Legal binding of a sale agreement
Santhosh K K
(Querist) 02 December 2013
This query is : Resolved
We executed an agreement and was offered an advance while performing the sale agreement for the property. It was mentioned that it would be registered within 3 months which was not adhered to. What is the implication if one does not agree to go ahead for selling the property as per the agreement for the issue now lies in the court?
What would be the percentage of interest that one would have to pay for the money taken as advance while returning it back as might be approved by a court of law?
BAALASUBRAMANNYAMM
(Expert) 02 December 2013
In case, if the seller did not agree to register the sale deed in favour of the buyer within 3 months, as per in query, the buyer is at liberty to file a suit for "Specific Performance" of the sale agreement before the court.
If you say on the other, the advance amount received by the seller, would be returnable with a nominal bank interest or the percentage which strictly mentioned in the sale agreement
Adv Archana Deshmukh
(Expert) 02 December 2013
It would depend upon the facts and circumstances of the case. The court may order specific performance in its discretion if the plaintiff has prayed for that. If refund of money is ordered then, the court determines the interest rate and there is no fixed rate of interest.
Rajendra K Goyal
(Expert) 02 December 2013
Court may direct for specific performance. If Court directs for return of money rate on interest would also be decided by the court.
R.K Nanda
(Expert) 02 December 2013
agree with experts.
Biswanath Roy
(Expert) 02 December 2013
Suit for Specific Performance of Contract shall be the correct remedy. Determination of interest upon advance payment shall be made by the Court.
Santhosh K K
(Querist) 02 December 2013
But over here the buyer did not respond on time and when we had a lawyer's notice sent, my opponent(Buyer)filed a suit for Specific Performance to cover up. Now since I am not interested in selling it for the moment, what would the consequences for not going ahead with the sale registration.
P. Venu
(Expert) 03 December 2013
What is the reason for not registering the sale deed as agreed?
Santhosh K K
(Querist) 03 December 2013
It was by unethical means and we being forced to sign the agreement, which we were not interested in selling. The buyer is politically connected due to which even my complaint was not accepted at the Police station. After having sent a lawyer's notice, it is only I who had to undergo the pain with the buyer and his men threatening me with dire consequences for having done so as he had enough freedom to do what he wanted for he could influence the executive with the political connection he had. We were actually living in fear. Since the buyer filed a case for special performance months later, and the issue now lying in the court gave me a bit of courage to move around in peace.
Rajendra K Goyal
(Expert) 03 December 2013
Was there any correspondence within the time given for registration, between the buyer and the seller, for effecting the registration. Is there any proof that the buyer did not get the registration done in time and if so why?
Santhosh K K
(Querist) 03 December 2013
There were only verbal discussions which ended up with quarrels each time we met and spoke about it and I being threatened. None of the neighbours would even come out to support us in this regard knowing the character of the buyer. Two weeks before the buyer filing for special performance, he had come asking for the original documents stating that it would be registered within four days, which I refused to hand it over to him.
P. Venu
(Expert) 03 December 2013
Contracts borne of coercion is voidable. You can resist the suit for specific performance on this ground and can make a counterclaim for the agreement to be declared void.
Santhosh K K
(Querist) 03 December 2013
I thank you all for answering all my queries and am much obliged and hope justice is served.
The fear in us, is that these people who are well connected would not mind going to any extent for their personal gains and motives and we have none on our side to support and they have many a times verbally expressed it.
We actually live in a place which follows the law of the jungle, where might is right. I am sorry to say that, but that is what I have experienced through this whole episode. Many know the history and how these people have grown, but none would dare voice it in public. We therefore out of fear for the lives of our kit and kin indirectly allow these people to function and grow and for which it is the corrupt government machinery and politicians over here who are responsible for it. The common man is left helpless in this so called civilized society.
P. Venu
(Expert) 03 December 2013
Fears, most often, are irrational and ill-founded. It is no solution to any issue. The suit filed by the prospective buyer, if properly pleaded and defended, is the golden opportunity to avoid the agreement to sell.
