Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Job Chithalan (Retired Engineer)     03 July 2017

Paid full amount but did not sign lease agreement

After a trial stay at Melur Meadows Retirement, near Mettupalayam, I became interested in leasing an unfurnished flat for three years.

Directors were in financial difficulties. For future good will, I paid them 15.75 Lacs, full amount for the lease.  That was in January 2016
However, after studying the lease, and due to difficulties in furnishing the flat,  I decided not to proceed.

Directors agreed to refund. But already broke two promises to refund. Now they are giving me all sorts of excuses.
One of reasons was that they are in a dispute with DTCP (Department of Town and Country Planning).
So can't sell any of the 25 remaining flats; They can only lease the flats but have not found anyone else.

I requested them to pay me a small interest on the 15.75 lacs, till they are able to pay.
But they have not agreed. I am 71 years old and can not afford to lose 15.75 lacs.

Where do I stand in Law?  Since this is about lease on a property (real estate), is it mandatory to have a written agreement in place?

I tried for many months. Was patient and understanding.  But now suspect that they have no intention to retun my money.

Please advice.  Thank you

Job Chithalan

job_cf@yahoo.co.uk



Learning

 4 Replies

Arjun Kohli   04 July 2017

A written agreement is always better to have to support one's case.

If you have the receipt of the payment of such amount you made to them, though, it would be really helpful to your case.

I believe you can file for Debt recovery in the appropriate forum, where they will have to pay you the debts either from their own funds or attachment of their property. (as per the decision of the forum)

However, if you don't have anything in written whatsoever, I'd suggest you to hire a capable legal counsel who can appropriately guide you through the process.

Job Chithalan (Retired Engineer)     05 July 2017

Dear Mr. Arjun Kohli

Thank you for your reply.  
I do have written receipt for payments made to Alternative Lifestyle Private Limited (Melur Meadows).
In addition, I have records of NEFT payments made through the bank.

In an email, a director had also promised that they will refund the money.
Now they are going back on that promise.
The directors are referring to clauses, such as 'lock-in period' in the written lease agreement that I DID NOT sign.
Their argument is, "Why did you pay for the lease?"

Can they rely on an agreement that was NEVER SIGNED?
Are they not liable to refund the amount that I paid, way back in January 2016?

Since this is about lease on a property (real estate), is it not mandatory to have a written agreement in place?
Where do I stand in Law?

I do not live in Coimbatore or in Tamil Nadu.
Can a lawyer take legal action for me in my absence?
How do I find a specialist lawyer?

Thank you

Job Chithalan
job_cf@yahoo.co.uk

Arjun Kohli   06 July 2017

First of all, in my opinion, the agreement not being signed will obviously lack the force it would have acquired if it was signed. However, it can still be used if the material terms and conditions have been acted upon by both parties in consistency with the said agreement. I believe even you might have to use the said agreement to establish the relationship between you and the company you're dealing with.

However, in my understanding, despite whatsoever arguments they put to you, if you wer every clear and straightforward in your terms with them while making the payments which form the subject matter of the dispute here, and the terms regarding the same were clear regarding the usage, repayment etc., and they have promised you in written (emails) as well, I think it is possible to get your money recovered. 

As to the representation, you can definitely hire a capable legal counsel who can represent you in the concerned matter with the execution of necessary documents like Vakalatnama, Sp PoA, etc. (depending upon the situational requirements)

Job Chithalan (Retired Engineer)     07 July 2017

Sir,

When I pointed out that I did not sign the agreement, they argued, "why did you pay the amount?".
I replied, "I had the intention, but for various reasons, I had to change my mind"
Does, myself having to change my mind, "form the subject matter of the dispute here"?
Is their agrument, legally valid agrument for not refunding my money?

Please give a direct answer to my original question,
"Since this is about lease on a property (real estate), is it not mandatory to have a written agreement in place?"

About your comment, "you might have to use the said agreement to establish the relationship between you and the company you're dealing with."
I have signed receipt for the 15.75 lacs, that I paid.
Would this not be much more valid than an UNSIGNED lease agreement?

Thank you

PS.

I would be most grateful if other lawyers could please weigh in with advice.

I am not in Coimbatore or in India, right now.
How can I find a lawyer in Coimbatore who can act for me?

Thank you in anticipation.

 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  



Post a Suggestion for LCI Team
Post a Legal Query