Dear Sir/Madam,
I am heading a house building co-operative society registered under registrar of co-operative societies as PRESIDENT of the same in MYSORE, KARNATAKA.
On board approval and authorization I myself and our secretary entered into MEMORANDUM OF UNDERSTANDING FOR EMD and an AGREEMENT FOR SALE of of DC-CONVERTED PROPERTY in Mysore with a PRIVATE LIMITED COMPANY and both the documents are unregistered.
As we are handling public money and controlled by registrar of cooperative societies we ourselves are very much cautious on payment terms. So, we have issues cheques and asked them to present the same only after Satisfactory PUBLIC NOTICE in local NEWS PAPER and resolving the issues upto our satisfaction.
On publishing a PUBLIC NOTICE we have received an objection from the public and we have asked the company to resolve the same. But they have not attempted to resolve the same but they have just refuted the allegations filed.
We have even noticed physico-legal possession issues on our frequent visit to project site by the farmers who have lost their lands for the project on price issues. They have even prepared to take the matter to the concerned court apart from the physical threat they were posing.
So, our advocate has given here opinion and advised us to ask the company to resolve the objection and call for concerned farmers' meet and then ask them to deposit the cheques given. So, we have sent a letter saying the same along with scanned copy of our advocate's advise.
The company people were interested in only encashing the cheques rather than solving the issues raised by our advocate and our board.
We have even offered the company people about organising and sponsering the farmer's meet as our advocate has suggested us to do so. Even then they have not responded for the same.
There is a clause in our agreement saying that if the company cannot resolve the objection up to our satisfaction within 30 days then the agreements will be cancelled. But the other clauses like personal meeting to resolve issues, orbitration clause and other clauses like handing over peaceful possession of the project lands without any physico-legal litigations are all there in our agreement as usual.
But the company people were demanded us to they will be presenting the cheques, when, we have demanded for the resolving the objection and solving the physico-legal possession issues and then present the cheques, they have sent a letter by registered post stating that the agreements between us are terminated and they have returned the cancelled cheques.
Our question is the company people are the defaulters in the agreements. How come they terminate the agreement stating only one clause not giving importance to the other clauses like personal meeting and orbitration. They have not resolved any of the issues we and our advocate have raised. Specific performance clause does it apply for the same. We have not given any payment but we have signed agreements.
We are still would like to continue our agreement and help them to resolve the issues and interested to continue with the project. Our contention is as a defaulter they cannot announce the termination and close the agreements simply. Our members are really liked the place and are able to pay the price quoted by us. So to meet the financial norms as commited by the agreements is not at all a issue. Since we are from cooperative institution and handling public money we are worried about making the payments to them without resolving the issues.
So, please enlighten us regarding the same. Is it possible for us to file a suit against them under specific performance or do we have any other choice. As we are contending do our agreements are still in force? Please help us in this regards.
Thanking you,
With sincere regards,
A.L.SHIVA KUMAR.
