Cancellation of sales agreement

Suraj Vishwakarma (Querist) 18 August 2015 This query is : Resolved
0n 1st August,2009 A Perpetual Lease Deed was executed and registered by the Mumbai Development Authority(MDA) in Favour of "Y",In clause 4(a) of the Deed It provides that "the possession of the Plot could not be transferred except the consent of the MDA, it is further provided that the consent for transfer shall not be given for a period of 10 years (i.e. upto 1st August,2019), unless in the opinion of the MDA exceptional circumstances existed for the grant of such consent.
In 2014 "Y" constructed a building over plot and ready to sell it to "X". The parties entered into Lease Deed. on next date party entered into the Agreement for sell and paid Rs.xx amount toward property and balance Rs.xxx was payable within one month of the notice of "Y" that the permission of the MDA had been secured. (In clause 3(B) of Agreement between "X" & "Y" if permission required were not obtain by "Y" form MDA within 12 months from the date of the Agreement to sell. the Agreement was terminable only at the option of the "X". and the amount paid toward the Agreement become adjustable by the "Y" against future rent for the said building in purchaser capacity.

on 2015 MDA declined to grant the permission for transfer of the property on the grounds that the 10 years period in the Perpetual Lease Deed had not expired.

on 2015, "Y" informed "X" about MDA rejection letter and sent a cheque of Rs.xx on the ground that the Agreement to sell stood terminated / frustrated on account of MDA rejection.

in response "X" inform that we both aware the fact and issues framed by the MDA, which "X" had decided not to exercise and consequently the Agreement to sell was very alive.

Consequently "X" filed a Suit for Specific performance of the Agreement to sell.

Know my Question is that.
1. whether "X" is entitled to specific performance of the Agreement to Sell.
( If Yes then why, & if No then Why )

2. whether Agreement to sell is a contingent contract and wether the same stood frustrated on account of rejection by the MDA.
( If Yes then why, & if No then Why )

3. Whether the terms of the Agreement to sell require "Y" to make a subsequent application despite MDA rejection in the first instance.
( If Yes then why, & if No then Why )

kindly mention the section according to which it is..

Thanking you.............

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