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Entered into agreement when there is a case in court

(Querist) 27 August 2012 This query is : Resolved 
Dear Sir,

We Own a property of 3.5 Acers & had bought tractor on the property by way of loan & my sister has filed a suit on the property as it was a earned by my father & at the same time a known land developer had approached for the land & we had disclosed the issue & he agreed to buy 1 acer of land & entered into agreement for Rs.25,50,000/- & has received just received Rs.1,00,000/- as advance & he agreed to settle the dispute between me & my sister but when my sister disagreed for the proposal he has filed a suit in the court to make him also a party for the property & is telling that he will never leave the property & will fight for it.

I wanted to know whether the agreement entered into when a case is prevailing will be a valid or will it stand Void?
& under what sections can i safegaurd myself from the developer.

Request you to suggest me & do the needful.
Guest (Expert) 27 August 2012
The question arises, whether the fact of the court case was mentioned in the agreement and in what context?

Also, whether there was any stay order on sale of the property or not, on behalf of your sister?

However, the solution to your problem solely depends upon the nature of contents of the agreement.
Raj Kumar Makkad (Expert) 27 August 2012
I fully agree with the opinion of Dhingra ji. Until and unless the contents of the sale-agreement are not observed minutely, no comment can be made. One thing is very helpful for you that the alleged agreement had not been registered so the same is not executable as per latest law so get benefit of this legal provision.
Devajyoti Barman (Expert) 27 August 2012
Yes attach your sale agreement for its perusal by us.
ajay sethi (Expert) 27 August 2012
agree with experts . without going thrrough the clauses of agreement it would not be possible to advise
rakesh (Querist) 27 August 2012
Dear Dhingra ji,

There is no stay order on the said property.

The below said points have been stated in the agreement.

Agreement Dated – 20.01.2010.


Stated as there is no case prevailing on the said property.

Stated as we have to clear our personal depts. Hence we are selling our property.
And has received 1 lakh. as consideration.

As per both the parties mutual consent that the within 3 months of the agreement dated will register the property to your name.

And there is no court case or any loan on the said property.

If any court case or any loan is not there on the property, We shall be bound to clear all the discrepancies & give to you.

AS it mentions as 3 months time period. the case was filed on 27.07.2012 will that agreement stands cancelled?
And as there is Loan & the Property is already having a partion suit will the ageement stands canceled?

And is there any chance that we agree to return Rs1,00,000/- the amount received & cancel the agreement?

Request you to please suggest on the above
What can be done.

Thanks for the valuable suggesion Raj Kumar ji.
Guest (Expert) 27 August 2012
A fatal agreement for you so far as the followinng clauses of agreemennt are concerned:

- Stated as there is no case prevailing on the said property.

- And there is no court case or any loan on the said property.

The developer would take advantage of both the clauses, as the court case and dispute with your sisster exiswted when you entered in to the agreement. In this case, your sister will confirm about the court case in favour of the developer, as she has also been made a party.
Raj Kumar Makkad (Expert) 27 August 2012
In the light of subsequent facts mentioned by you, it is strongly recommended not to go ahead in the matter.
Dr J C Vashista (Expert) 28 August 2012
I agree with Mr. Makkad and Dhingra ji,get the matter amicably settled "Out-of-Court" first with your sister and then vendee.
rakesh (Querist) 28 August 2012
Dear Sir,

So as of now should i fight in the court or will it be better if i go ahead for a compromise & try to settle the matter with all of them.

Please suggest.
Guest (Expert) 28 August 2012
Compromise with your sister will be beneficial in case the builder gets you forcibly dragged in to litigation, as he would prefer to take advantage of the damaging clauses to make a strong case of cheating, fraud and breach of trust against you by entering in to agreement, which can lead to several years of jail for you. Besides he can insist on enforcement of the areement for selling of land of your portion at damn cheap rates. In view of the written clauses of agreement, he would never admit that you had already told him about the court case.
Sudhir Kumar, Advocate (Expert) 28 August 2012
In either case since the property belonged to your father and your sister was claimant and you were never the sole owner and could not enter into contract solely without taking your sister in confidence.

You said that there is no case pending on the date of agreement but did you disclose to the developer that your sister is also a succesor.

I agree with experts. Ther eis no point to follow this case you are caught in your own web
rakesh (Querist) 28 August 2012
Dear Sir,

AS the buyer is free to inquire about the Property which he is going to purchase which he has failed to do so & we are agreeing to pay back the value which has been received (i.e. just 4% of the agreement value)to the developer. will this not help me saying that
even he is not performed the background verification before purchase & entered into agreement?
Guest (Expert) 28 August 2012
Nothing can be said on behalf of the buyer. Moreover, the buyer was not obliged to perform background verification. It was you who should have assured him a clear title of the property. You have clearly stated that you kept him informed about the position of the case. Naturally, the buyer intended to trap you in your own net, when he included two clauses in his own favour to damage your theory.

Clearly, you are at the receiving end where you are in the dire need to form a strong defence strategy for you with the help of some well experienced expert on the issue.
Sudhir Kumar, Advocate (Expert) 28 August 2012
His failure to to detailed jasoosi is not a license for you to misrepresent yourself as full title holder.

Compromise your way out.
rakesh (Querist) 29 August 2012
But i found out that we have not signed on 1 sheet i.e., the backside of the first sheet in the agreement in which the value has been mentioned.

will this help to us?
Sudhir Kumar, Advocate (Expert) 29 August 2012
at least not in cheating case.

You have been repeatedly told that in totality this case is against you. Still you want to follow it it is your choice.
Guest (Expert) 29 August 2012
It would be better for you if you visit some local lawyer with all your queries and show the agreement and the court case instead of making your own interpretations of various contents of the documents and get appropriate guidance for your defence.


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