Nomani Parwez
Asked August 03, 2016

Issues in the Sale of land

  • 1 Answer
  • 111 Views

In 2013 we agreed with a party to sell our land (west bengal). We prepared one agreement and both the party signed. the party made an advance of Rs 1 lakh. But after that he remain quiet. Now it is 2016. He is not responding in any way. We somehow contacted him and told that you take back your advance money we will sell it to other party because now the price of land has increased in three years. He is just replying that I will not take my advance money back neither you can sell it to other. Sir, please advise. Is there anything that I can do to make this agreement cancel. or is there any kind of note that I will have to apply in court.

Answer 1

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SAURABH KUMAR

The Limitation Act provides for a limitation period i.e. the legally fixed time period to file litigations in courts for a suit of specific performance of agreement of sale of immoveable property. 

Article 54 of the Limitation Act provides a period of three years for filing the suit for specific performance- i.e. asking a party to perform an act as per a signed document, which commences from the date on which the ownership of the land was supposed to be transferred to the other party or when owing to varied reasons the transaction in the agreement did not take place, for example- a certain statutory formality might not have been completed due to which the agreement was stalled.

 

There could be a variation in the date of performance due to various reasons like delay in completion of legal formalities etc. 

 

The Supreme Court further has observed that a transfer of immovable property by way of sale can be effected only by a deed of conveyance. In the absence of a deed of conveyance (which must be duly stamped and registered as required by law), no right, title or interest in an immovable property can be transferred. The court further dealt with the importance of registering documents that record transactions of sale or transfer and the need for all states to take steps to curb malpractice, thereby reducing the circulation of unaccounted wealth (or 'black money') in society[1].

 

In this case, you have two options-

  • If the deed of conveyance has not been registered, then no such transfer of property has taken place. You can simply send the money back and accordingly no legal action lies from the side of either of the two parties.
  •  If deed of conveyance has been registered, then you must file a suit for specific performance within three years from the date fixed for the performance in the agreement. (and if no such date has been fixed, within three years from when the you had notice that performance has been refused by the opposite party), as per Article 54 of the Limitation Act.
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    Thus, I believe that legally, you are under no obligation to complete the agreement signed three years back by selling your property to the other party.

     

     

     

     

     

     

     

    [1] Suraj Lamp & Industries Pvt Ltd v State of Haryana, Narandas Karsondas v SA Kamtam and Rambhau Namdeo Gajre v Narayan Bapuji Dhotra

    Agree Comment 0 Agrees about 1 year ago

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