Sale Agreement & Supreme Court
8 months ago
Dear sir/madam,
We have executed an unregistered Agreement of Sale about 25 years ago to two persons without taking any advance amount. Those two persons never approached us in the last 25 years to register the Agreement of Sale. My question is, can those two persons enforce the Agreement of Sale in the court for registration by the seller?
Thanks in advance!
A.Dear Client,
The Bench of Supreme Court comprising of Justice M.R. Shah and Justice Krishna Murari has further held that an unregistered Agreement to Sell, which is otherwise required to be compulsorily registered, shall be admissible in evidence in a suit for specific performance in terms of Proviso to Section 49 of Registration Act. Article 54 of the Limitation Act stipulates that the limitation for filing the suit for specific performance of the contract is three years from the date fixed for the performance. Such an agreement or contract will be enforceable for three years following the date of execution unless otherwise specified to the contrary. Clause (a) of section 49 provides that an unregistered document shall not affect any immovable property comprised therein if such document is required to be registered by any law. So after the lapse of 25 years, the document lost its validity and enforceability under the law.
The Bench of Supreme Court comprising of Justice M.R. Shah and Justice Krishna Murari has further held that an unregistered Agreement to Sell, which is otherwise required to be compulsorily registered, shall be admissible in evidence in a suit for specific performance in terms of Proviso to Section 49 of Registration Act. Article 54 of the Limitation Act stipulates that the limitation for filing the suit for specific performance of the contract is three years from the date fixed for the performance. Such an agreement or contract will be enforceable for three years following the date of execution unless otherwise specified to the contrary. Clause (a) of section 49 provides that an unregistered document shall not affect any immovable property comprised therein if such document is required to be registered by any law. So after the lapse of 25 years, the document lost its validity and enforceability under the law.
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A.Dear Clint,
They have no cause of action against you. A registered sale agreement is deemed to be valid for three years unless there is a clause specified to the contrary
They have no cause of action against you. A registered sale agreement is deemed to be valid for three years unless there is a clause specified to the contrary
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