Law suit

Sashi Kumar (Querist) 14 May 2015 This query is : Resolved
Experts Please Advice

I sold my property to my Daughter last week and the sale deed was registered with the sub registrar.

Now I have received a lawsuit in the mail from a previous buyer with whom I had a purchase contract 3 years back which was cancelled by me due to non performance of the buyer. The buyer did not make the part payment or the final payment before the specified contract date. The 10% deposit was forfeited due to non performance of the contract.

Now after 3 years the old buyer has filed law suit for specific performance.

1) Is the sale to my daughter valid?

2) Can the court get the new buyer (my daughter) involved in the court case?

3) While the law suit is going on can my daughter sell the property?

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Jeetender Gupta (Expert) 14 May 2015
A civil suit for specific performance can be brought within 3 years from date of breach of contract. Has the case been filed within 3 years? Did you get a notice before suit? If there was no stay the sale was valid but court can always reverse it. I will suggest avoiding any further sale at this stage without informing the new buyer that a Suit is pending.

P. Venu (Expert) 14 May 2015
How the 10% deposit was forfeited?

Better come to an amicable settlement by returning the deposit amount.

Sashi Kumar (Querist) 14 May 2015
We offered the buyer verbally to take his 10% deposit back after he did not perform.

we needed the money at that time but he did not pay the balance money.

But now he claims to get either double deposit or buy the property. Now we do not want to sell.

Yudhish Padman S (Expert) 14 May 2015
Dear Sashi Kumar,

If what you had stated can be proved before a Court of Law, then

Answer to Q1) YES.
Answer to Q2) YES.
Answer to Q3) YES. If she has been impleaded as a party in the suit and summons have been sufficiently served on her, then obtain permission of Court before alienating property.

Dr J C Vashista (Expert) 15 May 2015
What are the terms and conditions of the agreement to sell with the previous vendee, is to be seen before rendering any opinion and advise.
Did you issue (written) notice for non-performance of his (previous vendee's) part of contract and forfeiture of earnest money? If yes, it is valid.

Guest (Expert) 15 May 2015
Depends upon the terms & conditions of the formal agreement entered in to with the previous vendee. The agreement is required to be gone through before arriving at some final opinion.

T. Kalaiselvan, Advocate (Expert) 15 May 2015
First of all ascertain if the sale agreement with the purchaser was a registered one or not. Next the terms of agreement including the time limit mentioned in the agreement as well as the mandatory notice to either cancel the agreement in view of expiry of time limit by the vendor or a notice by the purchaser informing his ready and willingness to perform his part of the contract and few other aspects are to be confirmed for maintainability of the suit. The sale of property to your daughter, in my opinion was hurriedly done by you to avoid selling it to the buyer in view of the escalated rate of the property and also you did not want to lose that forfeited 10% amount but you are asking advise to escape the legal obligation (?) Discuss with your lawyer and proceed.

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