Dear Sir

That he cant do that. He must issue a legal notice for specific performance. Then he has to register a case of specific performance before the court. We need to look into documents for more clarity. We will protect you from sale and other proceedings and we need to required immediate actions to stop the process. A small delay may cost us huge damage.

Feel free for any assistance.

1. let the lender file court case

2. when you inform the court that you are willing to repay his loan, the court will decline his prayer to register the property in his name

3. however if you are repaying the loan then you also have to pay the agreed interest for the loan amount

1. lender wants sale deed to be registered in his name for a property whose actual market value is way above the loan amount - for non payment of his loan of 30 lacs??

2. surely court will not allow this

3. send him a written reply to his notice stating that you are ready to repay his loan with reasonable interest and there is no need to file any threatened court case

4. if he proceeds to file any such case, you can take out a notice of motion application saying that he does not have any cause of action as you were always ready to repay his loan but he refused to accept repayment for ulterior motives

Litigation is long drawn and expensive proposition

2) even if financier goes you court it would take years fir suit to be disposed of

3) offer to repay the loan amount agree to deposit Rs 30 lakhs in court

If value of property is 4.5 cr he would insist that decree fir specific performance be passed

2) it is necessary to peruse agreement entered into by you to advice further

Dear Client,

Sale agreement ?

What are the terms of sale agreement (security ) , I think sale will invoked only on default on repayment.

if you have not defaulted in repaying EMIs, no court relief.

Dear Sir,

You are in dangerous situation. You must see the advocate immediately. If other party not yet approached the Court then you must try to send reply and file a suit for specific performance or recovery of money paid with interest. The law is as follows.

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The courts grants the relief of specific performance in the following situations- If the compensation to be awarded cannot be determined. Remedy of specific performance is awarded in cases where it is impossible to fix compensation. In this case, the court directs the defendant to perform his promise as agreement as agreed at the time of making the contract. Remedy of specific performance is awarded when there is no substitute or alternate for the subject matter of the contract. Remedy of specific performance is awarded in case of goods, the value of which cannot be easily ascertained and the goods have a unique character. For example, buildings, land or goods having special value for the plaintiff. Remedy of specific performance is awarded at the sole discretion of the court. However, there are certain circumstances when this remedy cannot be awarded. For instance, when the specific performance is impossible, when the contract is too vague to be enforced, when the element of ad-idem-consensus is missing, the contract was made for no consideration, when the contract is void or unenforceable etc.

There is an ongoing debate in the legal literature regarding the desirability of specific performance. Economists, generally, take the view that specific performance should be reserved to exceptional settings, because it is costly to administer and may deter promisors from engaging in efficient breach.

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http://mja.gov.in/Site/Upload/GR/Final%20Summary%20Civil.pdf

The courts grants the relief of specific performance in the following situations-

1. If the compensation to be awarded cannot be determined. Remedy of specific performance is awarded in cases where it is impossible to fix compensation. In this case, the court directs the defendant to perform his promise as agreement as agreed at the time of making the contract.

2. Remedy of specific performance is awarded when there is no substitute or alternate for the subject matter of the contract.

3. Remedy of specific performance is awarded in case of goods, the value of which cannot be easily ascertained and the goods have a unique character. For example, buildings, land or goods having special value for the plaintiff.

4. Remedy of specific performance is awarded at the sole discretion of the court.

However, there are certain circumstances when this remedy cannot be awarded. For instance, when the specific performance is impossible, when the contract is too vague to be enforced, when the element of ad-idem-consensus is missing, the contract was made for no consideration, when the contract is void or unenforceable etc.

There is an ongoing debate in the legal literature regarding the desirability of specific performance. Economists, generally, take the view that specific performance should be reserved to exceptional settings, because it is costly to administer and may deter promisors from engaging in efficient breach.

Section 10 in The Specific Relief Act, 1963

10. Cases in which specific performance of contract enforceable.—Except as otherwise provided in this Chapter, the specific performance of any contract may, in the discretion of the court, be enforced—

(a) when there exists no standard for ascertaining actual damage caused by the non-performance of the act agreed to be done; or

(b) when the act agreed to be done is such that compensation in money for its non-performance would not afford adequate relief. Explanation.—Unless and until the contrary is proved, the court shall presume—

(i) that the breach of a contract to transfer immovable property cannot be adequately relieved by compensation in money; and

(ii) that the breach of a contract to transfer movable property can be so relieved except in the following cases:—

(a) where the property is not an ordinary article of commerce, or is of special value or interest to the plaintiff, or consists of goods which are not easily obtainable in the market;

(b) where the property is held by the defendant as the agent or trustee of the plaintiff.

You may send him a legal notice stating that you are ready and willing to return the loan amount with nominal interest and demand him to cancel the sale agreement entered with him for the purpose of security to the loan availed.

Let him approach court with his proposal to file a specific performance suit, you can challenge the same on the basis of this legal notice and can express before court your willingness to pay the loan amount, which court will accept and dispose the case accordingly.

He had issued the notice I couldn't reply due to health and family problems through orally I had informed that I wil pay pack the amt given now he is telling I wil do sale deed through court and he has sent messages regarding those now he is not ready to talk directly he is telling we shall see in court !! But in front of court I am ready to settle 30 laks with reasonable I interest but propertyarket value is 4.5 crores but in agreement it was only 2.30 crores he has written as 30 laks advance !! Should I wait till he takes court ?

When you received the legal notice it becomes your duty to reply back.

Even now you issue a reply to his notice mentioning the facts and express your willingness to repay his loan amount.

Let him go to court, you can challenge the same properly on the basis of documentary evidences in your side.