Joint venture of residential property

Is the Joint venture agreement registered or not?  Who are the other legal heirs to your mother? Your query is not clear. State facts, please.

Let your mother be advised to show relevant documents to a local prudent lawyer for proper analyses of facts/ documents, professional advise and necessary proceeding. 

You and other legal heirs can join together to enforce the agreement. Any further suggestion requires that the documents be perused and issues discussed.

The JV was not registered.  Mother expired in 2021 and my Dad and I are legal heirs

Even after death of executant (your mother in the  instant case) of the agreement for joint venture it (agreement) is enforcable through her LRs despite the fact it is unregistered.

However, if the terms of agreement have been violated by builder the LRs of executant have a right to get the agreement cancelled/ revoked  by issuance of notice as per terms and conditions of subject agreement. 

What were you doing for all these five years after the death of your mother, you should have initiated legal action immediately at that time, the developer may take a plea of limitation due to exorbitant delay.

However you may proceed as advised by your advocate, hope you have already filed a case in this regard, hence follow it up accordingly

You should file suits in Civil court having jurisdiction. 

Thank you.

The Developer initiated Arbitration proceedings....however to settle the matter....hv requested for some funds and the property documents.....both have not been given yet. 

The Developer has access to his 2 flats 

LEGAL OPINION

Re: Rights of Landowner's Legal Representatives under a Joint Development Agreement

Facts

The applicant states that:-

1.    The applicant's deceased mother entered into a Joint Development Agreement (JDA) / Joint Venture (JV) with a developer.

2.    Under the JDA, the developer was entitled to 50% of the developed property.

3.    The developer/builder has not completed the construction or formally handed over the project.

4.    Certain payments payable to the landowner remain outstanding.

5.    The original property documents continue to remain with the builder/developer.

6.    The developer has initiated arbitration proceedings.

7.    The developer is already in possession of two flats falling to his share.

8.    Despite discussions for settlement, the developer has neither returned the original title deeds nor paid the agreed amounts.

Issues

1.    Whether the developer is entitled to retain the original title documents after failing to perform the contract?

2.    Whether the landowner's legal representatives can seek return of the title deeds and pending payments?

3.    What relief can be sought in the pending arbitration?

1. Obligations under a Joint Development Agreement

A Joint Development Agreement imposes reciprocal obligations on both parties.

The developer is ordinarily required to:-

1.    complete construction in accordance with the agreement;

2.    deliver possession of the owner's share;

3.    make contractual payments, where applicable;

4.    return documents where there is no contractual right to retain them.

5.    Failure to perform these obligations may amount to breach of contract.

2. Retention of Original Title Documents

Unless the agreement expressly creates a lawful right to retain the original title deeds until fulfillment of specified obligations, the developer cannot indefinitely withhold them.

If the developer has substantially received the contractual benefit (for example, possession of his allocated flats), continued retention of the original documents without contractual justification may be challenged before the arbitral tribunal or, where appropriate, before a competent court.

3. Pending Arbitration

Since arbitration has already been invoked, disputes arising out of the JDA will ordinarily be decided by the arbitral tribunal, subject to the arbitration agreement.

The legal representatives of the deceased landowner may seek:

1.    return of the original title documents;

2.    payment of outstanding contractual dues;

3.    damages for delay, if provided under the agreement or otherwise legally sustainable;

4.    directions regarding completion of remaining contractual obligations;

5.    any other consequential relief arising from the contract.

If urgent protection is necessary—for example, to preserve the property or prevent misuse of the title deeds—interim relief may be sought under Section 17 of the Arbitration and Conciliation Act, 1996 before the arbitral tribunal, or, where appropriate, under Section 9 before the competent court.

4. Settlement

If both parties are willing, the dispute may be settled by recording comprehensive terms covering:

1.    return of original title deeds;

2.    payment of all outstanding amounts;

3.    execution of conveyance or release documents;

4.    delivery of possession;

5.    withdrawal or disposal of arbitration by consent

Opinion

On the facts presented, the legal representatives of the deceased landowner appear to have a sustainable claim to seek enforcement of the developer's contractual obligations, including payment of outstanding dues and return of the original title documents, if the developer has no continuing contractual right to retain them. Since arbitration has already commenced, these claims should ordinarily be pursued before the arbitral tribunal, along with any necessary application for interim protection.

If the developer is already enjoying possession of the flats allotted to his share while simultaneously withholding the original title deeds and failing to discharge his remaining obligations, the tribunal may examine whether such conduct amounts to breach of the Joint Development Agreement and grant appropriate contractual relief. The outcome will depend primarily on the specific terms of the JDA, the arbitration clause, and the evidence placed before the tribunal.

Regards

Prateek Tigala

(Advocate)