Legal Question in Real Estate Law in India
Govt leased a piece of land to Mr.X in the year 1984 for 90 years, the premium of which was to be paid in 10 equal installments, first installment being paid at the time of execution of the lease deed. The lease deed was silent about non-alienation period and did not require Govt's prior consent before transfer of rights to third party.
I entered into an unregistered agreement (no date fixed for performance) in 1991 with Mr.X to purchase the aforesaid leasehold plot for a consideration. Simultaneously, Mr.X appointed my husband as his attorney holder for smooth alienation of the land in my favour. On the same date, I took over the possession of the land as stated in the agreement. Govt was aware of this sale from an unknown source through a complaint letter received in 1992.
I then paid the balance 9 installments and cleared the Govt premium dues on behalf of Mr.X through the attorney holder. I have also paid the entire consideration amount to Mr.X as per agreement with money receipts duly acknowledged by him.
Before I could transfer the land in my name, the lease was cancelled (determined) in 1999 due to non-utilisation of land. Thereafter, Mr.X appealed before different forums and was successful in getting an order in Jan'2011 from the High Court for reconsideration of lease. It is now pending with the Govt for consideration. Please note that I entered into the agreement when the lease was valid and subsisting.
Mr.X, the lessee, has cancelled the Power unilaterally in 2003 and has refused on 26.01.2011 to transfer the land if lease is restored. However, I'm continuing with peaceful possession of the land as on date. I have now filed a suit for specific performance of the contract with Mr.X and Govt as defendants. In the suit, I have an alternative prayer to alienate the land in my favour on basis of preferential rights.
I request this forum to please answer my following queries:
1. Whether specific performance can be enforced when vendor has no rights and it is pending with Govt for consideration?
2. Is it barred by limitation?
3. Can Govt directly settle the land in my favour?
4. Whether unregistered agreement can be produced as an evidence of contract?
Please provide me with decision references so that I can help my advocate in conducting my case. Thanks in advance.
1 Answer from Attorneys
1. Maintainability of suit appears doubtful.
2. If no no time is prescribed for performance, then limitation would be 3 years from refusal as per later part of Article 54 of the Limitation Act.
3. May be. But, appear difficult.
4. Registration of an agreement is generally not compulsory. See any amendment carried out by the State in which land is situated. If registration of agreement is not compulsory, then unregistered agreement can be adduced in evidence.
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