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Aniruddha Deodhar   28 March 2019

Can an agreement to sell be converted to Tenancy by arbitrators

Dear Sir,
I wanted to buy a shop and henceentered into an agreement to sell with vendor. He was not having sell deed of the property at that time as he was having some personal issues. He agreed to execute selldeed from builder directly in my name once the building is completed which was going to take 4 months . In our agreement it was clearly written that I will pay him Rs.100000 lack as token amount and will continue to pay Rs.10000 per month as occupation charges for 4 months only which were suppose to be deducted from the final payment at the time of selldeed. Also it was written that if the seeldeed is not executed in 4 months then vendor will refund me entire money and I will be handing over the possession to him. Accordingly I took the possession and paid him Rs.40000 for 4 months plus token amount. Now after 4 months he refused to perform sell deed in my name from builder and instead got it done in his name only behind my back. When I contacted him and demaned my money he refused and instead asked me to start paying 10000 per month as per our agreement to sale terms.
The matter was referred to the arbitrator and arbitrator partly allowed his contention and asked me to pay occupation charges and also asked me to register a suit of specific performance to grt my saledeed. The vendor challenge the said order in court and court has awarded him with occupation charges for 36 months and also asked me to handover the possession to him as i am trespassing in his property.
My question is when i have signed up an agreement to sell with vendor how am I a trespasser? Why should I pay occupation charges for 36 months as i was never his tenant and even after payment i am not getting any selldeed in my name instead court is asking me to handover the possession to vendor.
I always wanted to execute the selldeed and he refused it. Please guide me as I am willing to file an appeal before high court.



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 7 Replies

Kishor Mehta (CEO)     28 March 2019

All depends on the wordings of the terms, conditions and covenants of the agreement to sale deed and whether it was duly stamped, executed and registered.

Aniruddha Deodhar   28 March 2019

The agreement to Sale is not registered . It is on Rs.100 stamp paper. Can send you a copy ...

Aniruddha Deodhar   28 March 2019

The agreement to Sale is not registered . It is on Rs.100 stamp paper. Can send you a copy ...

P. Venu (Advocate)     28 March 2019

The facts, as posted, lacks clarity.

Aniruddha Deodhar   29 March 2019

What kind of clarity is required Sir? Can send you supporting documents..

Sayantan Misra   29 March 2019

As appears from your stated facts, the Arbitral award and court order should not have gone against you. But as pointed out by Mr. Kishore Mehta in the comments, it all depends on the terms and conditions of the agreement. Moreover, you again mentioned that the agreement was not registered. This goes against you, as you should have registered the agreement.
You should consult with your advocate before preferring the appeal.

Aniruddha Deodhar   29 March 2019

Sir, I was and I am always ready to register the selldeed bit owner didn't cooperated. I even had all the papers ready with entire stamp duty fully paid but it was wasted. My only mistake was that I didn't filled a suit of specific performance. But does that amount to cancel my agreement to sale on Rs. 100 stamp paper and convert it into rent / occupation charge? I never wanted that property on rent.

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