• Agreement of sale

My parents signed an agreement of sale with a builder in 1999 for 5 lacs, 8000 sq.mtr of property, 1 lac advance received. Agreement not registered at sub registrar but signed before a notory. Clause mentioned is amount to be paid within 1 year and sale deed to executed within time. We were not aware if this dealing and my father expired in 2003. The suit property belonged to my grandmother and through succession my parents succeed it. Now the builder has file a suit against us for specific performance of Agreement and injunction. Is the agreement of sale signed in 1999 valid. Can the builder force us to sign the sale deed as we are the successors/co-owners.
Asked 4 years ago in Property Law
Religion: Christian

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10 Answers

Dear Client,

Unregistered document is inadmissible in evidence, but can be used for purpose of filling suit of specific performance. Property inherited from father, legal heirs bound by the agreement executed by father.

But here money was to be paid within one year, and if he not than agreement already lapsed for non performance of buyer.

Even if money was paid in same year, than also suit bar by limitation. Cause of action aroused in year 2000 and limitation for filling suit is 3 years.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

The suit filed specific performance by the buyer is not maintainable as he himself failed to honour his part of the agreement of paying the remaining sale consideration amount within one year. The unregistered sale agreement would be difficult to prove too as evidence in court who has to be done by the buyer.

Moreover, the law of waiver would be applied as the buyer did not do anything so many years and period of limitation for filing a suit for specific performance has already elapsed long back.

Regards.

Siddharth Jain
Advocate, New Delhi
5930 Answers
101 Consultations

5.0 on 5.0

Take the plea of limitation . No payments were made within period of one year hence no sale deed was executed

2) suit for specific performance has to be filed within period of 3 years as time for performance was specified in agreement

Ajay Sethi
Advocate, Mumbai
87939 Answers
6207 Consultations

5.0 on 5.0

Dear Client,

In most cases, agreement to sale is registered. You can take defence that the agreement is not valid and is void as it is not registered deed. Hence, you are not bound to register sale deed.

Jaswant Singh
Advocate, Gurugram
926 Answers
2 Consultations

4.8 on 5.0

Dear,

As you mentioned that the agreement is signed in 1999 and in that agreement it is clearly

mentioned that remaining amount to be paid within 1 year means in 2000. But builder didn't

pay, so the validity of that agreement is expired in front of your father.

Builder can't force you to sign the sale deed.

Tarun Agarwal
Advocate, Jaipur
769 Answers
3 Consultations

4.9 on 5.0

This is my response to you:

1. The period of limitation is against him;

2. The case cannot be filed after 19 years;

3. Although if the court condones the delay then the case will be admissible;

4. Since the original seller is no more, but your family being the legal heirs the case is maintainable;

5. Therefore try to dismiss the case on the grounds of limitation and if not then try to settle the matter out of court.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

The same loses its efficacy after 1 year, that is the time within which the terms of the agreement was to be executed.

He can not now force you to sign the sale deed.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

1. did builder pay your parents the balance sale price within the agreed time period?

2. if the builder claims specific performance of contract then he should be ready and willing to perform his part of the obligations under the conract

3. if the builder did not pay the balance consideration then he would not be entitled to specific performance

4. agreement was signed in 1999. Time period agreed for completion sale transaction was 1 year. Suit filed now. So it is hopelessly barred by limitation

5. Take out an application for raising preliminary issue of limitation and get the suit dismissed

6. you have a good case on ground of suit being barred by limitation

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

Whether the property belonged to your father or mother, since it is barred by limitation the Sale agreement is invalid and not enforceable in law.

Don't sign any paper in haste.

You may consult a lawyer in the local before agreeing for any deal to be signed with the builder.

T Kalaiselvan
Advocate, Vellore
78097 Answers
1543 Consultations

5.0 on 5.0

Since the amount was not paid within one year from the stipulated time and father was alive at that point of time the agreement cannot enforced now as the agreement stood cancelled and breached by the builder himself.

further the limitation on specific performance of any agreement contract is 3 years from cause of action so the suit is barred by limitation also.

File a order 7 rule 11 application to reject/return the plaint of the plaintiff as it is barred by law itself.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

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