Unregistered agreement for purchase of property by pvt ltd

Dear Friend,

First of all there is no legal sanctity of the payment of 3 Corores in cash, if the person at the receiving end denies and there is no coroborated evidence to establish it. Further, it is also though not a illegal activity in money transaction by way of cash transaction but against the RBI advisory that any payment of more then Rs 20 Thousands shall have to be not in cash but by way of the intra bank transactions only.

Now Come to the unregistered Agreement issue, any agreement whether it is a registered one or unregistered is having the same lawful enforcement in the eyes of the court. Though there is some category in the Indian Registration Act 1908 that makes compulsory for certain agreements which has to be registered on the either some legal ground or on the pecuniary grounds. In its Explanation it states under Sec 17 that  "A document purporting or operating to effect a contract for the sale of immovable property shall not be deemed to require or ever to have required registration by reason only of the fact that such document contains a recital of the payment of any earnest money or of the whole or any part of the purchase money".

Advised, always take assistance from an experienced and well educated Advocate of the field. You can see my credentials on site for my appraisal.

Click "LIKE" in appreciation of the above answer.

Anand Bali, Adv.
(B.Com., M.A., LL.B., M.B.A.)

Supreme Court Of India
Delhi High Court & Other
District, Tribunal & Consumer Courts.
Civil, Criminal, Property, Recovery, Consumer,
Service & Family Dispute Matters.

Phone: 9582144748

Dear Friend,

First of all there is no legal sanctity of the payment of 3 Corores in cash, if the person at the receiving end denies and there is no coroborated evidence to establish it. Further, it is also though not a illegal activity in money transaction by way of cash transaction but against the RBI advisory that any payment of more then Rs 20 Thousands shall have to be not in cash but by way of the intra bank transactions only.

Now Come to the unregistered Agreement issue, any agreement whether it is a registered one or unregistered is having the same lawful enforcement in the eyes of the court. Though there is some category in the Indian Registration Act 1908 that makes compulsory for certain agreements which has to be registered on the either some legal ground or on the pecuniary grounds. In its Explanation it states under Sec 17 that  "A document purporting or operating to effect a contract for the sale of immovable property shall not be deemed to require or ever to have required registration by reason only of the fact that such document contains a recital of the payment of any earnest money or of the whole or any part of the purchase money".

Advised, always take assistance from an experienced and well educated Advocate of the field. You can see my credentials on site for my appraisal.

Click "LIKE" in appreciation of the above answer.

Anand Bali, Adv.
(B.Com., M.A., LL.B., M.B.A.)

Supreme Court Of India
Delhi High Court & Other
District, Tribunal & Consumer Courts.
Civil, Criminal, Property, Recovery, Consumer,
Service & Family Dispute Matters.

Phone: 9582144748

Well advised by learned advocate Mr.Bali.  As per supreme court ruling unregistered sale agreement is invalid.  Paying in cash more than Rs. 50,000/- is illegal, any payment above that amunt has to be paid by cheque or draft only hence it loses its legal sanctity.

Dear Kalaiselvan

U have mentioned "As per supreme court ruling unregistered sale agreement is invalid"

And "Paying in cash more than Rs. 50,000/- is illegal"

Can u give the citations for these rulings???

For citations, you may browse the sites indiakanoon.org or google. The income tax act is very clear about the cash transaction beyond rs. 50,000/- visit the income tax act.

1.   An unregistered Agreement can be regularised by duly paying Fine, Penalty and the Registration fees of that State.   An unregistered agreement is not ILLEGAL.  However the court of law, would not cognizance of disputes involving unregistered agreements.

2.  Paying Three Crore in Cash, is irregular .BUT.  NOT ILLEGAL.  This too can be duly regularised, after following due procedure of law, by the Purchaser and the Seller.  The Contract Act has no bar for payment in CASH (whichsoever amount) and neither can the contract be declared invalid, for payment in Cash.

Keep Smiling .... Hemant Agarwal
https://hemantagarwal21.blogspot.in/?view=sidebar