Hi, there is no need for such formalities.. When a builder applies for licence to develop a project , he is required to submit all the relevant documents with the authorities

stake holders should execute GPA in favour of company as flats are being sold by the company

Tell him either to get GPA or authority letter.

Sometimes either a person or a company gets GPA in his/it's name. If GPA compositely with a Registered JDA was done between various stakeholders and person X for building apartment in the land, then after completion of the apartment, when each flat owners get their flat then they must register their flats in their name.

If the company is working for building apartment then GPA must mention that the real estate company represented by it director or authorised signatory is getting the GPA.

1. a company cannot sign a legal document as it is an artificial person and not a real person

2. so a company acts through its authorised representative who is appointed by the company by passing a board resolution

3. so just ask the builder to provide you with a certified copy of the board resolution appointing mr. x to sign the legal documents on behalf of the company

a) should I ask builder to create GPA with company

Answer: Yes for the safety on your land/property you should ask the builder to create GPA with the company;

b) get some document from builder that such dealings done by person X belongs to company and X has no right to claim it on his name.

Answer: Yes there are such documents which exist. You can ask the company to execute such a document so that the right, title and interests of the stakeholders is not jeopardized. You an add a clause stating that the land shall be part of the company even when X leaves in the future.

Do you have any idea that this X person is going to leave the company? If so, then please take precautions.

Dear Sir,

Just file a formal suit for declaration against all the concerned with consequential relief of permanent injunction,. The suit will decreed shortly and you will have stronger documents which will serve for all purposes.

If the original GPA is not a by a registered document then the enforceability of the GPA through court of law itself may not be feasible.

However in the given situation, it is a registered JDA between the stakeholders and X, the GPA holder. It is his problem to built the apartment through a real estate company or by himself.

As per JDA conditions X is responsible and liable for all activities including any such adverse eventuality, so he cannot claim excuse on any aspect even if the apprehended situation occurs.

A GPA cannot authorise another person with another GPA on behalf of the original principal.

You concentrate on the registered sale agreement or sale deed, which will be the base for all your legal actions that you may propose to initiate against the builder or the seller.

Hi,

The option b is more viable and in any case, you should not leave a clue for future problems.

1. There is no question of giving GPA to another person by an existing GPA holder.

Here the builder is having a company which has been assigned with this task by this GPA holder who has entered into a registered JDA with the owner.

Therefore it is his duty to complete the task or to under take the liability as per the conditions of the JDA.

Therefore there is no requirement for a separate indemnity from the builder, he can be sued directly if there is a mischief from his side.

2. The relationship between X and the company is not related to the JDA, actually X is engaging the services of the company at his own risk and responsibility, hence why do you want to drag this company in between, becasue the company is responsible to answer you.

You may consult an advocate in the local to discuss and become aware of the law and the ground reality.

GPA between stake holders and company would protect you

2) in addition insist on Indemnity bond

3) company should pass board resolution authorising X to deal on behalf of company

Dear Sir,

You may safely sell the property to some one else, it is first option. The second option is nothing will happen to your possession. Possession is nine points in law. Just enjoy if transfer is not possible., it is your second option. Finally you may file complaint against them in Consumer court and claim for refund with interest, which will take some years to dispose.

Dear Sir,

My answers are as follows:

a)Should I ask builder to sign an Indemnity bond (with Director's signature) that , for any damage due to wrong GPA will be the responsibility of the builder.etc

Ans: Yes, you can do it.

b) Get an authorization letter that mr X has been given rights by the company to make deal on the behalf of the company.

Ans: It may not work.

In such deals , authority letter assigns through resolution in meeting.