Deepak (SSE) 21 April 2010

Can legal action be taken in the basis of sale agreement?

Hi,

I had entered into a sale agreement for the purchase of a plot in kolkata.The sale agreement was done on a Rs 10 Non-Judicial stamp paper on 18th Jan 2010.I paid Rs80,000 as advance and the remaining is to be paid at the time of registration.
The plot is in a co-opertiave society hence I need to obtain approval for tranfer of ownership before I can go ahead with the registration.

As per the agreement the registration was suppose to happen within 3 months form the date of sale agreement but the time limit can extend in case if there is any delay from the co-operative side.

Now the owner has found any other buyer who is offering him more money and he does not want to sell the plot to me anymore.He is asking me to take back my advance and cancel the agreement wheras I want to buy that plot.

The owner has done some is citing reason that the co-operative is not going to approve my membership and hence I should cancel the agreement.He has done some settings with the secretary of the co-operative society because of which even the co-operative is not clearing my memebership application.The co-opertive is not even willing to give me in written that they are rejecting my membership request.

Now I would like to know what action can I take against the owner based on the sale agreement?

Also will the sale agreement on a Non judicial stamp paper hold good in case of any legal action?

Can I take any legal action or serve any legal notice to the co-opertive society.It has been more that a month since i submitted my membership application.

Do i need to register my sale agreement?If yes,then what is the procedure and cost involved.

Kindly suggest me how to proceed in this case.

Thanks

Deepak

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10 Replies

bhagwat patil (Property due diligence 9422773303) 21 April 2010

your agreement to sale is not registerd . not inforcible by law as per saledeed is concern. but ur money transaction contract is valid. u may restrain the seller for selling the flat to other person. but u cannot compel him to sale to u.it will take lot of years.

Deepak (SSE) 21 April 2010

Sir,
Thanks a lot for your advice.
Is it possible to send a legal notice to the Co-operative society for not processing any other request for the sale of that plot as my case is still pending with them.
I came to know that the owner is trying to submit another request for the transfer of ownership in favour of the other buyer.Hence I would like to stop him from doing so.

The co-opertiave is also favouring the owner and they are verbally saying that your request cannot be processed and you should take it back.

P.K.Haridasan (Advocate) 21 April 2010

You can very well send a notice demanding to register the plot in your name. You can stay the new transfer also . You have a right upon your advance money .

ANILKUMAR (ADVOCATE) 21 April 2010

Yes. Go through the agreement first and find out if there is any clause that requires you to perform any duty on the basis of the agreement as intending purchaser. If not, send a lawyer notice to the vendor that you are ready and willing to execute the sale deed as per the terms of the sale agreement already executed. If no favourable response, you can proceed with a suit for specific performance of the contract. Please do make an averment in the plaint that you were, you are and you will be ever ready and willing to perform your part of the contract and the other party is going to commit the breach and you are ready and willing to deposit the balance sale consideration in the court in the manner and time the court directs you to for the execution of the sale deed in your favour through court decree. Remember that specific performance is a discretionary relief and the facts, circumstances, and evidence in your case plays an important role.

Deepak (SSE) 21 April 2010

Hi,

The agreement does not have any clause wherein I am suppose to perform any duty.

Myself and the owner both together have submitted request for transfer of ownership/membership for the plot .But now he is not willing to execute the deal.He is trying to involve local goons into the matter.

Though he has not taken any advance from any other party as of now but his intentions of doing so is very much clear.

Also if there any possibilty that he might deny refunding my money incase I file any legal case against him? I have paid the advance money through Cheque.

Kanaksinh P.Boda (Educationist/Lawyer) 21 April 2010

I have a somewhat similar case, where I have filed complaint with the District Consumer Forum, making the seller and the CHS for deficiency in service. The matter is now on board for final hearing.

bhagwat patil (Property due diligence 9422773303) 22 April 2010

the saler is dutybound to get NOC from CHS otherwise hw hasto compensate u.

Deepak (SSE) 23 April 2010

Do I need to file case against the owner in civil court or in Consumer Court?

Also what action can i take against the Co-operative society as they are not cooperating at all and creating unnecessary trouble for me.

R.Ranganathan (Advocate) 23 April 2010

You have a fit case to file against the owner and the Co-op. society for specific relief claiming the property. There are several cases for this. You can either ask for the execution of the sale or else ask for compensation and damages against the owner. Further you can file a separate case against the society for non-registration of your membership and claim damages for negligence and dereliction of duty. Immediately approach the Civil Court/Co-op Tribunal for Injunction restraining the Society from transferring the membership to another person other than you.

You just check with an Attorney in Kolkatta whether there is Co-op Tribunal in Kolkatta having jurisdiction for these type of disputes such as transfer of membership, their rights and duties of the Co-op. Society.