Legal Question in Civil Rights Law in India

Hello Sir,

I am in a situation. We made an agreement with a builder for the purpose of sale of land. The agreement made was as "We (The owner) will sell total land @ 400/- per Sq.ft. to the ABC builder. Total cost of the land will be 1.2 Cr. out of which 70lac will be paid by cash to us while rest amound will be paid by ABC builder by registering same amount of plot on our name. The agreement time line was 3 months. As an advance, ABC builder has paid 24 lac by cheque no. 12345. If within 3 months, ABC builder do not pay rest amount by their respective form, ABC builder will loose 24lac. If we (owner) fail to register the land on ABC builder due to our problem, we will pay ABC builder 48 Lac."

After 1 month, ABC builder registered property of 35 Lac value on our name. But then the builder remain silent for a long time. After 9 months from date of agreement, we served a notice to ABC builder mentioning the timelines of agreement and that as per agreement term, the agreement will be cancelled.

There was no response from the ABC builder. So After 18 months (from date of agreement), we served another notice to ABC builder mentinong the details of earlier notice and to repond with in 15 days. Fail to which, subject agreement will be cancelled.

Still there was no response from the builder.

Now, after nearly 2.4 years, the builder has sent some one to talk mentiong his financial situation. In other way he also threatened us that if we do not sale, he will get the plot registered through magistrate power. According to him, he has paid all the amount to us. But in that case when we respond by stating that ok we will solve this case through court, he is hesitating. He express his interest in solving the case mutually.

Other information about the property: The said land is from ancestors. So there are 4 owners of the land. We three brother and our mother through all legal way as Father expired. Befor the agreement, we three brothers had given power of attorney to mother for sale of land as we reside outside. But after all these issue, we cancelled the power of attorney in front of magistrate.

Experts, I need your advise / solution in this case. Do we still be worried about threatening of builder that he will some how occupy the land legally? Any other consequences could probably happen?

Asked on 9/27/13, 3:06 am

1 Answer from Attorneys

Fca Prashant Chavan Expert Edge LLP


Dear Sirs,

I interpret your query that the builder agrees to pay you Rs. 1.2 crores for the land and gets it registered in your name for the value of Rs. 35 lakhs and pays you Rs. 24 lakhs by cheque, implying that the land will be transferred by your mother, to the builder's name on payment of the remaining Rs. 96 lakhs, and as you say Rs. 70 lakhs in cash and Rs. 26 lakhs by cheque. The builder has proof of the cheque payment of Rs. 24 lakhs to you, and the Stamp Duty and Registration expense receipts, if he has incurred it on your behalf. So only the issue of the balance Rs. 70 lakhs remains to be cleared, which boils down to the receipt for payment. Since the builder claims that he has already paid and settled the entire purchase consideration to you, the land would have been registered in the builder's name, and not in your name. The onus therefore lies on the builder to prove that he has settled you in full.


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Answered on 9/27/13, 6:06 am

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