Registration of mou
Sreenivasa Rao. S.
(Querist) 25 June 2013
This query is : Resolved
Sir,
A memorandum of understanding was executed for recovery of Rs,20 Lacks from a civil contractor, by a trader. In future if the civil contractor fails to his commitment as mentioned in MOU legally what kind of action can be taken to recover. Is it required to register the MOU in the court for validation.
prabhakar singh
(Expert) 25 June 2013
I do not know why people use term MOU everywhere?
If MOU told is a lawful contract enforceable between parties then it can be enforced at law by a civil suit with in 3 years from the date of default of promise made.
prabhakar singh
(Expert) 25 June 2013
An MOU with regard to cash compensation is not required to be registered but stamp duty
of state in which it was executed would be payable as laid in state stamp duty Act.
Rajendra K Goyal
(Expert) 25 June 2013
Agreed with the expert prabhakar singh ji. Stamp duty applicable is to be paid and not required for registration.
J K Agrawal
(Expert) 25 June 2013
A agree with Singh sahib. MOU is never enforceable unless it becomes an agreement. This new term is generated by some smart officers of corporate sector who want to show some extra knowledge of law.
If the agreement is some kind of indemnity or guarantee it required a different stamp duty, if it is in form of sale of actionable claim the duty is different.
If it is sale of actionable claim it is advisable to give notice under s 131 of TP Act but no notice is required to any Court.
Registration of such an agreement although not required but it is always advisable to get it registered.
The transferee of an actionable claim may, upon the execution of such instrument of transfer as aforesaid, sue or institute proceedings for the same in his own name without obtaining the transferor's consent to such suit or proceeding and without making him a party thereto.
