionally because there is no necessity or grievance against you for the landlord.

Since you are aggrieved, you only should have approached court agaisnt the landlord because he cannot escape the liability of the GPA given to his power agent who entered into a sale agreement on that basis, so the landlord can be held liable for the act done by the power agent on his behalf.

3. Since the sale agreement was entered by the power agents on behalf of the principal and also ther is a joint venture agreement between the landlord and the builder, the landlord's liability cannot be ignored or set aside.

4. You can very well lodge a police complaint agaisnt all of them

5. You can file a recovery suit agaisnt the landlord even now by canceling the agreement

T Kalaiselvan
Advocate, Vellore
85424 Answers
2239 Consultations

5.0 on 5.0

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