• Registered land sale agreement expired

Dear Advisors,

My mother made a registered agriculture land sale agreement (ikrarnama) with a buyer in Dec 2019, that agreement has expired at the end of Feb 2020. My mother received only 8% of the agreement on the day of agreement, remaining 92% buyer had to pay before Feb 2020 as per the agreement. Until last day the buyer was saying verbally that he is unable to make the payment. That's how the contract is expired.

Turning point: few days ago we came to know from some sources that ON THE LAST DAY OF CONTRACT the buyer has shown his false presence at the tahsil registerrer office, saying I am ready to buy the land but seller is not available. Reason is he is near to the tehsil and my mother is 200KM away from the tahsil. Ideally she should have reached but we shown trust on the buyer and thought we will talk if he is unable to make the payment. 

1) With in the contract period he was unable to made any payment to us as he had not enough money for the payment. 
2) He never informed us verbally or in written that he was ready to make the payment and come for registry within the agreement term. 


Now buyer is saying that he has purchased stamps for registry (after agreement term expiry) and you were not available and I will file a case in court. 

Now my mother is not happy to sell the land as the agreement term is exipred. If the buyer wants she can alos return the 8% advance. She is also ready for the case in court. 

1 What should we do now?
2 What are the chances of court orders, if this case moves to court from his end or our end? 
3 Still can the buyer do something at tahsil level? 

My mother is worried, please advise.
Asked 4 years ago in Property Law
Religion: Hindu

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17 Answers

If he is ready to pay now not much time has elapsed. Go ahead and complete the formalities. Otherwise he may file a suit for specific performance of contract and then the court may ask you to accept it.

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

Then don't sell the property. Let him file a suit. If he doesn't then the contract is no more.

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

Let him go to the court if he contests you too defend it. If there is no stay you can go ahead and sell the property. 

Prashant Nayak
Advocate, Mumbai
31951 Answers
179 Consultations

4.1 on 5.0

1. You may go ahead and not make the sale. 
2. if the payment has not been made in the term of the agreement then you do not have any liability 

Anilesh Tewari
Advocate, New Delhi
18078 Answers
377 Consultations

5.0 on 5.0

If he is threatening you then go ahead and send a legal notice to him. 

Regards

Anilesh Tewari
Advocate, New Delhi
18078 Answers
377 Consultations

5.0 on 5.0

you should sell land to buyer provided he is willing to make balance payment now 

 

2) execute registered sale deed in his favour 

 

3) in case buyer files suit it would take years to be disposed of 

 

4) out of court settlement is best option 

Ajay Sethi
Advocate, Mumbai
94720 Answers
7532 Consultations

5.0 on 5.0

it is not in your interest to get drawn into long drawn litigation 

Ajay Sethi
Advocate, Mumbai
94720 Answers
7532 Consultations

5.0 on 5.0

Don`t do any thing, neither bother about him. Agreement is expired and if there is clause of forfeiture of advance in case default committed by buyer in payment than don`t refund anything. 

Mere allegations of his readiness to make payment on time is irrelevant. Court will dismiss his case. At tehsil, nothing.

Nothing to worry, his case will dismiss. In case he file civil suit, Lot Supreme court judgements to support your case facts.

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

First of all please note that whatever he is doing simply a face wash and only for saving legal battle nothing else. The agreement is expired unless until extended by consent of both the parties, nor can be enforced with out the seller so if he is threatening you for the case then don't worry he shall be at loss.He will file the specific performance case and your case is that the buyer himself violated the terms of the agreement and did not make payment within the stipulated or agreed time period hence the agreement become void ab initio.

Koshal Kumar Vatsa
Advocate, Gurgaon
2283 Answers
3 Consultations

5.0 on 5.0

1. Your mother can issue a legal notice stating that she sale agreement is since expired, it automatically stands cancelled and can instruct the buyer to collect the booking amount after deductions of administrative costs. 

2. Since the agreement for sale is valid for three years from the date of agreement,  the court can decide in his favor also. 

3. He cannot do anything at Tehsil level but can approach court for relief. 

T Kalaiselvan
Advocate, Vellore
84921 Answers
2195 Consultations

5.0 on 5.0

You cannot combine your own problem to this issue.

You may have to challenge this case on its merits alone. 

T Kalaiselvan
Advocate, Vellore
84921 Answers
2195 Consultations

5.0 on 5.0

1

 You can give notice to buyer to ake payments in 7 days and come forward for registration after payment is cleared if he fails in notice period you can file a suit to cancel the agreement.

2. See litigation may take longer time and he showing record or his willingness to pay can delay the proceedings better to serve the notice and if he is ready to make complete payment sale the land.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

See buyer may take matter to court so you can find other property it's no use to take your property into litigation best thing is to serve notice and wait for response if not file for cancellation before the court.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

If your agreement of sale contains forfeiture clause, you issue notice to him for not complying terms and cancel the Agreement.

However, it is cumbersome process if it takes up litigation mode.  The property will be struck for substantial time apart from lost of man days etc.

If the buyer is still ready, get the sale concluded by getting same registered after receiving entire sale consideration.

If he files case, it is always better to get it settled out of court.

 

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

5.0 on 5.0

If the Vendee does not fulfill the terms of the Agreement then Vendor by serving a legal notice can cancel the agreement even if it is registered and can sell the property to any other person.An agreement whether registered or not can be cancelled on breach of its terms

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Don't sell the said property, agreement is already expired issue a legal notice through an advocate for cancellation of agreement.

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

1. Ask buyer that fix another date of registration of property and be present on that day with stamps and complete payment.

2. Be present on next date of registration to show that you are ready for registration of property.

3. If he fails to complete the payment and registration in next date then send him a notice for cancellation of agreement and ask him to take back the advance paid. 

4. If he still files the case in court then court can order you to take payment and register the property on name of buyer. 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

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