Specific performance suit

Sashi Kumar (Querist) 15 February 2017 This query is : Resolved
I signed a sale agreement with a buyer In Feb 2012.
The Sale Agreement was Not Registered.
Buyer paid 10% deposit at the time of sale agreement.
Buyer agreed to pay 1st payment of 20% within one month.
Buyer did Not make the 20% payment before the agreed date saying that title is not clear.
I sent buyer notice letter to pay the 1st payment of 20%.
Registration of deed & Full & Final payment was due within 4 month.
Buyer did not pay 20% and the balance full & final payment before the specific date agreed on the contract.

I sent cancellation notice to buyer cancelling the contract and according to the forfeiture clause in contract, I forfeited the 10% deposit due to non performance of buyer.

In Jun 2015 I gifted this property to my children through gift deed.

Now in Feb 2017 I received Court Summon, that buyer has filed a specific performance suit against me, to sell the property or pay buyer 4 times the deposit which includes interest and damages. It shows buyer submitted documents for suit in court in April 2015 but After 2 years I received the Summon.

I have a Question:

I don't own the property anymore because it was transferred in Jun 2015. Does the buyer still have any right to claim specific performance on the property which I don't own?

Under what circumstances can the buyer claim anything on this property?

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Guest (Expert) 15 February 2017
Article 54 of the Limitations Act The Time Limit for filing the Specific Performance Suit is 3 years .You have also sent a Notice to the Buyer to complete the Transaction Which he had Failed .More Over at the Time of Filing the suit the Property is Not Yours. So Do Not Worry and Legally you are Safe.Consult and Appoint a Local Good Senior Advocate.

Sashi Kumar (Querist) 15 February 2017
Hello Mr Rajkumar. The property was transferred in June 2015. I received the summon Feb 2017 but on the suit paper it shows buyers advocate filed in April 2015.

Does that mean suit was filed before transfer or when I receive the summon that is the date it gets activated.

What date is considered as suit being active.

Guest (Expert) 15 February 2017
Keep the Proof of summon delivered to you on that date April 2017.That is enough and you need not worry.Update your advocate with all details.Better Fix an Good Senior Civil Side Advocate.Any Doubts/Clarification Please Post in the Same Thread.Do Not Worry.More Over for your Kind information any Un Registered Documents/Agreements also Legally Not Valid.

Rajendra K Goyal (Expert) 18 February 2017
The agreement was between you and the prospective buyer, you are the necessary party in the case of specific performance.

Engage some senior lawyer and oppose the claim on merit.