Adarsh Malhotra (Director) 27 March 2012

Sale deed without consideration

I had executed a Sle Deed of my plot in 2008 & handed over possession, in favour of a Purchaser. Purchaser had issued me the Cheques of total sale consideration, mentioned in the Sale deed. As per condition mentioned in the sale deed, the cheques shall not be presented for realisation, till I (Seller) will obtain building permission form Municipal Corporation Bhopal over the said plot. Inspite of best efforts from my side I could not get building permission on the said plot from the concerned authorities. Now, I want to get back my plot so please inform me the procedure for cancelling the sale deed. Purchaser is not willing for the same. Purchaser had only invested the amount of Stamp duty & registration expenses of the Sale Deed. Pl also inform whether I can get back my plot because today I do not want the amount mentioned in the sale deed because of rsie in market rates.

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2 Replies

Kuldeep Gauniyal (Sr Manager - Legal) 27 March 2012

Contract without consideration is VOID. It could a gift deed.

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com)) 27 March 2012

Dear Mr.Malhotra,

Since you are not able to get the permission and it is an essential condition of the contract, and without any fault of yours, you can rescind the contract as the same is frustrated/became impossible to perform. If that is how it stands, you can claim rescission on that ground and get the Sale Deed rescinded. You would have to return any benefits recieved. However rescission on mere ground that value of property has increased manifold would not entitle you to wriggle out of the contract. Consult a local Lawyer !