• Validity of unregistered development agreement

Seven years ago, I signed a development agreement with a builder. It was not registered. It was not mandatory at that time in Andhra Pradesh. The builder is a close relative and I didn't take any money from him and agreed to take the 40% share in the developed property. He has not started any development work and informally told me that he is not interested to continue further. I have not bothered to take the agreement back as he is a close relative. Recently, I have signed development agreement with another builder and registered it. Now, the previous builder is threatening me and the new builder that he will go to court and stop the work. Does he have any legal rights ? what are the preventive steps, we can take ? I don't have the copy of the unregistered document, which I signed 7 years ago.
Asked 7 years ago in Property Law
Religion: Hindu

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7 Answers

You should terminate development agreement signed with first builder as he has failed to redevelop property for period of 7 years

2) if you don't have copy of agreement call upon first builder to hand over copy of said agreement signed by the parties

3) amicable settlement is best option

4) in case builder files case seeking stay of development work draw attention of court ru face that no construction had been done for 7 years hence you terminated agreement

Ajay Sethi
Advocate, Mumbai
94684 Answers
7525 Consultations

5.0 on 5.0

1.Do not worry , The previous developer can not do anything on the absis of old one as the same has lost it's time lliit.

2.your subsequent DA will be treated as cancellation of your earlier agreement.

3. So even if he goes to court not much harm would be caused since the case does not have ch merit.

4. however if he succeeds to get injunction order then the construction work at present may be hampered.

5.SO settle with him amicably

Devajyoti Barman
Advocate, Kolkata
22815 Answers
488 Consultations

5.0 on 5.0

1) refuse to bow down to pressure tactics

2) unless you terminate development agreement you cannot award contract to third party

Ajay Sethi
Advocate, Mumbai
94684 Answers
7525 Consultations

5.0 on 5.0

1. What was the time period mentioned for completing the construction in the 1st Agreement?

2. Was there any termination clause mentioned in the said agreement you signed before 7 years?

3. However, he can not claim that the agreement is still valid and valid till eternity since there is some ting called reasonable time which he has passed.

4. so, he will have no merit in in application if he files it before the Court calling upon you to perform as per the agreement you signed before 7 years.

5. The ideal step on your part should have been to send him a letter informing him that you are hereby cancelling the said agreement for his not performing as per the said agreement.

Krishna Kishore Ganguly
Advocate, Kolkata
27219 Answers
726 Consultations

5.0 on 5.0

1. Audio record his such claim for money blackmailing you by threatening that he will file false case and create problem for your selling the developed flats to the buyers if you do not pay him the claimed ransom. Thereafter lodge a police complaint against him for blackmailing with duly submitting the evidence colected by you to the police.

2. Legally the old builder can do nothing. However, lodge the above suggested police complaint to tame him permanently.

Krishna Kishore Ganguly
Advocate, Kolkata
27219 Answers
726 Consultations

5.0 on 5.0

Recently, I have signed development agreement with another builder and registered it. Now, the previous builder is threatening me and the new builder that he will go to court and stop the work. Does he have any legal rights ? what are the preventive steps, we can take ? I don't have the copy of the unregistered document, which I signed 7 years ago.

The previous agreement is not valid under law for the reasons given below:

1. It is an unregistered document hence it is not enforceable in law.

2. It is badly barred by limitation.

If he is threatening to stop your present agreement, you may issue a legal notice to him warning him to refrain from indulging into such unlawful activities by interfering in your personal affairs.

You can also file a caveat against him in the courts where he may likely to approach with an injunction suit to avoid exparte injunction order against you.

Once he is into a court case, you can properly challenge his case on the basis of merits in your side.

T Kalaiselvan
Advocate, Vellore
84885 Answers
2189 Consultations

5.0 on 5.0

1. He is demanding ransom money, which I'm not ready to pay as he has not spent a single rupee so far.

Dont give him even a single pie because the agreement itself is not enforceable hence he has no rights for any claim

2. If I sell the property to someone else, Can the old builder create any trouble for them ?

He should not create any trouble but is he does, then you may initiate proper legal action against him.

T Kalaiselvan
Advocate, Vellore
84885 Answers
2189 Consultations

5.0 on 5.0

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