• Is 100 rupees stamp paper legally enforceable


On 28th January 2015  an advance agreement was made in 100 rupees stamp paper as per the law  in respect of sale of 86 cents of land.This 86 cents are belonging to 12 members of family, since these members are residing different places this document has been send to these members for signing the document.After signed by all the members it reached back on 10 march 2015. The purchaser of land gave the advance of rupees 10 lakh on the next day(11 march 2015).The time period for registration of land is given for 4months.

On 11 july 2015 the purchaser came and said that they are ready for registration on 25 august 2015.
They argued that 4month period should be consider from 11 March 2015(the day on which the advance amount given) and some supporting documents like location certificate for registration was also not ready.
5 members from us asked for compensation.
The purchaser was not ready for that and said that if we are not ready for the registration he is  likely to give up the deal and the advance money to be return back.

Those 5 members asked for compensation are not ready to return back their shares,but remaining 7 are ready to give back. 
Now these 5 members arguing that they are ready for registration of this  86 cents land only after the completion of family partition.
Due to this issue the dispute came out between members.

What will be the court decision in this issue if the purchaser went through legally? 

Will those members ready to give back their shares free from any obligation?
Asked 3 years ago in Property Law from Kozhikode, Kerala
Religion: Hindu
1) it is necessary to peruse the agreement signed by family members to advice

2)4 month time would be from date of agreement and not from payment unless there is clear provision in this regard that 4 months should be counted from date of payment 

3)purchaser has fairly asked for refund in case deal is cancelled 

4)if purchaser moves court then court will grant injunction restraining creation of third party rights pending hearing and final disposal of suit 

5) suit will take more than 10 years to be disposed of 

6) settle issue amicably with the purchaser and refund the advance money paid 

7) let 7 members refund the amount and purchaser can file suit against balance 5 . 

8) file suit for partition 
Ajay Sethi
Advocate, Mumbai
44224 Answers
2565 Consultations

5.0 on 5.0

1. The date of 4 months is to be counted from the date when the last signature of any of the parties is put on the agreement.
2. If any co sharer is unwilling then leaving his share the rests share can be sold by entering a fresh agreement.
3. Alternatively the buyer can file suit for specific performance of contract on the basis of unregistered agreement. However during trial he will have to pay the full stamp duty and then the trial will commence further.
4. The court is st discretion either to allow the sell or to ask for refund of advance money with interest..
Devajyoti Barman
Advocate, Kolkata
12504 Answers
160 Consultations

5.0 on 5.0

the intending purchaser is likely to approach court if there is dispute amongst the 12 members, he would not allow any dispute to interrupt his purchase. Rs.100/- stamp paper would be grossly insufficient, the purchaser will have to pay up the differential stamp duty plus penalty. only on due compliance will the court hear the case.
Kiran N. Murthy
Advocate, Bangalore
987 Answers
86 Consultations

5.0 on 5.0

1. The purchaser is right. The period of 4 months begins from the date on which the advance amount was paid by him.

2. The above being said, nobody can tell what will be the decision of the court in the event the dispute is adjudicated by it as a courtroom battle has uncertainty written all over it.

3. The sellers should go ahead with the deal as the purchaser has not seemingly done anything illegal.
Ashish Davessar
Advocate, Jaipur
22966 Answers
631 Consultations

5.0 on 5.0

Its not purchaser's fault that the document was not signed earlier and unless & untill a document is signed by the parties to the contract, the contract is not complete. Further, your contract should have clause mentioning the beginning of four months time period for registration.Since it's not purchaser's fault, any court will decide in his favour.
Rajni Sinha
Advocate, Mumbai
327 Answers
34 Consultations

4.8 on 5.0

The unregistered sale agreement is not a legally valid document hence it cannot be enforceable.  However, you can file a suit for specific performance of contract on the basis of the unregistered document in your possession and should be willing to pay the stamp duty for it if court orders for it. 
Alternately you can keep a  prayer for refund of the amount paid so far with nominal interest if it is not feasible to enforce the contract.
The dispute between vendors over selling the property will not bind you, it is their problem.
T Kalaiselvan
Advocate, Vellore
34387 Answers
368 Consultations

5.0 on 5.0

1. No body can say in advance what will be the Court decision in future if any case is filed in respect of the present problem,

2. The Court decision depends on the production of documents as evidence, arguments etc.,

3. In the instant case the terms for cancellation as mentioned in the agreement for sale based on which the advance was paid is of utmost importance and the matter will be decided by the Court based on this agreement for sale which was signed by all the sellers. 
Krishna Kishore Ganguly
Advocate, Kolkata
18116 Answers
438 Consultations

5.0 on 5.0

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