• Adjudication

Residential propertyrowhouse purchased in Pune on 21st September 1994
Seller - Developer of Pune
Buyer - Mr Bajaj resident of Mumbai
For Value - 12.5L, the document has special adhesive with 5000 X 10 on first page and stamped with GSO round stamping over it with date mentioned 21st September 1994
Document is not registered. Payment was spread based on construction activity uptil possession scheduled on 31st July 1996

On 20th June 1996
Agreement of Sale was made between
Transferor - Mr Bajaj
Transferees - Mr Israni
And Confirming party - Developer of Pune
Stating , since Mr Bajaj is unable to purchase the house Mr Israni has agreed to purchase for 13.5L and Developer has given consent
Also mention has been made on the earlier agreement and that Mr Bajaj was able to pay only 4.25L
Mr Israni will pay balance 8.25 to Developer, and 5.25L to Mr Bajaj
Agreement was made on 5000x5 and 1000x2 stamp paper and registered and signed by Bajaj, Israni and Developer
Post that document was in Registrar office Recordsdept in Mumbai, and in Oct 2015, the balance stamp duty along with penalties (Around 2L) was paid and document was received

On 23March 2002
Transfer deed was made between
Vendor - Mr Israni
Purchaser - Mr Dhameja
With franking of Rs 25610/- dated 23rd March 2002 
Sold for 4.5L, total payment made while document signing
Document was not registered.

In Nov 2015
Supplementary Agreement was made and registered in Pune
The stamp duty (Around 3.5L) was paid and registration was completed.

In March 2017
Seller - Mr Dhameja wants to sell the property
Buyer - Mr Rao of Pune has applied for loan, and the bank has said they need Adjudicated document between Developer and Bajaj,
And a local advocate in pune was consulted and said 2.5L to 3.6L stamp duty needs to be paid...
Need advice whether this adjucation is needed and required to be done?
Is the property clear and marketable?
Stamp duty was paid in the document2 so why it needs to be paid for document1 ?
Anyway by which Mr Dhameja can save not paying stamp duty for document of 1994
Why adjudication and what is the process of Adjudication and how much time does it take?
Asked 7 years ago in Property Law
Religion: Hindu

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4 Answers

1) it appears that agreement between builder and mr Baka appears to be under stamped

2) hence adjudication is necessary to determine proper stamp duty payable

3) seller title is not clear and marketable

4) agreement between builder and first purchased has to be properly stamped to be admissible in evidence

5) application has to be made to collector for adjudication and it should not take more than 3 months

Ajay Sethi
Advocate, Mumbai
95208 Answers
7610 Consultations

5.0 on 5.0

1) there is no harm in submitting sale deed executed between builder and original purchaser for adjudication to determine correct stamp duty payable

2) second document is between builder seller and purchaser

3) they are separate documents

Ajay Sethi
Advocate, Mumbai
95208 Answers
7610 Consultations

5.0 on 5.0

The original sale deed in favor of Bajaj was not executed by the developer in the year 1994, moreover the sale agreement was an unregistered document, hence Bajaj has no marketable title to sell the property to Israni.

If the second document was a tripartite agreement, though it has been registered by paying the stamp duty, it was not a proper sale deed in the name of Israni, therefore it can be deemed that Israni is not having a title deed to the property in his name hence he may be considered to not to have marketable title.

The third document is not a registered document hence the impact of a proper title deed in favor of Israni was not felt as adverse to his purchase by the buyer Dhameja.

It can be deemed that the sale deed in favor of Dhameja also invalid in the eyes of law because it is not by a registered sale deed.

The fourth document was registered but without the vendor having a proper marketable title this registered document cannot be considered as a legally valid sale deed document.

The purchaser Rao's application for loan may be rejected by bankers for want of proper title and link documents confirming title way down.

Though there seems no irregularity or fraud in the transactions, the technical defects may need to be rectified.

If Bajaj is available, he can be asked to seek for adjudication before the concerned registrar's office after which the subsequent transactions can be ratified.

T Kalaiselvan
Advocate, Vellore
85409 Answers
2237 Consultations

5.0 on 5.0

Isn't the first document part of the second document ( as the second document, developer was party to the agreement of sale, he was present during registration, has signed, confirmed, n received funds as per refrences given of dates and amounts of the first document)

Isnt the document 1 and 2 - part of one whole do ument

The first and second document are different to each other, it cannot be a link document to the second document.

Agreement to sale document is different to that of the sale deed document, the balance of stamp duty if any has to be paid towards the registration of sale deed.

T Kalaiselvan
Advocate, Vellore
85409 Answers
2237 Consultations

5.0 on 5.0

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