Hari M
Asked April 28, 2017

Sale of Property

  • 1 Answer
  • 481 Views

Sir I have done agreement for my site sale (not registered) with one property seller (Real estate Business men). He has agreed to pay my total amount within 3 months as per agreement. he has paid only 3 lakh (24% of total) during the agreement (not agreement day, after one month). I requested him thru phone n number time after 3 months for my amount balance because I have to pay some one for purchase of land for my family. he not paid and not ready to pay. After 7 to 8 months he told he will give money come with document for registration. I went to with my original document for registration. he was given 4 lakh and told next morning he will give rest of amount and taken original documents. next morning he vanished from the city, I was waited and come back to my native place. He never ready to pay rest amount. I have communicated him, you are not paid me my amount within time and I have also lost my purchase of land due to your non-payment. I will not give my site to you because your not paid money in time. he went to court. in lower court I have won but he went to high court. please let me know the following. He not paid amount in agreement day and not paid within 3 months & not paid total amount within 3 months. please guide

Answer 1

Under Section 55  of the Indian Contract Act, 1872, when a party to a contract promises to do a certain thing at or before a specified time and fails to do any such thing at or before the specified time the contract, or so much of it as has not been performed, becomes voidable at the option of the promisee, if the intention of the parties was that time should be of the essence of the contract.

Since the property seller didn't pay the agreed sum of money within the time-frame decided in the Contract you were right to deny him the possession. This will be more effective if your agreement has "Time is of the essence" clause in it.

You should have attached a copy of  lower court's order for our reference. Your appeal will be heard on the basis of that order.  Did the property seller knew at the time of agreement day that you will use the money received in that sale to procure another land you have mentioned here that you have requested him to pay you the balance sum as it will be needed by you for purchasing another land. You can take a plea that you have suffered substantial loss due to non-payment of contractual money within a stipulated time frame and thus you should be awarded some compensation for the consequential damages suffered by you.

Agree Comment 0 Agrees about 3 years ago

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