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Court rules prior agreement unenforceable, allows declaration of nullity for gift deed registration. The court held that the first respondent could not be compelled to register the settlement deed without canceling the prior agreement of sale. It agreed ...
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Court rules prior agreement unenforceable, allows declaration of nullity for gift deed registration.
The court held that the first respondent could not be compelled to register the settlement deed without canceling the prior agreement of sale. It agreed with the petitioner that the agreement of sale from 2006 had expired and was unenforceable due to the second respondent's lack of readiness to perform. The court advised the petitioner to file a declaratory suit in the civil court to determine the agreement's unenforceability. The writ petition was disposed of, granting the petitioner liberty to seek a declaration that the agreement of sale is null and void, allowing registration of the gift deed if successful.
Issues: Challenge to refusal to register settlement deed based on prior agreement of sale.
Analysis: The petitioner contested a check slip issued by the first respondent, refusing to register a settlement deed due to a prior agreement of sale with the second respondent. The court noted that as per current rules, the first respondent cannot be compelled to register the settlement deed unless the registered agreement of sale is legally canceled. The petitioner argued that the agreement of sale from 2006 had expired, and the second respondent had not shown readiness to perform, rendering the agreement unenforceable. The court agreed with the petitioner's legal stance, stating that the unenforceability of the agreement should be determined by a civil court through a declaratory suit.
The petitioner expressed concern that a civil suit might be rejected on grounds of limitation. However, the court clarified that there should be no issue in filing a suit now, as the cause of action to declare the agreement unenforceable arose when the petitioner executed a gift deed to her granddaughter. Consequently, the writ petition was disposed of, granting the petitioner liberty to approach the competent Civil Court to seek a declaration that the agreement of sale is null and void. The court directed the Civil Court to entertain the suit, make a decision based on merits and law, and if successful, allow the petitioner to register the gift deed with the first respondent based on the court's judgment and decree. No costs were awarded in this matter.
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