Registration of disputed flat

Admittedly, Honourable the High Court allowed the petition by a judgment in favour of the builder, which is appealed against before Honourable the Supreme Court. One does not know the fate of Special Leave to Appeal that is pending before Honourable the Supreme Court. But despite the fact that Honourable the High Court decided possitively in favour of the Builder, it cannot be said that "title is not disputed or there is no irregularity". It is a risk till it is finally decided by Honourable the Supreme court.

However, if you intend to get the sale deed registered, let them make a statement of fact that "property is free from litigation" as the builder contended. In case of any adverse action in future, you may have remedy against the Builder under the Ownership of Flats Act and under the Consumer Forum. You can well set up a plea that you are misled based on the statement of the builder. You can ask for the amount of consideration or the compensation, loss or damages. (Actually, this act on the part of the Builder not clearly providing the title is falling within the definition of "Deficiency in service". ) Consumer Forum would be a better platform for you in case of difficulty. 

The Building Completion certificate is provided by the Local authority i.e Municipality or the Municipal Corporation. Completion certificate is a must. 

Thank you Mr. Hemang for your response!!

Below are the first 2 clauses from the agreement document. 1^st clause says builder will indemnify if any false declaration is made. 2^nd clause says “property is litigation free” which I know is incorrect. So, does it ensure that I’ll be compensated if Honorable Supreme Court’s verdict goes against the builder?

1.       In consideration of an amount of ------------------------------------------ only has been paid by the purchaser to the vendor, the receipt of which the vendor has acknowledged and hereby admits and the vendor hereby grants, transfers, conveys, assigns and assures unto the purchaser the proportionate impartible undivided share in the land in question with building as set out in the schedule given below together with all rights, privileges, easements, appendages and appurtenances attached thereto. Resultantly the purchaser shall enjoy and hold the said proportionate impartible and undivided share in the land with the building absolutely and for ever and the vendor doth hereby covenant that not withstanding any act, deed or thing done by him, he has a clear and marketable title over the land in question to grant and convey the proportionate interest in the land in favour of the purchaser, who shall at all times, here-after peacefully and quietly hold, possess and enjoy the said proportionate impartible undivided interest in the land with the building as indefeasible owner thereof without any let, interruption , claim or demand whatsoever from or by the vendor or any person claiming any title or amount to the interest of the vendor. The vendor further states that he shall at all times here-after at the request and cost of the purchaser executed or cause to be executed any further acts, deeds, conveyances, assurances for assuring the said proportionate impartible undivided interest in the land with the building as detailed and delineated in the schedule set out below in favour of the purchaser and the vendor, his heirs, successors shall at all times here-after indemnify and keep indemnified the purchaser against any loss, damage etc., if any, suffered by the purchaser by reason of any defect or deficiency in title of the vendor or any breach of the declaration here-in-obtained.

2.       The vendor doth hereby declares that the property is not the subject matter of any suit or litigation and the same has not been attached by any court or authority in any proceeding. The land in question has not been notified under any notification issued under the Land Acquisition Act and there is also no scheme in contemplation or proposal for acquisition of the land for any purpose whatsoever.

You can go for sale deed by mentioning that the property is free from litigations.  

Simultaneously, you insist the builder to enter into MOU with you stating as follows:

"That for the time being a clause is mentioned in the sale deed that "it is free from litigation" infact, the dispute is pending in the Supreme Court and the Builder will indemnify any such loss, upon hte result of the supreme court order or in any other way"

This will be useful in future when you go for filing consumer case or any civil case against the builder. 

Thanks Mr. Ravinder P!!!

At the time of booking, we had an agreement document, bank took that document while disbursing the loan.  Following clause was mentioned in agreement document -

“It would be the sole responsibility of the builder/developer to clear all the litigations arising as and when out of the said property.”

Can’t that be considered as MOU?

yes it is sufficient