LIVE Course on Transfer Property Law | Price Hike in 4 days | Grab it now!
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Abhishek (Proprietor)     25 October 2011

Need help regarding sales agreement

In 2005, after repeated pestering by many property dealers, I decided to sell a plot to one of them. He paid 1 lakh earnest money and we signed a sales agreement, on a plain paper which had a revenue stamp. Due to change in some personal circumstances, I decided not to sell the plot and offered to return the advance.

 

The buyer(dealer) refused to take it back. I sent a Demand draft for the same through courier and he accepted the courier but never cashed it. He filed a performance suit in the court. The case is going on in the court till now.

 

I am ready to pay him double the amount but he was asking for half the present value of the property. Now some people (one of them is a retired judge) have told us that the court can rule in his favour, that is, forcing us to sell the plot and that too at 2005 prices (which is now almost 1/10th of the present value).

 

I'd like to know that as the agreement was unregistered, and I am ready to pay him twice the advance with interest, and also the fact that he accepted the Draft for the earnest amount, is there a chance that he can get the agreement enforced?

 

I have searched for similar topics in the forum but I got mixed responses. Some say unregistered agreement has no value while some say that it still can be enforced. Any help would be greatly appreciated. Thanks!



Learning

 3 Replies

adv. rajeev ( rajoo ) (practicing advocate)     25 October 2011

Before filing the suit for specific performance had he issued the notice to you?

Go thur., the recent supreme court decision on agreement of sale 2011 SAR.

Supreme court has said to refund the earnest money with interest.

You can contest the case on the ground that he has received the demand draft, it is left to him to enacsh it or not.  DD is just like cash.  So when he has accepted it, it is an end to the contract.

1 Like

Nadeem Qureshi (Advocate/ nadeemqureshi1@gmail.com)     25 October 2011

Dear abhisek

Mr. rajoo is right, fight the case

1 Like

P N V Krishnan (Advocate)     25 October 2011

Will you please give  more details  of the case  cited  by you.

Thanks

1 Like

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Start a New Discussion Unreplied Threads



Popular Discussion


view more »




Post a Suggestion for LCI Team
Post a Legal Query