Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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Raghavendrahari.N (Self Business)     12 June 2022

Validity of unregistered agreement

Can someone help with validity of unregistered agreement. Asked buyer to pay within 3 months but he failed to pay. Total sale consideration for agriculture land is 8.5 lacs. Only 50000/ cash paid. After 18 months of unregistered agreement date, buyer filed case in court seeking registration of my agricultural land. Does it valid. Please provide with good citations. 



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 3 Replies

Sravika Reddy Kohir   13 June 2022

Hello Raghavendrahari.N, I acknowledge your question. The buyer here is filing a suit of Specific Performance and it is duly valid for him to do so. In this the buyer has proved his readiness and willingness through paying the token money as consideration, he shall duly pay the rest consideration therein after the registration of the agricultural land.

And when coming to the point that he not paying the additional consideration you can even prove that the above act would lead to his fault in showing the readiness and willingness in performance of the act.

 The question as to whether he can seek for registration through a suit filed is valid according to the judgement held in SMS Teas Estates Pvt. Ltd. v, Chandmari Tea Co Pvt. Ltd.

The judgement held that the non-registration of the lease deed did not affect the invocation of an arbitration agreement and the validity of an unregistered document shall last till 3 years.

I hope that I have answered your query, if you have any further doubt do drop here.

Have a good day.

Raghavendrahari.N (Self Business)     14 June 2022

 

 

https://www.kanoonirai.com/unregistered-agreement-sale/

 

According to the provisions of Section 54, the agreement to sale does not confer any right to the parties. It is not a valid documents of ownership or title of the land. Since, buyer does not pay consideration to the seller hence, agreement to sale does not creates any right in the favour of buyer. Therefore, buyer cannot claim any right in property barely on the agreement to sale.

Signing of agreement to sale does not mean that property has transferred to the buyer. It is an executable contract and its execution depends upon fulfilment of some other conditions such as payment of consideration etc. It contains terms and conditions of the proposed sale thus parties are abide by those conditions. The final sale deed will execute on those terms and conditions.

Saquib Siddiqui   23 June 2022

Sir, If the buyer has moved the court after the expiry of the term of the agreement to sell then no cause of action would arise in his favor.

Have you returned the earnest money received from the buyer?

Furthermore what is more important is the state in which this agreement was executed as some state have made it mandatory to register the agreement to sell for it to have validity before the court.


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