civil law civil law

1 month ago

A builder had signed a development agreement to construct our vacant plot in Maharashtra in the year 2008, he was aware that a case was going on in the court on this property (testematory suit) , inspite of that he signed this agreement & got it registered with NO time limit in the agreement.
It has been 16 years, he has not bothered to start the work and has also not paid any money to one of the Legal share holders of this property.

Please suggest what Legal action can I take on him & on what grounds can I approach the court to cancel this agreement as he has been threatening me, the daughter of the Legal heir he did not pay a single penny to in the year 2008 when he signed the Development agreement.

Anik

Responded 4 weeks ago

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A.Dear Client,

When a property-related suit is pending before a Court of Law, the subject matter of the suit cannot be the basis for any agreement or contract. Any agreement made by the parties aware of the pending litigation is invalid and void ab initio, as it is against the law. Section 56 of the Indian Contract Act, 1872, states that an agreement to perform an impossible act is void.

Under Article 115 of the Indian Limitation Act, the limitation period for breach of contract is three years from the date the contract is breached. This period begins either from the expiration of the development agreement or the date specified in the agreement. If a development agreement was made in 2008 but the builder did not start construction, rendering the agreement expired, a civil suit for a declaration under the Specific Relief Act, 1963, should be filed before the competent Civil Court. This suit should seek cancellation of the development agreement and an injunction under Order 39 Rule 1 & 2 CPC read with Section 151 of CPC, requesting the Court to exercise its inherent power to provide justice in the matter.
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Vidhi Samaadhaan Vidhi Samaadhaan

Legal Counsel Vidhikarya

Responded 1 month ago

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A.Dear Client,
When a suit related to a property is sub-judice(pending) before a Court of Law, that cannot be a subject matter of an agreement or contract. Being aware of the facts if the parties made any agreement or contract is invalid/void ab initio being infructuous and impermissible under law. Section 56 of the Contract Act 1872 provides that an agreement to do an impossible act is void. Under Article 115 of the Indian Limitation Act, the period of limitation for the breach of any contract is three years from the date when the contract is broken. The limitation period will also run from the date of expiration of the development agreement or on the date mentioned in the said agreement. A development agreement was made in 2008, and then said agreement has already expired in the absence of non-execution of the agreement by the builder due to not starting the construction. In the given scenario, you need to file a civil suit for a declaration under the Specific Relief Act, 1963 before the competent Civil Court seeking cancellation of the development agreement and an order of injunction under Order 39 Rule 1 & 2 CPC read with Section 151 of CPC requesting the Court to exercise its inherent power to do justice. Reach out to an Advocate experienced in civil matters for guidance and steps.
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Vidhi Samaadhaan Vidhi Samaadhaan

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