Property civil suit

Sashi Kumar (Querist) 28 June 2015 This query is : Resolved
I had a signed sale agreement with a buyer. Buyer started creating problem in giving money by making excuses. Buyer did not make any payment by the due dates specified in the agreement. So finally I gave notice and cancelled the agreement and forfeited the deposit. The contract clearly stated that if the buyer defaults then the money is forfeited.

After 3 years of the sale agreement date I transferred the property to my relative via gift deed. There was no stay on the property and no law suit pending.

Now I am getting information that the buyer is filing a law suit specific performance and for money recovery.

Can the buyer get a stay on the property which I don't own anymore?
Does specific performance work if I don't own that property anymore?

What can the buyer claim in this situation?

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SUBRAMANIAN C R (Expert) 28 June 2015
The buyer can maintain an action for specific performance within three years from "the date fixed for performance" and not the date of agreement. ie; he gets three years from the last date fixed for performance as per the terms of the agreement.
But in case he is able to prove that you were on default, he gets a charge on the property and he can sue for return of advance enforcing the charge for which he will get 12 years. If he is entitled to a charge, then the property has passed subject to the charge. If the time for specific performance was not over, then the relative cannot claim to be a bonafide purchaser for value. Pls consult a local civil lawyer with all papers - agreement, gift etc.

Sashi Kumar (Querist) 28 June 2015
The sale agreement was never registered, can he still qualify for specific performance.

Rasik Dagli (Expert) 30 June 2015
Whether the buyer has served any notice to you?. It is not likely that he will get a stay (injunction ) Even as per CPC court will issue notice before granting any injunction or interim injunction. You can appear in response to notice and contest the application for injunction by producing the registered Gift Deed etc.