Validity of sale deed/lease deed & succession
Shiv
(Querist) 21 November 2014
This query is : Resolved
X-Husband and Y-wife are having a estranged married relationship and they are leaving separately for over 20 years (not divorced). They have a dispute over immovable property. Lease deed of property is in the name of X-husband and he is in possession of property. Y-wife has filed a suit for declaration, injunction and possession of title of property and prayed for declaring X-Husbands Lease Deed to be declared null & void and to make new Lease Deed in her name.
Brief history of the case:
A land was purchased from by a registered sale deed between land-owner and proposed co-operative housing society of plinth/plots and the consideration is paid. The Lease deed was performed between proposed Co-operative housing society after paying full consideration and X-husband and he constructed a commercial structure over it. The same Lease Deed was challenged in the court by the Y- wife claiming to be a first allottee of plot on the basis of communication from chief promoter on letter head. Suit filed by Y- wife was dismissed on the grounds of jurisdiction. Y-wife preferred a Appeal in higher court against the order.
During the pendency of Appeal X-husband died. The Appeal also is been dismissed.
Questions to be answered:
1) Is sale deed between land-owner and proposed co-operative housing society(CHS) legally valid? since Supreme court in his earlier ruling has observed that proposed CHS being non-existing entity can not enter into any contract.
2) Is Lease deed between proposed co-operative housing society (CHS) and X-husband legally valid? as per apex courts observations.
3) Can the original land-owner enter into new sale deed? on the grounds mention by ruling of supreme court that, proposed CHS is not a legal entity and the contracts entered into such CHS is not a valid contract in the eye of law and it could not be enforced against land-owner.
4) Having rival claim over property during lifetime of X-husband can Y-wife after his death claim the same property on the grounds of succession acts? Especially
when her claim against X-husband has been dismissed by courts?
ajay sethi
(Expert) 21 November 2014
unless and until sale deed between land owner and proposed CHS is set aside original land owner cannot enter into fresh sale deed
once property has been sold by landowner by registered sale deed he has no right , title , interest in property . .
wife is one of legal heirs of deceased husband . she along with children would inherit his property on his demise unless he has bequeathed said property by will .
Raj Kumar Makkad
(Expert) 21 November 2014
1. As the suit filed against such sale/lease-deed has been dismissed and the sale-deed has been upheld, no more comment is required thereupon except that the second appeal can be got preferred.
2. Title remains no more with the seller.
3. No. The given judgment is not applicable over the facts of the case in vogue.
4. Law of Succession definitely favours her along-with other legal heirs of the deceased.
Shiv
(Querist) 24 November 2014
Dear Experts thank you for your valued opinion.
However I would like to state that,
1. I agree with your view on "setting aside Sale Deed". The question is in current scenario who has the right to set aside the existing sale deed as well as Lease Deed. (i) Can only Land owner file suit in that respect OR any new potential buyer can file such suit.
2. Regarding your views on "no right of land owner"
(i) I would like to refer to Section 36 of Maharashtra Co-operative Societies Act 1960 from the section 36 it can be observed that, co-operative housing society can enter into any contract to acquire, possess or sale any immovable property only if it is a registered co-operative society.
In our scenario we can say that proposed CHS being unregistered CHS entering into a contract of Sale with Land Owner AND contact of Lease with X-husband is not legal.
Since unregistered/proposed CHS can not enter in to any contract and such contract is not legal in eyes of the law. How can such illegal contract be binding on Land Owner.
(ii) Just because it is registered document doe that mean it is a valid & legally correct contract?
3. Regarding Succession : I agree with your point on succession in general. But the issue here is whether the title acquired by X-husband is legal in the eyes of the law as per reference made above regarding Maharashtra Co-operative Act 1960 & whether such CHS has right to transfer any property.
4. The real question is can unregistered/proposed CS enter into sale deed while purchasing the land AND Leased Deed while selling the land?
5. If According to Maharashtra Co-operative Act 1960 and supreme court
judgement, the registration of CHS is required to consider it a legal entity and till CHS is not registered such unregistered/proposed CHS is non-existing entity. In such circumstances, How can a contract entered into by such non-existing entity be enforced on other party.
6. Land owner has fulfill his part in contract but the CHS being non-existing entity and not being legal entity as failed to fulfill its part in contract. So it is on part of unregistered/proposed CHS it fails to comply with requirements as per law, And for that failure Land Owner can not be held responsible & hence such contract can not be enforce on him.
