Which has better title sale agreement or sale deed

Querist : Anonymous (Querist) 12 August 2011 This query is : Resolved
Hi Experts,

My relatives purchased a site in 1983 vide a registered sale agreement & an notarised affidavit by the sellers confirmed complete receipt of considerations & put them in possession of site.
The seller once again sold the same site in 2004 & that person moved court for declaration & possession.
The court did not consider Sec 53-A (T.P Act) & passed judgement against my relatives to deliver vacant possession despite being in possession since 1983.
We have moved high court which was pleased to grant stay over the lower court order.

Request experts to guide on:

1) Whether we have a good case to take forward?
2) Should we file any other case to defend our rights on property?
3) Is it advisable to go in for out of court settlement?

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prabhakar singh (Expert) 12 August 2011
GOOD OR BAD,A CASE IS ALREADY THERE HENCE NO NEED TO FILE AN OTHER CASE AS POSSESSION IS ALREADY PROTECTED BY STAY ORDER PASSED BY HIGH COURT which will give all answers binding on you both,you need not to be speculative now.However working on the 3rd option would not be a bad bet.

ajay sethi (Expert) 12 August 2011
i agree out of court settlement is best . your interests are protected by a stay order at present

Advocate. Arunagiri (Expert) 12 August 2011
The seller can breach the sale agreement and can sell the property to any body. By this the sale agreement can not be enforced. the agreement holder can demand only compensation and refund.

But if the sale deed is not executed, the agreement holder can seek specific performance to execute the document in his favour.

Querist : Anonymous (Querist) 12 August 2011
Dear Arun,

can we now file specific performance considering the time lapse & also the fact that a sale deed has since been executed by the seller in 2004.
Pls advise.

Advocate. Arunagiri (Expert) 12 August 2011
I have already told when the seller had executed a sale deed to a third party, you can not seek specific performance. You can seek only compensation for breach of contract.

M/s. Y-not legal services (Expert) 13 August 2011
No need for out of court settlement. In the year 1983 itself your relative got the property vide a registered sale deed.. Then mutation records also should be in your relative's name. Then how the earlier owner sold the property again? And since 1983 till today your relative only in possession, they may be having any tax receipt.. Then how its possible. Why your case loose before trial court?

M/s. Y-not legal services (Expert) 13 August 2011
The seller and subsequent encumberer may go to out of court settlement. Or else the subsequent encumberer can lodge a police complaint against the seller.

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