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(Querist) 11 April 2009 This query is : Resolved 
Dear Sir,

I am a real estste agent engaged in sale of plots.On 4/11/1993 I had issued a letter to Mr.A accepting Rs.50,000/- towards advance of a plot and issued receipt for the same.There is no time limit had mentioned for the execution of sale deed.Mr.A omitted to purcahse the land and we sold the land on 2001 to a third party. On 15/09/2008 Mr.A had send a legal notice for specific performance of the contract.

My questions are

1) Whether the claim by Mr.A is hit by limitaton act or not ?

2) Whether Mr.A is eligible for compensation as the agreement become unenforceble as we sold the property to a third party?

Kindly advice.

Thanks and Regards


adv. rajeev ( rajoo ) (Expert) 11 April 2009
Claimn by A is hit by limitation, because within 3 years from the date of execution of agreement of sale, otherwise no value for the deed.
When his calim it self is time barred, he is also not liable to calim the compensation
M. PIRAVI PERUMAL (Expert) 11 April 2009
The contents of the legal notice if revealed would provide light as to what plea Mr. "A" has taken. So as to give a clear and correct opinion.
Y V Vishweshwar Rao (Expert) 11 April 2009
Mr jaadish Govind !

I partly agree with the learned friends and further add tha;-

The Details are not menioned regardign the date of Agreemtn , whther you hold a right in the proerty to transfer the plot to the A , whether the entire sale cosnideration is paid by A and Possession was delivered to A And that the Limitation for specific performance is three years form the date of your denial of the Specific performance , it is not 3 years from the dat of Sale agreement .

Pl. apply the same to facts of your case.
sanjay singh thakur (Expert) 11 April 2009
Dear Mr. Jagdish
To reply properly to your query copy of agreement is essentially required. However, prima facie it appears that though time in not essence of the agreement but still as the agreement is too old hence Court will presume reasonable period and in terms of that it appears to be time barred. Better don't give reply to legal notice or get it prepared by a good lawyer.
n.k.sarin (Expert) 12 April 2009
Dear Jagdish, your query is quite clear. In my opinion there is no relevancy of the said notice. On the basis of receipt one can not file a suit for specific performence. As far as recovery of money is concerned, the time limit is three year from the date of denial. Op can not recover the money from you in any manner. One thing which is most importent if you had given reply of the said notice the fresh limitaion start.
Yash (Expert) 12 April 2009
Shortly answering, Law never helps a person who sleeps over for years for his right. In your case, let us add another maxim in simple language that it does help a bona fide purchaser for value.

Though some more details are required to answer your questions, answers are following...

1. Yes, the claim is time barred (three years from the denial to perform) apparently, except if the possession was handed over and substantial consideration was paid to you. In fact, question of delay, latches, waiver, estopple, etc. will be the prime questions if the said person files a suit for specific performance. Thus, even if suit is successful, he cannot obtain a decree against your purchaser if he is proved to be a bona fide purchaser for value.

2. Compensation shall certainly be payable even if the person was sleeping over as its not a simple debt. However, it may be limited to the amount paid by him alongwith interest, if the Court awards the same in its discretion.

I differ from Mr. Rajiv as limitation is not three years from date of agreement. Rather Mr. Rao and others are right.
JAGADEESH GOVIND (Querist) 13 April 2009
Dear All,

Thanking you for your valuable information.
I am also thinking to defend the case by arguing the claim is a "barred claim".But my only worry is the notice send by Mr.A.However in my reply letter also I had defeded the claim of Mr.A as a barred claim.

I do agree with Mr. Sarin.

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