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Raghavendrahari.N (Self Business)     08 January 2020

Unregistered sale agreement validity in view court of law

Hi All,

Please clarify below scenario.

Sale Agreement made on total value of 750000/ ( Seven Lac fifty thousands ) and 50000/- ( only Fifty thousand ) paid as advance and mentioned the same in agreement.Within three months from the date of agreement remaining should be paid. But failed to pay remaining balance even after 6 months. Seller clearly mentioned in agreement that the sale agreement valid only three months.After 20 months from date of agreement Buyer filed civil suit asking for registration of property. Does it valid in eye of Indian Law.



 12 Replies

rajuchowdappa   08 January 2020

Mr. Raghavendra chari,

The unregistered agreement in the eye of law not valid and if you file case, then you will waste your money and time.

So, better lookout for another purchaser on your property.

If you need any assitance you can reply or send message in pm box

Raghavendrahari.N (Self Business)     08 January 2020

Thank you Sir. Now in above matter I am the seller not buyer. Now civil court admitted the case and it is going on for last two years. Please help with speedy disposal of case so that I can sell it to others in future.Should I approach to higher court asking for disposal.

Real Soul.... (LEGAL)     09 January 2020

If there is no stay order or direction from the court that until the disposal of case you are barred to sell the land ,then you proceed to sell the land.

However if the agreement is unregistered that is not enforceble though can be used as evidance for strcuk of deal, and that case too the buyer fails as he was suppoused to pay within three months the full amoun tof sale.

Now you need to speed up the trail and for that you have to bear the the patience.High court won't interfare in the trail at this stage.

Just if there is any stay order make that vacated and sell the proerty.

Adv.Balachander Reddy (High Court Advocate IPR Attorney and RTI Activist)     09 January 2020

Unregistered agreement of sale is absolutely valid and  admissible under the law.

The buyer has legal right to enforce the said agreement by way of filing of civil suit of specific performance along with Injunction.

Thank you

Raghavendrahari.N (Self Business)     09 January 2020

Hi BalachandarReddy Sir,

 

As per 

Section 17 (1A) of the Registration Act, 1908 came into force with effect from 24.09.2001 and it is prospective in operation. According to the purport of Section 17 (1A) of the Registration Act, 1908, an unregistered agreement to sell cannot be made the basis for preferring a suit for part performance of the contract.

Reference Links for your information.

https://tilakmarg.com/opinion/doctrine-of-part-performance-specific-performance-of-contract-agreement-to-sell-sale-deed-and-the-formality-of-registration/

https://lawmirror.com/search/search.php?q=unregistered%20document%20not%20admissible%20in%20evidence&sel=headnote&page=1

https://realty.economictimes.indiatimes.com/realty-check/fate-of-executed-unregistered-agreements-for-sale-for-on-going-projects-under-rera/2453

https://tilakmarg.com/forum/topic/unregistered-sale-agreement/

 

P. Venu (Advocate)     09 January 2020

In the given situation, it is unlikely that the Court will decree specific perforamnce. However, you need to return the money advanced less the loss or damage you have sustained. It is better to work out an amicable settlement either through mediation or the "adalat".

Raghavendrahari.N (Self Business)     09 January 2020

Thank you Venu Sir. Will return 50000 once court dispose the case through online digital mode, check or DD same will submit in court.

Raghavendrahari.N (Self Business)     09 January 2020

Thank you Venu Sir. Will return 50000 once court dispose the case through online digital mode, check or DD same will submit in court.

Raghavendrahari.N (Self Business)     09 January 2020

Thank you Venu Sir. Will return 50000 once court dispose the case through online digital mode, check or DD same will submit in court.

Dr J C Vashista (Lawyer)     10 January 2020

As vendor you need not refund the amount of Rs. 50 K if you have validly and properly revoked the agreement to sell..

The suit is stated to have been instituted and being contested for the last 2 years, presumably through some "prudent" lawyer, who has been engaged /paid for the purpose and s/he is an able, competent and intelligent enough to guide what is his/her opinion / advise, if you are vendor ???

Why do you need second opiinion and obligation of experts on this platform except the fact it is available FREE OF COST, if it is a true story? 

Raghavendrahari.N (Self Business)     10 January 2020

Honourable Dr JC Vasishta Sir,

Namaste. Thank you for your reply. It is unfortunate that courts in rural India still not following our constitution and Law. They simply accept whoever files the case. In rural ,lower courts Judges are controlled by local Lawyers. Lot of cases are pending because of Lawyers.I pray to all lawyers to bring certain guidenlines while filing a suit in any court.

TGK REDDI   10 January 2020

I agree with Shri Balachander Reddy that an unregistered Sale Agreement is valid.    Even an unstamped Sale Agreement is valid.     The Court requires that some penalty is to be paid.

Nevertheless The Sale Agreement in this case is invalid on account of non payment of the remainder.


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