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Raja Shekar Reddy S. (Advocate)     13 April 2010

agreement of sale

A was entered into an agreement of sale with B,C,D &E in the year 1988 which is unregistered, but notarised. A has paid entire sale consideration but possession was not delivered as per agreement, and time essence is not there in the agreement. from 1988  no dispute was there but very recently  above E along with LR's of B C &D (B C &D were died)  executed an Regd.  AGPA to some third parties, in turn they executed regd. sale deed to some others. whether A  can execute any gift deed to his blood relation, so that agreement of sale will become as link document to his donees Or else A has to go for specific performance against E & LR's of B C&D. what is the relief for A.  



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 5 Replies

R.R. KRISHNAA (Legal Manager)     13 April 2010

An agreement of sale does not confer a full title on the holder.  Only a sale deed does a complete conveyance of the rights in the property.   E and legal heirs of B,C,D have no right to create a GPA and perform sale of the property because the agreement of sale in their favour obtained during 1988 is not a complete conveyance in itself.  Since time is not the essence of contract does not imply that E and the legal heirs of B C and D get a right automatically over the property.  Since there is no sale deed in their favour, E or the legal heirs of B,C,D have no right to transfer the property.  A can file a suit for cancellation of the GPA and the sale deed executed by E and others in favour of third parties.

Darshan Panchal (Advocate)     13 April 2010

The limitation period of Agreement for sale is 3 (three years) which applies to any simple document also in absence of period of Agreement. In your case its been 22 long years. Although u paid consideration under the Agreement, Court won't recognise or take into consideration the Agreement for Sale for want of registration which has been now made compulsory. Gift can not be made since A never became the owner of the property and possession was not parted with under the Agreement. You may approach the court and court will give decision in the light of surrounding circumstances. There are conflicting judgements of highcourts in this aspect. A should have remained vigilant.

Raja Shekar Reddy S. (Advocate)     13 April 2010

krishna first of all i thank u but  sir, here A is the agreement holder and B C & D are the vendors of the property

darshan sir thanq very much for ur advise, whether A can move for specific performance or not? 

R.R. KRISHNAA (Legal Manager)     13 April 2010

Delay denies justice.    A cannot seek specific performance as he has delayed by nearly 22 years in seeking relief. 

Darshan Panchal (Advocate)     13 April 2010

I agree with krishna. In the given case long long time has elasped. Courts do not encourage or entertain such time barred pleas for specific performance. It will attract hundred of thousand such pleas. The simple question court will ask that where were you all these years and what did you do?  However, you can take a chance if you wish.


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