Sec 16 (3) of india contract act
george
(Querist) 21 May 2015
This query is : Resolved
Sir,
As per Sec 16 (3) Of India Contract act,whether both aspects a) the fiduciary relationship between the party that one person is in a position to dominate the other and b) the transaction is on the face of it and on evidence unconscionable should be there to make a transaction invalid
OR
If either any one of the above two aspects is there ,it is enough to make a transaction invalid.
george
(Querist) 22 May 2015
The relevant facts of the query is:
sirs,
A sale deed instead of Mortgage deed was obtained from my mother by fraud. The actual land area 4500 SF and House area 850 SF.In the sale deed the buyer dishonestly valued 150 Sq feet only in the valuation column and stamp duty is also paid for the 150 Sq.feet area house only .whereas he has valued and paid stamp duty for 4500 SF. i.e 100000 for 150 SF House and 25000 for 4500 SF. He gave 125000 only for mortgage loan. Actual value of the house is 1500000/- (Value of House building only). The house was never intended by my mother for sale.whether the deed can be challenged in court under undue influence under Sec 16 (3) of Indian Contract Act. Because he has cheated by executing sale deed.Sale deed can not be cancelled. Hence Whether the above transaction can be taken as unconscionable transaction or fraud. to make the entire deed as void.
ADV-JEEVAN PATIL, MUMBAI
(Expert) 21 May 2015
