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Unregistered service agreement

Querist : Anonymous (Querist) 31 May 2021 This query is : Resolved 
Dear All, can an unregistered service agreement executed between two companies for providing some services can be effectively enforced before the court (MSME / Civil Court / or other forum)
Sankaranarayanan (Expert) 31 May 2021
State the facts clearly .
Querist : Anonymous (Querist) 31 May 2021
1. Company A appointed Company B for sale of product, service charges are to be X % of the sale amount as per the service agreement (unregistered), Can company B sue of and get relief for non payment ?

2. Can the service agreement be registered ?
SHIRISH PAWAR, 7738990900 (Expert) 31 May 2021

As per my opinion, you can make a legitimate claim as per the terms and conditions of the agreement. Contact local advocate for further legal action.
Advocate Bhartesh goyal (Expert) 31 May 2021
Yes, All agreements are not required to be registered Certain agreements are required to be registered under sec 17 of Indian Registration Act I.e sale agreement,Adoption agreement and lease deed more than 12 months period are required to be compulsorily registered.questioned agreement does not come under the ambit of sec.17 of Indian Registration Act.It is in regards to sale of products and service charges on sale amount so it does not required to be registered.B company can file suit against A company on basis of said agreement and claim the relief.
kavksatyanarayana (Expert) 31 May 2021
If the Agreement between A & B is stamped with Rs.100/- then B company can file suit against company A. The Registration of the Agreement is not compulsory. If the agreement is not stamped, before filing you can be got it validated by the Collector under Sec.38(2) of the Indian Stamp Act, 1899. In some cases, the courts will impound Sec.33 of the Indian Stamp Act, 1899 and send the unstamped agreements to the Collector under Sec.38(2) of the Indian Stamp Act, 1899 for validation. So consult a local advocate for further guidance.
Querist : Anonymous (Querist) 01 June 2021
Thank you so much Goyal Sir and Kavksatyanarayana Sir
Dr J C Vashista (Expert) 01 June 2021
I fully agree and endorse expert advise of Mr. Bhartesh Goyal and Mr. KAVK Satyanarayana.
Registration of an agreement differs from its covenanted requirements, which may or may not be there.
However, registered document has its authenticity and evidentary value, which may not be there for an unregistered agreement.
ashok kumar singh (Expert) 01 June 2021
Even if the Agreement is not registered, Contract between the parties exist and sustained meaning thereby binding on the parties of the agreement, therefore you can place you claim, in terms of prescribed covenant therein.
you can place your complaint before the competent Civil Court or any other forum or commissions, so far.
you can place your claim before the National Company Law Tribunal ( NCLT ) under the Insolvency & Bankruptcy Code' 2016 ( Section 9 of I & B Code ), against the Corporate Debtor.
ashok kumar singh, advocate
P. Venu (Expert) 01 June 2021
Yes, the agreement need not be registered. A civil action lies unless the agreement provides for arbitration.
Sankaranarayanan (Expert) 02 June 2021
yes i do agree with can sue
T. Kalaiselvan, Advocate (Expert) 02 June 2021
The agreements of this nature may not have to registered as a mandatory requirement.
This agreement acts as evidence hence on failure or breach of the conditions, the aggrieved party can file a suit for specific relief by producing the copy of the agreement as documentary evidence to prove his case.
You can very well proceed with the proposed suit to be filed against the company which failed to comply with the conditions of the agreement or breach of contract conditions.

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