1) court would consider 48 months period as time for making payment
2) court may pass orders in favour of ABC
3) cancellation would depend upon reliefs claimed in suit
Unregistered sale agreement related query
The above said XYZ company entered into unregistered sale agreement with company ABC, the purchaser (ABC) paid 1 lakh and mentioned the period like 48 months from the date of execution there of. Were as the XYZ executed the POA in the year jan- 2009 and revoked the POA in 2012 by XYZ but the mutual agreement in DEC 2008 says 48 month. Could you please provide me the implication on this sale agreement clause 48 month.. 1) Will 48 months be considered in sale agreement by court? 2) Will court pass orders in favor to ABC? 3) Will the court cancel the revoked POA in 2012 by XYZ? Thanks in advance.
Asked 5 years ago in Civil Law
16 Answers
Brief about case: i . The unregistered sale agreement was made in the year 2009 between XYZ & ABC . XYZ issued a PoA in favour of ABC in 2009 and then revoked it in year 2012 due to some differences between them. ii . XYZ later with the help of a builder converted the agri land as residential plots( CMDA PLots) and then sold to buyers and also provide home loan from reputed bank for the buyers , in the year 2014.( Registered sale deed , with property hypothicated to bank for the loan taken. iii . A case was filed by ABC on XYZ , claiming for specific performance of the unregistered sale mentioned.agreement 48 month time period claim in suite in the year 2016 iv. The builder saying , that he would help us in this case , appointed a lawyer to represent " the buyers" in this case and filed a rejection petition in the court , in 2017 . He told us that unregistered sale agreement is not valid in court. v. Now a few weeks back , we have come to know of another case between xyz & ABC in another district court in the adjacent town from chennai , in which we buyers are not party . The builder and his advocate are advising us not get involved in the other case.
Asked 5 years ago
un registered agreement for sale Is binding upon parties
time for making payment was fixed at 48 months
court can grant purchaser reliefs claimed by him
1. yes as it is agreed in sale agreement same would be considered,
2. That would be based on court and material on record,
3. Since POA is already revoked cancellation of same is not required by court.
In other case since it is civil suit buyers are not required to be party as there is no interest of buyers in that property.
Further since the ABC also took no steps for agreement till 2016 the court may allow refund of the amount.
Unregistered will not be read in evidence but court can entertain it if it is later Registered by adjudication and penalty. But it is matter of merits. In this case action can be taken against the builder in NCLT also.
An unregistered document does not affect the property stated in it
However as per proviso to s. 49 of registration act, the party under an unregistered document can always file a suit for specific performance of contract
Also mere revocation of the POA does not affect the 2014 agreement
Further the agreement stipulated a period of 48 months for completing the sale transaction
Therefore the sale was to be completed by 2018
If that is being refused to the buyer, then he can definitely file a suit for specific performance of contract based on unregistered document and his claim will be within limitation period and thus the rejection application will not help in dismissal of his case
Above case : Would like to provide you additional details for better clarity: ========================================================= XYZ entered unregistered sale agreement extent of 14.13 acres in sourth chennai which is under Tambaram Sub-Registrar office with ABC dated on 29th-12-2008. The POA executed by XYZ with ABC nominees @ Alandur sub registrar office. ABC paid 1.40 crores to XYZ for total extent 14.13 acres (10 lakhs per acre). Later, XYZ issues letter to ABC dated on 29.01.2009 conforming that a sum of 50 crores for the property sale but received only 1..40 crores from ABC fro sale consideration of 14.13 acres. Further mentioned by XYZ that POA is irrevokable until all interests are satisfied. Later XYZ executed a deed of cancellationof the POA dated 02.01.2012 against the POA dated on 19.01.2009. Aster this XYZ transferred the portion of property to third party in june 2015. XYZ prevented interim injunction from interfering with ABC possession. Please clarify the below listed queries. The affected 100+ families failed a rejection petition in Tambaram court to respond the case filed by ABC in Tambaram court. 1) Is POA allowed in Alandur sub registrar office but the property which is under Tambaram sub registrar office? 2) I request advocates to provide better clarity on whether affected 100+ families can interference in the main case between XYZ and ABC in district court Chengalpattu. (Here ABC prayer is :in sale agreement 48 months mentioned, also claim the property location and survey numbers. These survey numbers are fall for 100+ affected families, those who allready filed rejection petition in Tambaram Court. Thank you Advocate panel.
Asked 5 years ago
1. Yes a power of attorney can be registered in any part of India, it gives power on behalf of principal to agent so not necessary to execute where property is located as there can be more then one properties in single POA.
2. See if the dispute between XYZ and ABC in district court Chengalpattu if the affected families has interest that is they live on the land as mentioned in the suit in Chengalpattu then only there is need to contest that suit otherwise it is separate civil dispute and the affected families are not necessary party for same.
Affected families can file intervenor application in suit filed by ABC against XYZ
2)POA can be registered wherein principal is residing although property situated in different district
Thank you Mr. Subham Jhajharia and Ajay Sethi for quick reply. 100+ families purchased a PLOT (range from 850 sqft to 1200 sqft), per sqft cost is Rs 2100 in the year 2016 after the XYZ transferred the portion of property to third party in june 2015. The families are not living there but many of them are interested to construct the building but unable to do so because of this legal issue exists. For your information. we all took plot loan from axis bank in the year 2016 they provide 80% loan with condition like the customer has to complete construction within 5 years. later the loan type may change to mortgage loan type with higher interest rate. The Axis bank, builder and 100+ families received notice from Tambaram court, suit filed by ABC,for this suite rejection petition filed by all families through the Marketing agent and builder. But still the Axis bank is ready to provide housing loans for construction, also Marketing agent + Builder for this property encouraging us to build a house over there. But we are all hesitating to proceed construction because of the legal issue. I understand you both are suggesting 100+ families intervene/contest Chengalpattu district court main case filed by ABC against XYZ. In that case, the survey numbers mentioned and 48 months time period mentioned by ABC as per sale agreement , these survey numbers are Phase-1 and phase-2 property of affected families. The ABC prayer to honorable court is XYZ has to return the property to ABC as per the sale agreement and full amount 1.40 crore paid to XYZ. Please convey your point of view if required for the above scenario. Thank U.
Asked 5 years ago
As on date there is no stay order passed by court restraining carrying on any construction on said plot
if 100 families are affected and are staying in houses built on said land court would not evict you rather direct seller to compensate the original purchaser
As I said If the said entity is company you can get quick resolution in NCLT.
See you can contest the suit there are in my view least change court will order to cancel the sale and return the property , it may be written of amount with interest but returning property can be contested at this time.
This is an unregistered sale agreement which in legal sense is not maintainable.
The POA is also an unregistered document hence not enforceable.
The maximum period for sale agreement is three years, however since both the parties agreed for 48 months in the unregistered agreement, the court will decide on merits after hearing both the sides.
The buyer cannot enforce the unregistered sale agreement in court of law, especially the suit for specific performance of contract may not be tenable because it was entered in the year 2009 for 48 months and the suit was filed in the year 2016.
The revocation of power of attorney deed may be valid since it is also an unregistered document.
Until and unless your interests are affected in another case, you dont get involved in that case.
Your contents create lot of confusions and there is no clarity in the case.
Since you are a buyer you have written many things out of anxiety instead of writing the actual problem that you face.
It is advisable that you consult an advocate of this forum or from your local with all relevant papers and get a second opinion to that of your own advocate and proceed as per the advises received.
Since both the buyer and seller are at logger heads in the court of law, the buyer of this property would be taking shelter on the sympathy issue that more than 100 families have bought the property, hence he is provoking you all to fight against it, well since the matter is before court and the status of the case is also not known , any opinion given on subjudice matter may send wrong signal or misguidance, hence you are advised to consult another advocate in the local with all relevant details, in person to clarify the details properly instead of seeking opinion on such sensitive issues in a public forum like this.
- As per the information mentioned in the present query, makes it clear that the agreement to sale was unregistered.
- And an unregistered document cannot be produced before the court of law to get it admitted, but if the party claiming their rights can prove by somehow as the amount was paid then they can get the amount as there the other party can’t take the benefit of unregistered document.
- And the other party cannot cancel the POA and if they have already done that as per the information mentioned above then that would not affect the claim of the right party.
