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gopi (self)     12 March 2010

sale agreement


ABC purchased Property  in 1948. ABC expired leaving wife(CDE) and three sons(LMN, OPQ, RST),........ Two years back RST took his share in cash by orally partition (2008) and by making memorandum of Oral EVidence family partition deed( not registered) in 2010 in written.


Tough RST does not have any rights to sell the land,....RST made sale of agreement.with XYZ.(not registered)

Now what stand should XYZ to taken. This case is from AP


 3 Replies

G.L.V.Ramana Murthy (Advocate)     12 March 2010

in this case son relinquished share by taking money with out registering the document but it is evident by unregistered partition deed . The same person alienated the property to others under an agreement of sale. The purchaser can not seek specific performance of contract as the vendor has not right in the property y. the purchaser can seek for refund of money and secondly he can file a criminal complaint against the vendor for the offences of cheating etc, available under Indian penal code. The unregistered partition is also not prohibited which evidences the past transaction.

Ramana Murthy

k.chandrasekharan (advocate)     12 March 2010


The seller is a Hindu. The deceased owner died intestate. There are no daughters.

The property's character whether of a joint Hindu family,or self-acquired, is not clear. Assumed as self-acquired.

Oral partition is valid under Hindu law. Does not need registration. Also agreement of sale does not need registration. However the agreement should have been adequately stamped as per local stamp act, lest penalty shall entail.

The agreement in question, is stated to have been executed by the same person who had relinquished his rights under oral partition.How and when this knowledge of relinquishment came to thre knowledge of the intending purchaser is a relevant factor in evidence.

Action suggested:

1.Issue notice to RST, the person holding out as 'owner' under the agreement, for specific performance alongwith co-owners if any,  and furnishing the necessary collateral documents like power of attorney from the co-owners, if any or patta/khata transfer, latest tax paid return and receipt. Notice may mention alternative remedy of refund with penalty/interest, as per the penalty clause if any in the agreement.

2. Knowledge of existence of co-owners or defect in the title of the noticee (which obviously have come to light after the agreement is executed) may be mentioned in the notice, depending on the circumstances.

3. When no reply/inadequate/unsatisfactory reply is received within the period mentioned in the notice, file suit under specific relief act, with alternative remedies or money-recovery remedy only, depending upon the purchaser's wish as well as capacity to stake the court fee.

4.If arbitration clause is there in the agreement, after the notice period, approach the proper court, under section 9 of the A & C Act, for interim relief of stay on alienation or creation of third party interests on the property;

5.After filing Section 9 application,take steps to refer the dis[pute to the named arbitrator if any or initiate Section 11(6) proceedings in High Court, for appointment of an arbitrator.

suresh arumugam (advocate)     13 March 2010

xyz can only sue rst for recovery of his money and he can also initiate criminal proceeding for cheating against rst.

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