Memorendum of understanding
Sanjay Maitra
(Querist) 14 March 2013
This query is : Resolved
The mother who owns a land with a house has passed away 13 years ago living behind two sons and a daughter. The property division remained a problem due to the non cooperation of the younger son.The elder son and the daughter had filed a partition suit against the younger son and a decree from court in affect to that was received 5 years back. During the filing of the partition suit (10 years back) the elder brother and the daughter had signed a MOU with a promoter stating that the promoter shall develope the share of the Daughter and the elder brother at a particular agreed reveune sharing pattern and also shall bear the cost of the partition suit.
Now the promoter has borne the cost of the partition suit (approx 1.5 lacs)but the actual division of the property still remains problamatic due to the laiability sharing of the tenants and the disagrement of the part of the land each wants to inherit.
The viable option for an amicable settlement as proposed by all three (two sons and daughter is an outright sale of the property and sharing the revenue in equals.
The promoter was made aware of this verbally and was also told that his investment (1.5 lacs) with a mutually argeed compensation will be given to him from the proceeds of this sale.
But the promoter threatens a suit on ground of breach of contract and says that he will legally enforce the MOU even if it takes indefinite time for the partition and inheritence of the property to be affected.
The approx value of the property in regard to the elder brother and Daughter's share is approx 3.0 Crore.
The first query is that whether the promoter can enforce the MOU inspite of an written communication to him by the elder brother and sister in regard to cancellation of the MOU with effect from the date of paying back the promoter's investment + compensation.
The 2nd query is that what is the limiting compensation can the promoter ask (given his investment over seven years was only 1.5 lacs )
Please advice and oblige.
Regards
Sanjay
Pradeep MK
(Expert) 14 March 2013
It will depend upon the wordings and clauses in the MOU.
At one place you have mentioned it as an contract.
In case the MOU provides for cancellation of the MOU you may cancel the same by returning the money spent by the promoter.
The MOU between you and promoter is contingent upon the partition decree. Lot more depends upon the clauses of MOU
Raj Kumar Makkad
(Expert) 14 March 2013
None can reply definitely without going through the contents of the MOU signed between you and promoter. However, if a clause of cancellation is prevalent, it can be used accordingly otherwise it shall be better to convince promoter by offering some more share so that you all may get this deal executed otherwise he can definitely go to the court to get MOU executed which in turn shall demand more time in litigation.
ajay sethi
(Expert) 14 March 2013
agree with experts
Sanjay Maitra
(Querist) 01 April 2013
Thanks a lot for the advice.
