A sale agreement was registered between land owner and agreement holder in the year 2010 July The agreement holder was a PACL group (50000 crore land scam) employee The agreement holder never executed the sale In 2021 land owner executed a joint development venture with different people and developed 43 sites (DC converted) In 2025 All the sites in the layout have been sold out. 20 houses have been constructed Now one of the existing site owner wants to sell the site. We are very much interested to buy since it’s a developed layout with many houses already constructed. But the fear factor is The agreement from 2010 has not been cancelled What are the chances the agreement holder can comeback and file a case? If he files a case, what will be the consequences? Will house owners or site owners face any issue because land owner had the agreement
- As per law, the limitation for the execution of any agreement is limited to 3 years
- Further, the period of limitation of three years shall be counted from the date of expiry of the agreement's validity..
- Hence, now after a period of 15 years the said agreement cannot be executed i.e. no case can be filed on this agreement by the PACL group.
The limitation for filing a suit for specific performance, as per Article 54 of the Schedule to The Limitation Act, 1963 is 3 years ‘from the date fixed for performance or if no such date is fixed, when the plaintiff has notice that the performance is refused.’
In this case, the sale agreement was done in the year 2010. In all likelihood, the agreement holder has no case.
Don’t purchase the plot
2) buyer can file suit to set aside sale deed
3) title is not clear and marketable
4) you would end up running around the courts for 10 years or so
A registered sale agreement for immovable property is valid for three years from the date of registration.
However, the ultimate sale deed must be executed and registered within a reasonable time, which is generally considered to be within that 3-year period.
The limitation period for filing a suit for specific performance of an agreement to sell, as per Article 54 of the Limitation Act, 1963, is three years from the date fixed for performance, or if no date is fixed, from when the plaintiff has notice of the refusal to perform.
In your case neither the buyer issued any notice to the vendor before the expiry of the time limit expressing his readiness and willingness to buy the property by paying the balance of sale consideration amount.
Thus as per law the buyer cannot enforce the registration of sale deed beyond the period of three years.
Besides, the property has been developed into a plotted layout and the entire plot have been sold out over the period from the date of development of layout till this date, besides plenty of buyers have even constructed houses in the purchased plots, therefore there is no possibilities for the buyer to turn up at this stage claiming registration of property as per sale agreement and even if he is filing any case, it will not be entertained by court because the buyer was not given possession too at that time.
you may proceed with the proposed purchase of property but as a precaution you may obtain a proper legal opinion from an experienced lawyer in the local and proceed only if recommended
You need to first cancel the same and then you can seek any step about the same
1. Unless otherwise extended, the limitation of the sale agreement's validity is 3 years from the date of it's execution.
2. In the instant case, the sale agreement was executed in July 2010 and it should have been put into motion before August 2013. , and now it's barred by limitation.
3. Even if the agreement holder files a case, it wont stand due to limitation act, even though the agreement had not been cancelled.
In the worst case, if the agreement holder files a case, what will be the issue we may have to face? Compensation or will the houses be demolished?
Even if the agreement holder files a case, due to limitation, it will be quashed. There will not be a situation of paying compensation or demolition of the houses.
Sale would be set aside
your remedy would be against seller who sold you the plot
mere payment of compensation won’t suffice
The court will decide about it, generally the court will not pass orders for Demolition of constructed houses.
It depends on how the parties fight their case.
You can contest his case on limitation as he didn’t approach you for performance on time
A 2010 sale agreement is likely time-barred (Limitation Act: 3 years to enforce).
If no sale was executed, it holds little legal weight now.
The agreement holder may file a case, but chances of success are low.
No demolitions, but legal disputes may arise.
If the case is accepted, compensation (not eviction) is the likely risk.
The developer, not current owners, would be primarily liable.
✅ Verify title & encumbrance certificate (EC).
✅ Get a legal opinion.
✅ Ensure indemnity from the seller.
Thank you. Shubham Goyal.
The 2010 sale agreement was never executed, and since 15 years have passed, the claim may be barred by limitation under the Limitation Act, 1963. The agreement holder can file a case, but proving rights over the property after such a long delay is difficult. Since the land was developed, sold, and houses were built, the court is unlikely to order demolitions but may consider monetary compensation if the claim is valid. To protect your purchase, verify title records, check encumbrance certificates, and get a legal opinion. The landowner should also issue a public notice declaring any past claims void.
- All the sale deed can be affected in case a case filed
- However, there is least possibility for the maintainability of the case
Dear Client,
Since the agreement of sale has already been registered within 2010 but not settled, and the owner later developed and sold off the aforementioned property without lawful termination of such an agreement, certainly there are few legal options to consider. That's how this is most probably going to end up:
1. Can the Agreement Holder of Year 2010 Return and File a Case?
Yes, the agreement holder is free to file a case, but success is their destiny depending on various things
Limitation Period: Under the Limitation Act, 1963, the limitation period for enforcing a sale agreement through Specific Performance is three years from the date on which the agreement was violated. Since the agreement was signed in 2010 and nothing was done, the period of limitation would have likely expired in 2013 unless extended by fresh payments or admissions.
Doctrine of Laches & Acquiescence: The court will consider whether the holder of the agreement slept on their rights for 15 years, and the land became developed, sold, and possessed, which reflects no intention of invoking the agreement.
Legal Standing of PACL Group: If the holder of the agreement was an employee and not the actual purchaser, the legal standing in seeking possession is questionable.
2. What If They File a Case?
If they sue on a case of Specific Performance, it will be rejected since the limitation period would have expired.
They might sue for damages for breach of contract, but the burden of proof would rest with them to prove that they had paid consideration and had intended to complete the sale.
If fraud or suppression of fact is alleged, the case would take longer, but reversing all transactions is a distant possibility.
3. Will House Owners or Site Owners Face Any Issues?
The current site owners have obtained registered sale deeds; hence they are bona fide purchasers for value without notice of defect.
Courts are reluctant to interfere with third-party rights, especially where multiple transactions, construction, and public interest are involved.
The worst-case scenario may be compensation being demanded from the original land owner, rather than demolition of houses.
Hope this helps you; if you still have any clarifications or issues, do not hesitate to ask.
1. The said agreement holder might file a case for specific performance against the land owner who has already sold/developed his land.
2. It might be the clever ploy of the land owner to enter in to an agreement with his own person and get a case filed by the said party against the owner to deprive the present buyer of the developed properties.
3. Without perusing the agreement entered in to with the other party, nothing can be foretold or assumed.
1. The said agreement holder might claim that you knew about the said agreement and even then you have ventured to buy the said property.
2. You shall have to submit reply to the said ground.