Regarding agreement-to-sell
Pawan Kumar
(Querist) 10 February 2012
This query is : Resolved
Dear Experts,
An agreement-to-sell for an immovable property was entered into. As a part performance, the possession was handed over to the transferee and 90% of the settled amount has been received by him. The agreement did not contain any clause for the recession of the agreement by the transferor. It did not even contain any time limit for the full payment of the property to the transferor by the transferee; and the transferee is not paying the rest 10%.
NOW THE QUESTIONS ARE-
1) Can the Agreement-to-sell be rescinded by the transferor on non-payment of the settled amount;
2) If yes, since the agreement does not stipulate any time, how long does the transferor has to wait? Let me inform u people that a period of more than a year has already been elapsed by the date of the agreement..
3) I am confused with Section 53A of TP Act..is it harmful for the transferor at this stage.......does it really debar the transferor from rescinding the agreement?
adv. rajeev ( rajoo )
(Expert) 10 February 2012
When there is no time stipulation is not mentioned then limitation starts from the date of execution. Within 3 years from the date of execution suit for specific performance of contract had to be filed.
Deepak Nair
(Expert) 10 February 2012
Yes. As per the limitation Act, the limitation period will be 3 years if no time period is stipulated in teh agreement.
ajay sethi
(Expert) 10 February 2012
these are the pitfalls faced when you dont engage lawyers for drafting . since purchaser has paid 90%of amount he will pay the balance 10%too . the buyer must be aware that since no time limit has been specified he can pay balance 10%within 3 years
Pawan Kumar
(Querist) 11 February 2012
Dear Sir, I know that these are the pitfalls but the deed was drafted by the transferee through his lawyer and the same was signed on good faith and belief. Any how, the problem is now staring into the eyes and the subtle question that is still to be answered is - can the agreement be rescinded by the transferror at this stage in the light of section 53A TP Act and the parties be asked to return to each other the benefits they have received under the agreement?
With fervent hope of reply,
V R SHROFF
(Expert) 11 February 2012
Only 10% is balance, Issue demand notice, claiming a verbal promise to pay bal amt in six months.
see what he reply, or you have to wait for 3 years to get it.
file civil suit few days before 3 years of execution.
ajay sethi
(Expert) 11 February 2012
you have already parted with posession of property on receipt of 90%of amount . since no time limit is specified purchaser is having a laugh at your expense . issue him a legal notice for balance 10%. wait for his reply
