NewDefendant (None) 29 December 2009

Performance under Sale Agreement

Hello,

I have suit filed against me for specific performance.

As per Agreement, I was supposed to get NOC. Plaintiff agrees I sent all documents necessary for NOC immediately. Plaintiiff was supposed to pay 60 days after NOC receipt. NOC was not given due to plaintiff's fault.

The Sale Agreement clearly states:

The transferor will sign all documents for transfer only AFTER the balance payment is received by the transferor from the transferee.

All original documents and vacant possession will be given on receipt of balance payment.

No where in the the agreement does it state that we have to sign a sale deed.

Since Plaintiff did not send me balance payment (he only kept saying he is ready to execute sale deed and is ready with payment) what grounds does he have to sue me for specific performance?

Thank you

Ananya

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4 Replies

R.R. KRISHNAA (Legal Manager) 29 December 2009

Your case stands on the ground of time i.e., giving the balance payment. If there is a negative covenant that "if payment is not made in stipulated time (60 days as in your case) the buyer will loose his rights", then you are protected. Otherwise the buyer has good case to win. It all depends on the terms of the agreement. If the buyer pleads specifically before the court and in his pleading that he is willing to perform the contract and has deposited money then he will definitely win the case. The buyer can also give cogent and good reason for the delay in obtaining NOC which the court will definitely accept. Mere delay in obtaining NOC cannot alone form a ground for refusal of specific performance if good ground is shown for delay. But still everything depends on the terms of the agreement. If you could post the sale agreement then the experts can reply more clearly and specifically.

Ram K (Manager) 29 December 2009

i will agree terms specified by Krishna, for smoothly close the issue you may ask the buyer to give a demand draft for the balance amount instead of cash transaction this will become better and secure to both the parties. on receipt/production of the DD you may sign the sale deed in favour of the buyer.

NewDefendant (None) 29 December 2009

Thanks you all.

The agreement was signed in 2002.

Payment was to be made 60 days after NOC. If within this time he did not pay then I could forfeit the earnet money of Rs 1 lakh.

NOC was not given because buyer refused to comply with bye-laws of the society for over a year.

Even before getting NOC he filed suit to force me to sign Sale Deed. The agreement does not specify I have to sign any document until I receive balance payment.

How can he file suit for specific performance when I have performed my obligation of applying for NOC, but could not get NOC because of him? And now how can he force me to sell him my) house at 2002 price (price has more than doubled in 7 years

Also my obligation started after he made payment. Since he did not make payment how can he sue for specific performance? It is not as if I refused the payment he sent?