• Sale agreement related

We bought agricultural land by paying 1/6th of total amount as token advance and made an agreement to pay total in 3 months i.e. to be payed by May 3rd.
We were expecting for the loan procedure to complete within a month's time. But, unfortunately loan was delayed because of LOCKDOWN. According to bank, the loan will be sanctioned by May 7.
The seller is blackmailing to pay interest for whole amount without understanding the scenario and seriousness of lockdown.
Seller have some loan dues on the land according to Encumbrance certificate. There are no register offices too.
He wants us to pay the complete amount, and get signed on a promissory note. 
This on a whole is an mental torture.
We told him that we can pay half of the amount and extend agreement for a month.
Tried talking to him many times but he is not giving it a hear.


Lockdown is an unexpected guest and delayed the process.
Can I know the legalities on the issue and how can we proceed?
Asked 2 years ago in Property Law
Religion: Hindu

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20 Answers

Whether it is mention in the agreement that the remaining amount shall be paid at the time of registration of sale deed before the registrar in registrar office or not?

 

if yes then you may try to find out that the registrar office is open and working or not, if yes then you may try to settle the matter by way of given Post-dated cheques.

 

It is also not confirmed that the loan will be sanction on the 7th of may or not.

Nadeem Qureshi
Advocate, New Delhi
6220 Answers
302 Consultations

4.9 on 5.0

1. The respective rights and obligations of the parties are determined by the agreement which is in force. 

2. If there is an interest clause in delay payment then you can not avoid or vice versa. 

3. If the terms are modified with change in payment structure then make a subsequent agreement. 

4. Keep sending emails or written letters showing your readiness and willingness for making the remaining payments which would help you in the suit for specific performance of contract if you need to file the same in the event the seller cancels the agreement. 

Devajyoti Barman
Advocate, Kolkata
22515 Answers
409 Consultations

5.0 on 5.0

On account of force majeure conditions you can seek extension of time to make payment 

 

 

Make payment of 50 per cent and send email to seller seeking extension of time 

 

3) if he refuses file suit for specific performance and offer to deposit balance amount in court 

Ajay Sethi
Advocate, Mumbai
89092 Answers
6362 Consultations

5.0 on 5.0

1.  No interest is liable to be paid as lockdown is prima facie Force Majeure. 

2. If he does not come forward for execution of sale deed then you may serve a notice to him to express your willingness and readiness to pay the agreed amount without interest and then file a suit for specific performance against him.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

A. The word " LOCKDOWN" is coming under the wider definition of 'Force Major' which means Act of God. Hence, the term of the agreement automatically will be extended by virtue of Act of God. 

 

B. You may issue a legal notice in the event of the owner demanding and threatening you towards performance of contract. As you said. since sub registrar office not working and no normal man power in the banking sector to complete the loan procedure that you are absolutely exempted from the fixed time limit in the Agreement even through time is essence of contract. 

 

C. In the absence of any clause towards Force Major (Act of God) you will get the above remedy under Indian Contract as the objective of the Act is protect the contract. 

B.T. Ravi
Advocate, Bangalore
943 Answers
96 Consultations

5.0 on 5.0

First of all file a 406IPC complaint against him for not withstanding his words and forcing you unnecessarily to pay the whole amount. 

I would suggest that full amount should not be paid before the registry process 

Due to lockdown you are not bound to complete the terms and conditions mentioned in the agreement. 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

You don't need to haste he cany force you to execute the agreement he needs to wait for lockdown to vacate

Prashant Nayak
Advocate, Mumbai
28106 Answers
93 Consultations

4.4 on 5.0

1. See in your situation the payment is delayed due to unexpected lockdown so by nature of your agreement no interest is applicable.

2. You can send him a written letter informing same can pay him the 50 percent amount and rest at time of registration as or as per agreement.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Check if there’s a force majeure clause in this agreement to sale. If there is one, the agreement has been frustrated due to the impossibility introduced by the Covid 19 and the resultant lockdown. Neither parties are no more bound by this agreement. There’s nothing wrong legally, in your request seeking further time to conclude the sale 

Vibhanshu Srivastava
Advocate, New Delhi
9441 Answers
251 Consultations

5.0 on 5.0

1. Seller cannot force you to adhere with terms and conditions of the agreement during this lockdown period.

2. It is forced Majeure event during this time all the agreement comes to a type of pause and cannot be forced on any party. 

3. Send a written notice to seller that as per forced Majeure event the time of Sales agreement gets extended by term of lockdown period so he cannot force you to pay remaining amount.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

Is there any force majure clause in agreement ?

You can refuse to pay till laon not clear and full pay at the time of registration of sale deed otherwise refund of advance. If not refunded than warn him to file FIR of cheating.

Delay is payment can be justify that seller not cleared the EC and not not ready to register sale deed.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

All contractual performance schedule shall be deferred to the end of lock down period by invoking the force majeure clause even it is not mentioned in the contract. It has now become implied due to reasonable application of law. 

Inform the party accordingly.

 

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

5.0 on 5.0

- The Government has direct the public not to move from house during the corona-virus outbreak , and due to this reasons all the services has been stopped. 

- Hence your delay of payment is caused by the Force Majeure , and not malafidely , which is out of your reach and control.

- Since you have entered into a contract after signing an agreement with the seller , and thereby you bond yourself with the clauses mentioned therein . 

- As per law, A breach of contract occurs when one party fails to fulfill its agreement according to the terms of the contract , and the other party fulfills its obligations, the performing party is entitled to legal remedies for breach of contract.

- But,if the breach inevitably occurs due to something neither party has control over such as a natural disaster that affects one or both party of the contract , or the ongoing COVID-19 outbreak, then it will not come under the definition of the Breach of contract.

- Hence, the blackmailing in the garb of delay by the seller is against the law, and a complaint can be filed against him  for blackmailing and breach of trust and other provision of IPC

- You should send a legal notice even via mail, to the seller after stating the trouble faced by you due to lockdown.

- If the seller cancelled the agreement , then you can file a suit for performance for the execution of sale deed in your favour. 

Mohammed Shahzad
Advocate, Delhi
10324 Answers
124 Consultations

5.0 on 5.0

1. You are legally entitled to Time Extension, till end of Lockdown period.  This cannot be refused, more so since major offices of the Govt. and Banks etc.... are functioning with bare minimum staff and further more so since both (Seller & Buyer) are bound not to move out anywhere, for any property transaction (which is a non-essential item).  It will be a prosecutable offence on both of you to move out anywhere during lockdown, hence all activities are suspended due to govt. order.

2. Issue him a  legal notice, explaining above and inform him that due to force Majure, the transaction will be completed AFTER lockdown is lifted.  This way he will not be able to deal with anyone else. 

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

An agreement is valid for a period of three years even though you have made the agreement to pay the balance of sale consideration amount within three months.

The seller cannot demand interest for the period of delay especially when the given circumstance over the entire world is critical and lock down has not been lifted.

If the seller insists on the payment you can talk to him about the current situation, if he is not convinced then issue him a legal notice stating the unavoidable circumstances due to which the balance payment could not be made hence to extend the time limit by one month.

On the basis of this legal notice you can obtain an order on injunction against him if he is still threatening you or demanding unnecessary inserts a penalty.

For taking any legal action you may have to wait for the relaxation in the lock down situation.

 

T Kalaiselvan
Advocate, Vellore
79250 Answers
1618 Consultations

5.0 on 5.0

Hello,

This condition will act as a force mejeur and no court will grant him any relief. 

Issue a legal notice to him if he further harasses yo in any manner whatsoever. 

 

Regard s 

Anilesh Tewari
Advocate, New Delhi
17943 Answers
377 Consultations

5.0 on 5.0

Due to the supply chain disruptions caused by the lockdown, it is likely that the performances under many contracts will be delayed, interrupted or even cancelled. Parties to a contract may seek to delay or avoid their responsibilities under the contract, either because the lockdown has legitimately prevented them from performing their contractual obligations, or because they are seeking to use it as an excuse to free themselves from an unfavorable deal. They may also cite COVID-19 as a basis for renegotiation of the cost or other key contractual provisions. This is why it is important to determine whether COVID-19 will be considered as a ‘Force Majeure’ event.

you can ask for relief under the doctrine of frustration under Section 56 of the Indian Contract Act, 1872

Mohammed Mujeeb
Advocate, Hyderabad
19032 Answers
32 Consultations

4.5 on 5.0

Let himbsay whatever he wants. You should clarify all things first before doing anything. He can only go for specific performance of contract in a civil suit. You have valid reasons for not going ahead.


You shouldn't panic and take your time. When the registrar office opens the rest of the amount has to be paid and property registration has to be done.

Rahul Mishra
Advocate, Lucknow
13846 Answers
65 Consultations

5.0 on 5.0

As stated by you, you can make payment to the tune of 50% of total sale consideration.

Thereafter seek extension of time for paying balance within a specified date i.e., one month, and request for his Bank Account Details to deposit the same on such extended date, by which you show your readiness and willingness.

You need to invoke the force majeure i.e., due to lock down.

If the seller refuses to your offer, you need to issue notice followed by filing suit for specific performance (make sure on the date of filing of suit, you need to have financial capacity to pay balance sale consideration).

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

5.0 on 5.0

This is situation is not for particular person or city or state or country, but whole world is facing the COVID-19 problem. So the seller should understand this and co-operate with you.

 

If you want to cancel the agreement than ask him to return you 1/6th amount of money along with interest.

Ganesh Kadam
Advocate, Pune
12423 Answers
193 Consultations

4.9 on 5.0

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