Member have possession letter but no agreement

Dinesh Kandpal (Querist) 04 December 2023 This query is : Resolved
Dear Sir,
We have a peculiar case in our society and need your guidance.

The member entered into an agreement with the builder for "X" flat and did stamp duty / registration as well.

Later, it was identified that said flat was mortgaged with the bank and bank was not giving NOC to the builder.

In order to resolve the issue, builder gave possession letter of another flat "Y" in lieu of "X" to the member, but didn't enter into agreement of the new flat and stamp duty / registration didn't happen.

Also, builder sold the original flat "X" to another buyer and also did agreement, stamp duty / registration.

Society issued share certificate to the flat owner who showed documents for flat "X" and the original owner in the absence of documents for his flat "Y", society is not able to help him.

Please advise what remedy is possible so that the genuine flat owner woes are resolved.

Thanking you

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Quick Summary

A homeowner received a possession letter for a new flat from a builder as a replacement for an original flat that was mortgaged. However, no formal agreement was signed for the new flat, and stamp duty/registration were not completed. The builder has since sold the original flat to another buyer and is now under NCLT administration. The homeowner is seeking legal recourse to get a signed agreement for the new flat and avoid additional costs, as the original builder had agreed to cover these expenses.

Sudhir Kumar, Advocate (Expert) 04 December 2023
given facts indicate it as a fit case for consumer court.

Dinesh Kandpal (Querist) 04 December 2023
The builder is under NCLT and IRP cannot do anything. Is there any other legal option?

kavksatyanarayana (Expert) 04 December 2023
It is a fraudulent registration. The builder sold the X plot twice to two persons without cancelling the previous one. So you file a case against the builder to cancel your document and the builder shall repay the consideration paid by you.

T. Kalaiselvan, Advocate (Expert) 05 December 2023
You can give a criminal complaint agaisnt the builder for this fraudulent activity.
But the fault lies on you too for accepting the property without registration of sale deed in your favor.
You can file a suit for specific performance of contract against the builder to execute a sale deed in your favor since he has already received the entire sale consecrations amount and also had delivered possession with allotment letter.

P. Venu (Expert) 07 December 2023
When did these transactions take place?

Who is the owner of the flat Y? Is it the said builder?

Dinesh Kandpal (Querist) 09 December 2023
sir, the first agreement was done in 2003 and flat was fully paid. builder gave possession letter and allotment letter for another flat in 2008 but never signed or helped register the agreement. builder is in nclt and irp professional is appointment. is there a legal remedy that can help get his agreement signed and stamped now.

P. Venu (Expert) 09 December 2023
What do you mean by "builder is in nclt and irp professional is appointment"? Is this apartment covered in those proceedings?

Any how, already suggested, the remedy lies in a civil action. unless, of course, there are deeper issues.

Dinesh Kandpal (Querist) 15 March 2025
Sir, the builder informed the flat buyer that the said flat which was signed, paid stamp duty and registration is mortgaged with bank and cannot be released.
In lieu, he gave another flat to the home buyer, but the agreement was not signed, nor stamp duty or registration done. Builder had agreed to bear stamp duty and registration cost for new allotment.
Now the builder is bankrupt and matter under NCLT.
What should home buyer do in this scenario so that he gets a signed agreement and he doesnt have to pay stamp duty and registration charges again which is now 10 times the original cost he had paid.
Pls guide.

Dinesh Kandpal (Querist) 16 March 2025
Sir, the builder informed the flat buyer that the said flat which was signed, paid stamp duty and registration is mortgaged with bank and cannot be released. In lieu, he gave another flat to the home buyer, but the agreement was not signed, nor stamp duty or registration done. Builder had agreed to bear stamp duty and registration cost for new allotment. Now the builder is bankrupt and matter under NCLT. What should home buyer do in this scenario so that he gets a signed agreement and he doesnt have to pay stamp duty and registration charges again which is now 10 times the original cost he had paid. Pls guide.

T. Kalaiselvan, Advocate (Expert) 30 April 2025
The buyer can approach court for relief and remedy.You can file a suit for specific performance of contract against the builder to execute a sale deed in your favor since he has already received the entire sale consideration amount.

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