validity of sale agreement on rs. 100 stamp paper

I entered into an agreement to sell 4 acres of land to a person @ Rs. 30000 per acre (totalling Rs. 120000 for 4 acres). I received Rs. 25000 as advance. In agreement its mentioned that registration should be completed within six (6) months after paying the balance of Rs. 95000. Its been almost 1 year and 7 months now. Inspite of my repeated asking the purchaser didnt made balance paid within 6 months. Now after 1 year and 7 months he came to ask me for register the land and he is ready to pay the balance.  I totally disagreed and told that I wont sell my land. After few days he has sent Legal Notice stating that its me who has not turned up to register in his name and he is asking me to register the land in his name within 15 days.

I want to know the validity of the sale agreement made on Rs. 100 stamp paper and also let me know how i can defend my land.

So please advice me in this regard.

practicing advocate

the validity of the stamp paper is 3 years from the date of issuance of the stamp paper.  In your case within 3 years he has to file a suit for specific performance of contract.  He has already issued a notice to you so from the date of receipt of the notice by you he will get 3 years time to file the suit against you.


well rajeev....thanks a lot for early response. I want further clarification that....wat is the validity of the agreement ? as its mentioned that it must be registered within 6 months.

and wat bindings i have got as more than 1 year since the expiry of the first 6 months.

Please do reply rajeev...

Legal Manager

Mr. Harish


The agreement is valid in 100 Rs stamp paper and even if not made on stamp paper it is valid.  In fact even a oral agreement to sell is enforceable in law.


As regards your query of 6 months validity, I would say that there should be a negative covenant in your agreement that "if the purchaser does not complete the sale within 6 months, the agreement shall stand cancelled". If there is no negative covenant and it is merely stated that the sale should be completed within 6 months then the purchaser gets a valuable right to seek specific performance i.e., he possess the right to get the sale registered even after lapse of time.  IPlease look into your agreement for the presence of any negative covenant.  If there is no negative covenant as I said supra, the purchaser gets a right to claim the property. This issue is covered under the legal phenomenon "Time is the essence of contract" under specific relief act.

Total likes : 2 times


I differ with Mr. Rajeev S Vadrali's opinion partially:

Any legal action, original suit or arbitration, if there is such a clause in the agreement, has to be initiated within three years from the date of agreement. If a time for performance is stipulated say as 1/2/3... months/---days, then the limitation gets extended by such period.

(As for stamp paper, it is perpetually valid;in your case the issue is academic, as the same hasbeen utilised for drawing the agreement in question)

If there is no automatic cancellation of agreement clause after a specified period, in the agreement, then the agreement is still valid upto the date of aforesaid limitation.

If you have issued notice of revocation and cancellation of agreement, with intimation of forefeiture of advance received, if permissible under the agreement, or expressing readiness to refund the whole/part of the advance amount, if such a case is warranted as per the agreement, then the notice by the 'purchaser' is subsequent and loses its value. Lest the said notice is valid, in spiteof thefact that the prescribed period for conclusion is exceeded.

Since you are not interested to sell, as evident from your query, you need not take any legal action. Let there be a reply to the notice, denying the contentions of the 'purchaser' and also repudiating the agreement on grounds of effulux of time, as well as mentioning forfeiture/refund as stated above.

The person who files the suit has to pay the court fee and also prove his case.If there is any deficit in the stamp duty, (since most states have made the stamp duty on agreement to sell ad-valorem = according to value), then you can raise a preliminarey issue of admissibility of the document in evidence, impounding of the document etc, during trial.

With so many gaps in information, more specific guidance is not possible.


What are the negative consequences if  agreements are not executed on stamp paper.

Personal Assistant

Dear sir,

I have made an agreement for purchase of land during Oct.2004. On the Stamp paper sellers party, Husband wife and son all three signatures are on the stamp paper including one of witness and the purchasers signature. Seller agreed and a token of acceptance we paid Rs.10000/- as advance to complete the procedure. I have sent a notice through advocate during 2008 but no reply. Again we have sent legal notice through advocate and the seller approached to Lawer for refunding the money which advance was taken by them. But I as purchaser did not agree since I want to purchase the land and use for house purpose as shelter. Again I have sent legal notice in January, 2010 but so far there is no reply. The seller wants increase in the amount for which I am ready since rates are gone up.

I want to know that under Specific Performance can I file a suit against Seller?  What is the remedy?

I am ready for settlement for increasing the amount for purchase but I have loss and the seller is gaining? What should I do? Please encourage



any case laws that are available to prove that if a negative covenant is in the deed then it will stand automaticlly cancelled after the expiration of the said period..


Dear Mr. krishna, 

After reading your views in the case, I request you to kindly clarify as in my case there was a verbal agreement in the presence of 2 witnesses(broker and other person)  to purchase the tenanted premises and a token advance of Rs. 50000 was paid. Landlord asked to get paperss prepared. When I sent him the docum,ents for approval, he refused to sell the property. Even  denied having received the amount of Rs. 50000.  


Kindly advise, what is possible regards 


Dear Rajeev & Krishna,

As mentioned by chandrashakran, I have a case where purchaser has made an agreement for Sale with the seller towards purchase of 15L property my making advance of Rs. 3L in march 2011. the agrement states that the purcharer will by the property by paying the balance within 3months and execute sale deed. seller has waited till Dec 2011 and sent a Notice through advocate stating that we have waitined for 6months post 90days of agreement time, as you have not executed the sale deed till now we are cancelling the agreement made kindly collect your advance made to us. the notice was returned stating that not received. now seller is in need of money can he go ahead and sale the property with another 3rd party.




Your are not logged in . Please login to post replies

Click here to Login / Register  


  Search Forum



IPC Grand Course     |    x