Unregistered agreement is in admissible in evidence
2) father can sell property to third party and use sale proceeds to repay the debt
3) in alternative let creditors seek auction of property for recovery of dues
Property sharing among family
Hi, My father made agreement on two properties distribution in 2013 in favor of my elder brother as he is having some financial problems. Asper that agreement property 1 is giving to my brother worth of 1.5 crore and property 2 worth of 50 lakhs and giving me 20 lakhs cash only due to my brother financial problems. My brother told he may not able to pay debt and he may keep IP .(running away without paying debts) in above un registered document my father, my elder brother and me signed. My brother somehow managed paying few debts and died recently due to corona and my father planned to clear full debts by selling property 1 1.5 crore and clear debt. Property 1 is on my father name evethogh aggrement done on my brohter name (un registered). For many credits , my father given surity and my father want clear debts by selling property 1 of 1.5 crore but my broher family not supporting sale of propery 1 . They are saying this propery 1 given to us in 2013 and made aggrment. they will file a case if my father planned to sell. 1. can we cancel the unregisted document now? (my father , my brother and me signed) 2. can my father make fresh aggrement/register with new buyeror not . 3.after sellingthis property to new buyer and if my borther family file case based on old aggrement, what is soluion. 4. i have paid only 7.5 lakhs as per aggrment, can we say as this full 20 lakhs not paid, this aggrement is not valid? 5. if we do new registered agreement that we are cancelling old unregistered aggrement, is it feasible solution?
Asked 4 years ago in Property Law
Religion: Hindu
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5 Answers
- The agreement executed in 2013 is invalid and cannot be enforced, as Court will not admit it, being time barred.
- An invalid agreement cannot be cancelled. If you try to cancelled it will be presumed that you are accepting the document .
- No case can be filed relying on sale agreement executed in 2013. It is time barred.
- The agreement is now useless piece of paper. It cannot be used for recovering 20L.
- There is no need to cancel which has no legal value. If you mention it in any document you are reviving it. Your putting life in something which is dead.
1. The unregistered document is not valid in law, hence your brother's wife cannot succeed in her attempt to claim your father's property.
2. Your father can very well sell the property which is still lying on his name.
3. Challenge it properly as per law and merits in your side.
4. Your case is different to that of the unregistered sale agreement made to your deceased brother.
5. Since the unregistered agreement is not valid your father can very well proceed with his proposed sale of property to a third party purchaser.
1. Yes
2. Yes
3You need to contest it
4. You need to prove it if made too
5. Yes but it can only be cancelled by parties who executed it
Dear Client,
Supreme Court has held that an unregistered family settlement document is admissible to be placed “in” evidence if it does not by itself affect the transaction though the same cannot be allowed “as” evidence.A family agreement is a valid, legally binding and enforceable contract, and is applicable to all the signatories. An oral agreement recorded as a memorandum is also readily admissible in court.A registered sale agreement is valid for three years. In the presence of a negative clause in the agreement, for instance, if the buyer is required to register the property within three months, the limitation is then extended by such period.Family arrangements are governed by a special equity peculiar to themselves, and will be enforced if honesty made, although they have not been meant as a compromise, but have proceeded from an error of all parties, originating in mistake or ignorance of fact as to that their rights actually are, or of the points
Thanks & Regards
