Is an agreement for sale not signed by purchaser & witnesses enforceable?
K.K.Ganguly
(Querist) 11 July 2012
This query is : Resolved
One of my clients had taken loan of Rs.5,70,000/- from one cheat for construction of flats. That person also had lured my client stating that he will loan him further amount and as a security he made my client signing one agreement for sale of one flat to him. He also lured him by presenting one of his friends saying that he stays at Siliguri and will provide further loan of Rs.9,00,000/- for which he has to go to Siliguri to collect money from his Bank. After giving such assurance, the cheat had taken two nos. money receipts of Rs.4,50,000/- each and another agreement for sale of flat in his name & told that he will bring the cash from Siliguri shortly. The said loan never came but after 2 years 11 months, the Cheat has filed a complaint before the Consumer Forum demanding possession of the flat & registration thereof referring the agreement of sale my client had signed for getting Rs.9,00,000/- loan as security, which never came and also used the money receipts which were issued for this purpose. Now, the point is that, from the copy of the agreement of sale filed, I find that it has not been signed by the Purchaser i.e. the cheat & there is no signature of any Witness.
My question is:
Can I claim that the so called agreement for sale was not executed at all since it was not signed by the purchaser and any witness? Some of my friends say that signature of purchaser in agreement for sale is not necessary for making it enforceable. Any citation to this effect?
Would the Experts kindly opine on the above?
ajay sethi
(Expert) 11 July 2012
Mr Gnaguly you have an interesting isssue as to whether in absence of signature by purchaser agreemetwould be valid .
In S. M. Gopal Chetty vs. Raman [AIR 1998 Madras 169], a learned Single Judge held that where the agreement of sale was not signed by the purchaser, but only by the vendor, it cannot be said that there was a contract between the vendor and the purchaser; and as there was no contract, the question of specific performance of an agreement signed only by the vendor did not arise. On the other hand, in Md. Mohar Ali vs. Md. Mamud Ali [AIR 1998 Gauhati 92], a learned Single Judge held that an agreement of sale was an unilateral contract (under which the vendor agreed to sell the immovable property to the purchaser in accordance with the terms contained in the said agreement), that such an agreement for sale did not require the signatures of both parties, and that therefore an agreement for sale signed only by the vendor was enforceable by the purchaser.
ajay sethi
(Expert) 11 July 2012
Supreme Court of India
Alka Bose vs Parmatma Devi & Ors. on 17 December, 2008
Author: P Sathasivam
Bench: R.V. Raveendran, P. Sathasivam
SUPREME COURT OF INDIA
RECORD OF PROCEEDINGS
CIVIL APPEAL NO(s). 6197 OF 2000
ALKA BOSE Appellant (s)
VERSUS
PARMATMA DEVI & ORS. Respondent(s) Date: 17/12/2008 This Appeal was called on for judgment today. For Appellant(s) Mr. Ranjan Mukherjee,Adv.
7)If so, a written agreement signed by one of the parties, if it evidences such an oral agreement will also be valid. In any agreement of sale, the terms are always negotiated and thereafter reduced in the form of an agreement of sale and signed by both parties or the vendor alone (unless it is by a series of offers and counter-offers by letters or other modes of recognized communication). In India, an agreement of sale signed by the vendor alone and delivered to the purchaser, and accepted by the purchaser, has always been considered to be a valid contract.
