vinod bansal (lawyer) 14 September 2010

U turn By executor of sale agreement

R/Experts
A sale agreement was executed in between my client and a person namely Ramlal for a sale consideration of Rs. 10 lac and an amount of Rs. 5 lac was paid at the time of agreement as earnest money.Possession was not delievered to my client(Vendee)It was settled in between the parties that sale deed will be executed on 01/07/2011.Usual terms were also mentioned in agreement and it was witnessed by two witnesses and it was attested and registerd by Notary public.Now it has confirmed to me that Vendor Ramlal has again executed a sale agreement of same property with someone,thus he has cheated my client,beside this it was mentioned in our sale agreement that property in question is free from all debts/loan/surcharges but now my client have come to know that a loan of bank amounting Rs. 4 lac is outstanding against vendor Ramlal against this property,It is also misrepresentation by vendor,Now what is remady available to my client civil as well as criminal.Can i file a suit for specific preformance at this stage or it is pre mature bcoz date for sale deed is far away as that is fixed for 01/07/2011.Can i also file a complaint us 420 IPC.What step/legal action i have to initiate for my client.Can i file any suit for seeking injunction and for direction to Registerar and vendor not to registered any sale deed in favour of anybody except my client. Kindly advice. Thanx

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2 Replies

niranjan (civil practice) 14 September 2010

In my opinion if you have got proof that vendor has entered into another agreement,it amounts to denial and you should file suit for specific performance joining the second purchaser as party and ask for injunction.If you will file suit for declaration and injunction only,in that case you should obtain permission from the court for filing the suit without relief of specific performance to save you from the bar of O.2,rule 2.

Raj Kumar Makkad (Adv P & H High Court Chandigarh) 14 September 2010

At this stage when the date of registration fo the sale-deed is far away and you have discovered some frauds played by vendor with your cleint viz. vendee, you cannot become a mute sepctator waiting for the last date of registration of sale-deed and providing vendor an opportunity to sale-off his property uder sale and moreover to make him similar frauds with some other innocent byers.

You should not only file a criminal case of fraud against such vender but also seek injunction against him to sale the agreed property in favour of any other person. You should also bring the fact of further agreement to the bank authorities wherein it is already mortgaged so that it may provide you balance of amount alfter taking its forcible possession and further auction, if such stage arises at any later stage.