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Mahesh kumar Orchu (student)     13 October 2023

Property owned by company and agreement of sale made by another person is it valid.

Greeting for the day.

Briefing of the case.

1.some Extent of Land owned by Real Estate Company. 

2.one of managing director of the company's made an Agreement of Sale in Last year. due to some financial Dispute among the Vendees, they approached the M.D urged to made a new Agreement of Sale due to Change in Vendees. M.D accepted and made 2nd Agreement of Sale with New changes in Total Sale consideration, Vendees And time period for Execution of Agreement of Sale. 

3. in the Specified Time period vendees not approached to M.D, now they filed suit for specific Performance.

4. Remaining partners and another M.D not showing Interests to Contest the Case, as Company name is not Mentioned in Agreement of Sale.

5. property owned by company and Agreement of Sale made by M.D (individual capacity) is it valid.

here i'm Behalf of 1st M.D kindly give suggestions.

 



Learning

 2 Replies

Dr. J C Vashista (Advocate and Legal Consultant)     13 October 2023

The MD is stated to have accepted agreement to sell and signed the document on behalf of company as "Director" of the company which cannot be termed as "individual" vendee.

Presumably the MD must have been authorised by all stakeholders of the company to execute the agreement for and on behalf of company, consequently it is binding on all the "Directors" of vendee company.

It is better to consult a local prudent lawyer with relevant records for apprecition of facts / documents, professional advise and necessary proceeding

P. Venu (Advocate)     13 October 2023

No definite suggestion is possible unless the documents are seen and issues discussed.


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