• Regarding the registration after decree

Hi, 

I entered into an agreement to sell my land with a builder and due to some unfortunate events I could not able to execute the sale deed.

The Purchaser approached the court on SPECIFIC PERFORAMANCE OF CONTRACT and prayed for execution of sale deed on acceptance of the balance sale consideration. My advocate filed petition under 16(c) of specific performance. The Hon'ble judge passed an interim order on Nov 2020 directing the Plaintiff to deposit the part of sale deed in court. Even though the petitioner prayed to execute the sale deed on acceptance of whole sale consideration, the hon'ble judge passed an order to pay part of sale consideration.

On December 2021, I as a defendant appeared before the Judge and made an endorsement to Decreed the suit. On January 2022, the judgement was delivered and I was directed to register the sale deed by getting the court deposit and remaining sale consideration from the plaintiff. the Decree stated that I should register the property within 2 months. Originally the suit was decreed without cost. I sent an advocate notice in Feb 2022, asking the plaintiff to come forward for the registration.

On March 2022, I received an advocate notice from the Plaintiff stating that ADJ erroneously passed an order decreeing the suit without cost, and the notice also states that the Plaintiff filed a petition to rectify the mistake incurred through an Interlocutory application. Without sending any notice towards us, the ADJ allowed the said IA and amended the judgement and decree as "SUIT DECREED WITH COST". upon getting the certified copies from the court, the above said IA was allowed on 24 February 2022.

I replied to the plaintiff legal notice and informed the plaintiff to come forward the registration excluding the court fee and other cost imposed as I don't want to drag the matter any further.
There is no communication from the plaintiff regarding the registration of sale deed.

I need clarity on the below things, 

Since I am ready for the registration, Can the registration be done by both the parties or can the registration be executed by the Judge?

Also, in the decree, the judge asked the gave time frame as 2 months to execute sale deed, will that time start from original decree which delivered on January 2022 or the amended decree which given on 24th February 2022?

Since the original decree is without cost and it was amended to with cost, can the plaintiff deduct the cost imposed and execute the sale deed or does he need to deposit the entire sale consideration in court execute the sale need through court and do I need to deposit the cost separately? That's where the confusion for me.

If its based on amended decree, Do I need to file for recession of contract, if the plaintiff didn't come forward for registration, on 25th of April 2022 as 2 month time period will end on 24th April?

How can I proceed?
Asked 3 years ago in Civil Law

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6 Answers

  1. If the defendant fails to register the sale deed withing time granted, it will done through an officer appointed by Court.  
  2. Offer to execute the decree without payment of costs is not a complete offer it is only a part offer which the plaintiff is entitled to reject. It is no offer at all.
  3. Limitation will start to run from 24th Feb, the date of
  4. The plaintiff is entitled to deduct the Cost and deposit the sale consideration less costs.
  5. If plaintiff did not come forward for registration, the decree stands cancelled, you need only file memo in Court stating that the plaintiff is not willing to joint registration, hence decree became infructuous.
  6. Your remedy is execute the decree less cost awarded and file an application for recovery of  costs. 

Ravi Shinde
Advocate, Hyderabad
5125 Answers
42 Consultations

Registration can be done by both parties 

 

2) it would be 2 months from date of amended decree 

 

3) you have to deposit costs separately 

 

4) it is necessary to peruse the decree passed by court to advice further 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Dear Client,

As per the facts which have been provided, you need to consult an Advocate and share with him the original and the amended decree to know the current situation in a better way.

Thank You.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

If you have expressed your readiness to execute the registered sale deed in favor of the buyer after receiving the balance of sale consideration amount as decreed by court and fixed a date within the stipulated time by issuing a notice to this effect by registered post, then it becomes the duty of the buyer to get the sale deed registered on his name either on that date or by a request to the seller to fix it on some other date within the time stipulated by court, the seller cannot remain silent over the matter even after receiving the said notice, which clearly indicates that either he is not interested on getting the sale deed registered to his name or he has sufficient money to complete the sale transaction.

In that case the seller can file a petition to the same court to dismiss the suit by setting aside its orders passed with the said condition. 

Alternately as you suggested you can file an IA before the same court seeking its permission to return the advance sale consideration amount received so far and the same be deposited to the court if the plaintiff is not willing to accept or furnish the bank account details and also can pray for recession of contract. Recession is a complete cancellation of the contract, which means all provisions will be terminated. Contracts are cancelled on a variety of grounds.

Under the Contract Act, a voidable contract, when avoided, has been held to become void. When a voidable contract is rescinded, the other party need not perform his outstanding obligation under the contract. The party rescinding the contract must restore the benefit received under the contract to the other party. Any party receiving anything under the contract is liable to restore it or make compensation for it to the other person from whom it has been received.

You can invoke the provisions of section 28 of Specific relief act which states thus:

28. Rescission in certain circumstances of contracts for the sale or lease of immovable property, the specific performance of which has been decreed

(1) Where in any suit a decree for specific performance of a contract for the sale or lease of immovable property has been made and the purchaser or lessee does not, within the period allowed by the decree or such further period as the court may allow, pay the purchase money or other sum which the court has ordered him to pay, the vendor or lessor may apply in the same suit in which the decree is made, to have the contract rescinded and on such application the court may, by order, rescind the contract either so far as regards the party in default or altogether, as the justice of the case may require.

(2) Where a contract is rescinded under sub-section (1), the court-

(a) shall direct the purchaser or the lessee, if he has obtained possession of the property under the contract, to restore such possession to the vendor or lessor; and

(b) may direct payment to the vendor or lessor of all the rents and profits which have accrued in respect of the property from the date on which possession was so obtained by the purchaser or lessee until restoration of possession to the vendor or lessor, and if the justice of the case so requires, the refund of any sum paid by the vendee or the lessee as earnest money or deposit in connection with the contract.

 

You can discuss with your advocate and proceed as suggested. 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

He needs to pay cost in addition to the decree conditions passed by court

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Ideally you ought to have been heard by the court on the IA taken out by the Plaintiff for amending the decree to include cost of suit 

As the court passed order on that IA ex parte against you, you may apply to the court for setting aside that ex parte order

However you need to check the original suit as filed. Did the plaintiff asks for costs of the suit? If yes then since you made an endorsement on the plaint that the decree be made, then it would mean that even the cost is decreed against you. However the quantum of the cost will be stated in the decree. If that's the case then you cannot file an application to set aside the ex parte order allowing the Plaintiff's application for amending decree to Include cost 

You will have to deposit the cost also with the court 

If the Plaintiff doesn't come forward for registration within  the stipulated period then you can apply for withdrawal of your money deposited with the court and also file a separate suit against the plaintiff for rescission of contract and to recover the money so far paid to the plaintiff with interest 

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

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