DPC Notes-1
DPC Notes-1
DPC Notes-1
Core of conveyancing:
- Movable Property: Possession
- Immoveable property: Title
TOPA Essentials:
● Title - Passes from one person to another only upon registration of the document.
● Sale
● Agree to sell
● Mortgage
● Lease
● Leave and license
● Gift
Objective question -
Tiller of the land (Tenancy of the property):
Goa - Mundkar
Maharashtra - Kul (Local language connotation for the tiller of the land)
Objective question - An agreement cannot and does not transfer title in the property.
(Ans. cannot, does not, transfer)
Objective question - It is the deed, when registered, that transfers title in property.
(Ans. deed, when registered)
EXERCISE
Draft a will. Will does not need to be registered to be a will.
Ask client about their property. (NOT THE VALUE OF THE PROPERTY)
Requirements of a will:
● Testator must have Testamentary Disposition. (Be mentally and physically sound,
should not be infirm.)(Two important terms - undue influence and coercion. Refer
case law hereunder.)
● Attested by two witnesses. (Two witnesses must see each other and the testator
signing the will. Without attestation there is no will.)
● A will doesn’t have to be registered.
● A will doesn’t have to be stamped.
Younger son ill treated me for 84 years and he deprived me of food and water, and
therefore, and hence I’m giving everything to big bro.
- Proved to be non-genuine on the grounds of: If I am stating that my child is ill treating
me, and I have so many properties, why would I still stay with the child?? For so
long?
LECTURE DATED FEBRUARY 13, 2021
Question: Draft an agreement for development of property comprising land and building.
The building having 30 flats of which 2 are in possession of the owner and the balance are
occupied by tenants. (There is a difference between the words possess and occupy.) A is
the owner of the property, he has two minor children aged 8 and 10 years. A inherited the
property by way of a will from his father. The father inherited the property from his father, and
the grandfather had acquired the property by deed of conveyance executed and registered
in 1930.
Title has to be ascertained about how the property has come to Mr. A:
- Will has to be probated;
- A has to also go to court to appoint guardian ad litem (Guardianship certificate);
- Vacating tenants - either by developer himself or with the help of the owner;
- Free of encumbrances / mortgages;
- There is no litigation pending in the court in relation to this property (lis pendens
notice has been registered in the sub-registrar’s office - Notice pending litigation);
- Authenticity of ownership of A.
- Whether requisition something something (what?)
Question: The developer’s lawyer will raise Requisitions upon the owner’s lawyer raising
questions about the title. These requisitions will be in line with the factors to be ascertained
for title as described above.
AGREEMENT
Articles of agreement made at Mumbai the 18th day of February, in the Christian year of
2021 between A of Mumbai, Indian Inhabitant, residing at (whatever property address), (this
hereinafter clause has been taken from Slide 2 of PPT of Will and testament) hereinafter
referred to as owner, which expression shall unless …. (do not write successors in this case)
Of the One Part, and
B, a partnership firm constituted under Partnership Act, 1972 and having its office at
(address), hereinafter referred to as the “Developers” (which expression shall, unless
repugnant to the context or meaning thereof, mean and include the partners / partner of the
said partnership business for the time being or the survivors of them and the heirs,
administrators, executors and successors of the last surviving partner of the Other Part.)
Recital:
WHEREAS
A) Pursuant to the deed of conveyance dated (Date, 1930) executed between Mr. Random
Person and Mr. Grandfather Of A and registered at the office of the Sub registrar of
Assurance, Bombay (ensure that the old name is used if the time period is old) in Book
No. 123 under Serial No. 123 (hereinafter referred to as “Said Conveyance”). Mr.
Random Person sold, conveyed and assured unto Mr. Grandfather Of A. all that piece or
parcel of land bearing survey no 123 and C.T.S. No. 789 admeasuring xxx square meters
equivalent to xxx square yards and situate (never write situated) at (address of property)
(hereinafter referred to as “Said Land”);
B) Pursuant to the permissions obtained by Mr. Grandfather Of A from the Municipal
Corporation of Greater Bombay (hereinafter referred to as “BMC”), sanctioned by BMC,
the grandfather constructed a building comprising ground and 10 storeys (hereinafter
referred to as the “Said Property”) and inducted in the said building 18 tenants in the
building.
(Question: What can happen in a building of a landlord/tenant category? Ans.: Acquisition
and Requisition of flats by the Government (usually for defence purposes))
C) Mr. Grandfather Of A expired in Bombay on (date), leaving two sons as his only children
and legal heirs.
D) Mr. Grandfather Of A left a will dated (date) bequeathing the said property to Son 1 to the
exclusion of Son 2 whereby Son 1 inherited the said property.
E) Son 1 obtained a probate from the HC of judicature of Bombay in respect of the will of his
father, and thus acquired ownership of said property.
(Question: On which document is ownership of property reflected? Ans.: Index II/ Property
Extract Card)
F) Son 1 died in Bombay on (date) leaving A as his only child and legal heir. Son 1 left a will
dated (date) bequeathing the said property to A absolutely.
G) The Owner obtained a probate from the HC of judicature of Bombay in respect of the will
of his father, and thus acquired ownership of said property.
H) Pursuant to the petition filed by the Owner in the High Court of Bombay, he was
appointed the Guardian ad litem of his two minor children kid 1 and kid 2, aged 10 and 8
respectively, and pursuant thereto, he has agreed to deposit the share of two minors in
the Honourable Bombay High Court.
(Question: What is the name of authority under the Urban Land Ceiling Act? Ans.:
Competent Authority)
I) The Owner does not have the requisite expertise and the financial wherewithal to
develop the property as the said property is in need of urgent repair, and therefore needs
to be redeveloped.
J) The Developer has represented to the Owner that he has the experience and expertise
in developing properties, and also the monetary power to develop the properties.
K) Relying on the representations of the Developer, the Owner has agreed to grant to the
developer, development rights to the developers on the Terms and Conditions
hereinafter set out:
- The operative portion of a deed starts with the ‘testatum clause’. Check after recital ‘K’
below for the draft testatum clause.
- In recitals, paragraphs are alphabetically designated whereas the ‘set out’ portion is
numbered numerically.
- The money paid by the developer to the owner of the land for TDR is called ‘premium’.
- The word ‘earnest’ (earnest money) shows you’re receiving part of consideration and
binding the owner to the contract.
- If owners are single use the word ‘doth’, in case of plural use ‘do’.
- As a lawyer, never get involved in financial negotiations taking place between the
parties.
- Question: Developer and his agents and employees are allowed limited access of
ingress (inside) and egress (outside) to the property as a ‘licensee’.
- As the lawyer of the owner, ensure that the property is given to the developer on an “as
is - where is” basis. (Caveat Emptor)
Part of the below agreement was dictated on February 18, 2021. The rest was dictated on
February 19, 2021. For the sake of completeness, the whole agreement is reproduced
hereunder:
AGREEMENT
Articles of agreement made at Mumbai the 18th day of February, in the Christian year of
2021 between A of Mumbai, Indian Inhabitant, residing at (whatever property address), (this
hereinafter clause has been taken from Slide 2 of PPT of Will and testament) hereinafter
referred to as owner, which expression shall unless …. (do not write successors in this case)
Of the One Part, and
B, a partnership firm constituted under Partnership Act, 1972 and having its office at
(address), hereinafter referred to as the “Developers” (which expression shall, unless
repugnant to the context or meaning thereof, mean and include the partners / partner of the
said partnership business for the time being or the survivors of them and the heirs,
administrators, executors and successors of the last surviving partner of the Other Part.)
Recital:
WHEREAS
(A) Pursuant to the deed of conveyance dated (Date, 1930) executed between Mr. Random
Person and Mr. Grandfather Of A and registered at the office of the Sub registrar of
Assurance, Bombay (ensure that the old name is used if the time period is old) in Book
No. 123 under Serial No. 123 (hereinafter referred to as “Said Conveyance”). Mr.
Random Person sold, conveyed and assured unto Mr. Grandfather Of A all that piece or
parcel of land bearing survey no 123 and C.T.S. No. 789 admeasuring xxx square meters
equivalent to xxx square yards and situate (never write situated) at (address of property)
(hereinafter referred to as “Said Land”);
(B) Pursuant to the permissions obtained by Mr. Grandfather Of A from the Municipal
Corporation of Greater Bombay (hereinafter referred to as “BMC”), sanctioned by BMC,
the grandfather constructed a building comprising ground and 10 storeys (hereinafter
referred to as the “Said Property”) and inducted in the said building 18 tenants in the
building.
(Question: What can happen in a building of a landlord/tenant category? Ans.: Acquisition
and Requisition of flats by the Government (usually for defence purposes))
(C) Mr. Grandfather Of A expired in Bombay on (date), leaving two sons as his only children
and legal heirs.
(D) Mr. Grandfather Of A left a will dated (date) bequeathing the said property to Son 1 to the
exclusion of Son 2 whereby Son 1 inherited the said property.
(E) Son 1 obtained a probate from the HC of judicature of Bombay in respect of the will of his
father, and thus acquired ownership of said property.
(Question: On which document is ownership of property reflected? Ans.: Index II/ Property
Extract Card)
(F) Son 1 died in Bombay on (date) leaving A as his only child and legal heir. Son 1 left a will
dated (date) bequeathing the said property to A absolutely.
(G) The Owner obtained a probate from the HC of judicature of Bombay in respect of the will
of his father, and thus acquired ownership of said property.
(H) Pursuant to the petition filed by the Owner in the High Court of Bombay, he was
appointed the Guardian ad litem of his two minor children kid 1 and kid 2, aged 10 and 8
respectively, and pursuant thereto, he has agreed to deposit the share of two minors in
the Honourable Bombay High Court.
(Question: What is the name of authority under the Urban Land Ceiling Act? Ans.:
Competent Authority)
(I) The Owner does not have the requisite expertise and the financial wherewithal to
develop the property as the said property is in need of urgent repair, and therefore needs
to be redeveloped.
(J) The Developer has represented to the Owner that he has the experience and expertise
in developing properties, and also the monetary power to develop the properties.
(K) Relying on the representations of the Developer, the Owner has agreed to grant to the
developer, development rights (Right of the owner to allow the developer to
develop) to the developers on the Terms and Conditions hereinafter set out:
(Testatum Clause:)
NOW THIS AGREEMENT WITNESSETH and it is hereby agreed by and between the
parties hereto as follows:
(1) The owner hereby grants to the developer, the right and the authority to develop all that
piece or parcel of land bearing Survey No. 123 and C.T.S. No. 789 admeasuring xxx
square meters situate at (address) together with the buildings standing thereon known as
Kash Kash Mahal, more particularly described in the schedule hereunder written
(hereinafter referred to as the “said property'' and delineated on the plan thereof hereto
annexed and shown thereon surrounded by blue coloured boundary lines.
(2) The developer shall at their own cost and expenses develop the property by utilizing the
entire available Floor Space Index (FSI) originating from the land and Transferable
Development Rights (TDR) which may be permitted to be loaded and incidental to the
FSI already available by payment of premium or otherwise howsoever under the
applicable laws governing development of properties in the city of Mumbai.
(3) The parties hereto confirm that the arrangement and the agreement recorded herein is
subject to the verification and examination of the title to the satisfaction of M/s.
Developer’s Lawyer & Co.
(4) In consideration of the owner granting development rights to the developers, the
developer shall pay to the owner, an aggregate consideration of Rs. 20 crore (Rupees
Twenty Crores only), which shall be paid in the manner following:
(a) A sum of Rs. 2 crore as earnest receipt whereof the owner doth hereby admit and
acknowledge;
(b) A sum of Rs. 3 crore on the owner causing to certify the title of the property to the
satisfaction of M/s. Developer’s Lawyer & Co.;
(c) A sum of Rs. 5 crore on the tenants in the building, vacating their respective
premises on the developers providing temporary alternate accommodations to the
tenants at the cost and expense of the developer;
(d) A sum of Rs. 7 crore on the developers being permitted to enter the property for the
purpose of demolishing the building and constructing on the land a new building or
buildings on the said land together with a comprehensive power of attorney to be
executed by the owner in favour of the developers. It is expressly agreed by and
between the parties hereto that the developer shall be permitted to enter the property
only as a licensee with limited access of ingress (inside) and egress (outside) to the
developer and for his employees, vehicles and agents for the purpose of the
construction of the new building or buildings;
(e) And the balance of Rs. 3 crore against the owner executing the conveyance in favour
of the co-operative society, that shall be formed of the purchasers of the new flats in
the new society and the tenants who will be rehabilitated in the new building or
buildings. (Below part was dictated on February 20, 2021)
(f) In addition to the aforesaid consideration, the Developers undertake to allot 2 flats
admeasuring __ square feet each, in the newly developed building, to the Owner.
(5) The Developers agree and undertake to rehabilitate the tenants in Wing B (means Wing
A - all new purchasers, Wing B - allotment to tenants) by allotting to them flats
admeasuring ___ square feet each without any cost whatsoever (developer agrees to
give flats to the tenants because it's their right.)
(Question: Caveat emptor in a property transaction equals to ___ (Ans.: as is - where is))
(6) (I) The development rights granted herein by the Owner to the Developers are on as-is
where-is basis and the Developer shall develop the Property at their own cost and
expenses by demolishing the existing structure and constructing thereon, a new building
comprising podium and ___ storeys in accordance with the plans approved by BMC and
the town-planning authorities.
(II) It is agreed that the Developer shall be entitled to avail of the benefits and
advantages of the development rules in force in the city of Mumbai under which the
Property shall be developed and to sell the premises in the new building in accordance
with the provisions of the Maharashtra Ownership Flats Act and to receive and realise
the purchase consideration in respect of the sale of the flats and transfer the new
building in favour of the co-operative society of the purchasers of the premises; and to do
all such acts, deeds and things in respect thereof, and in particular:
(a) (Keep in mind what are the things that a developer has to do) Prepare the layout
for the primary development of the Property and to have the same sanctioned by
BMC and other local authorities.
(b) Prepare the plans of the proposed building to be constructed on the Property in
accordance with the rules and regulations of the applicable laws, BMC and the
town-planning authority (surveyor office etc.). And to submit the said plans to the
concerned authorities for their approval and to sign and execute all writings,
applications and undertakings as may be required or necessary in connection with
the approval and sanction of the plans.
(c) To appoint architects, surveyors, engineers, contractors and labour force required
for the development of the Property. (Developer has to register the names of
engineers, architects, surveyors with BMC - Because BMC won’t allow developer to
appoint anyone unless that person is on its approved list)
(d) Make applications to the concerned authorities for obtaining water and electricity
connections and for permits or quota for cement, steel and other controlled building
material. (permits and quota isn’t relevant in today’s time - only relevant when
declared by the government as a controlled item being an essential commodity).
(e) Make necessary applications to modify and revise the plans and the specifications
already submitted to BMC and other authorities to meet a contingency.
(f) To accept service of any writs, summons, or other legal process and to represent
the Owner in any judicial or quasi-judicial tribunal and appear before BMC,
Tehsildar, Talathi, Collector, for the purpose of any matter relating to the
development of the property and if necessary, file suits or other proceedings in any
court of competent jurisdiction and for the said purpose to sign, execute, verify and
declare applications, plaints, writs, defences, written statements, vakalatnamas,
documents, affidavits and all other necessary writings. (legal power given to
developer so that owner is not troubled)
(g) Subject to the provisions of Clause __ hereof, enter upon the Property to demolish
the existing structure and to construct a new building thereon and enter into
agreements for sale or allotment of flats in the new building with the purchasers or
allottees of the flats, it be expressly agreed and declared that the Developer shall
be entitled to enter the Property for the purpose of development only and upon the
happening of the contingency mentioned in Clause ___ hereof. (Co-relate with
Clause 4 - Payment of INR 7 crore is necessary to achieve this right.)
(Question: Easements Act gives developers the right to develop the property.)
(7) The Developers shall develop the Property on their own account and liability and shall be
responsible and liable to make requisite payment to the Government, BMC and local
authorities, the engineers, the contractors, the workmen engaged in the development of
the Property. The Developer alone shall be responsible and liable to all workmen,
engineers and labourers for any accident or death or any injury caused to them during
the development process.
(8) Upon the payment of the sum of Rs. 7 crores to the owner, the owner shall grant to the
Developer the license under the Indian Easement Act, 1882 to have the right of ingress
and egress, in and from the Property together with the architect, engineers, contractors,
labourers and workmen to develop the Property. (Below part was dictated on February
25, 2021)
(9) The Owner declares that he has not and nor shall he enter into any arrangement or
agreement with any person or any party in respect of the Property, and that, his
agreement with the Developers is valid, binding, and subsisting and shall not be revoked
or rescinded at any point of time by him except on the ground of non payment of the
consideration.
(10) The Owner covenants with the Developers as follows:
(a) He has absolute right to deal with the property, and no one other than himself has
any claim to or right in said property and that he has full right to grant
development rights to the developers. (This is called Covenant of Title)
(Question: Why is the word occupancy and inheritance used in the above
clause? Ans.: Occupancy - To combat a situation where a tenant might have
sub-tenanted the flat / house or apartment. Occupant in this case, is a person
who has no right to be there. Inheritance - Because the person who inherits will
become an occupant and the occupancy logic above will apply to this case.)
(11) The Developers shall be entitled to all muniments (documents) of title relating to the
property which are in the possession of the Owner.
(12) The Developers undertake and covenant as follows:
(a) They shall pay the consideration in the manner set out in Clause 4 hereof and
shall allot 2 flats to the owner as agreed;
(b) He shall complete the development and construction of the new building within 24
months from obtaining the commencement certificate from BMC.
(13) Stamp duty shall be borne and paid by the developers alone.
(14) This agreement shall be enforceable in courts in Mumbai alone.
(15) In case of any dispute or difference of opinion, as to the interpretation of this
agreement the same shall be referred to the arbitration of a single arbitrator which shall
be conducted in accordance with the provisions of the Arbitration and Conciliation Act,
1996. (More arbitrators mean more money to be paid. Hence, single arbitrator.)
IN WITNESS WHEREOF the parties hereto have set their respective hands to these
presents the day and the year first hereinabove written
1.………………………………………
2. ……………………………………….
POWER OF ATTORNEY
POWER OF ATTORNEY
WHEREAS,
(A) I am the absolute owner of a piece or parcel of land bearing Survey No. 123 and C.T.S.
No. 789 admeasuring xxx square meters situate at (address) together with the buildings
standing thereon known as Kash Kash Mahal (hereinafter known as the “Property”).
(B) I have entered into a development agreement with M/s. Developer, and I have granted
development rights to them.
(C) I am not in a position to attend to matters relating to said property, and am therefore
desirous of appointing Lawyer P and Q as my attorneys to perform the rights set out
herein.
(Question: Draft the operative portion of a Power of Attorney. Ans.: Below part.)
That I, A of Mumbai, Indian inhabitant, residing at Kash Kash Mahal, do hereby appoint and
nominate Lawyers P and Q as my attorneys in fact and at law to do and perform the
following acts and deeds and things:
(1) To represent me and make submissions on my behalf, both oral and in writing before
the Municipal Corporation of Greater Mumbai (hereinafter referred to as “BMC”), the
Town Planning Authority, the Sub-registrar of Assurance, Maharashtra State Electricity
Board (hereinafter referred to as “MSEB”), the Hydraulic department, the Government of
India, Government of Maharashtra and all other authorities as may be requisite and for
the said purpose, to sign, execute and verify applications, submissions, undertakings,
and affidavits and appear before all judicial and quasi-judicial authorities in any matter
relating to the development of the property.
(2) To prepare and submit plans and specifications in respect of the development of the
property and obtain the sanction for them from BMC and other planning authorities.
(3) To procure and load TDR (Transferable Development Rights) so as to avail of additional
FSI in the development of the property.
(4) To appoint architects, structural engineers and contractors for the purpose of the
development of the property.
(5) To negotiate with the tenants, with a view to causing them to vacate their respective
tenanted premises and inducting them in temporary alternate accommodation, and
paying to them license fee and compensation to enable them to occupy the same.
(6) To enter the property as a licensee and to develop the property by taking permissions
from all requisite authorities for utilising the TDR and availing the available FSI for the
purpose of constructing the new building or buildings.
(7) To enter into agreements with prospective purchasers of the new premises in the newly
developed building and cause to register the same at the office the Sub-registrar of
Assurance, Mumbai.
(8) To execute and verify the deed of conveyance in favour of the co-operative society or
the condominium, as the case may be, and to lodge the same and to prove the same at
the office the Sub-registrar of Assurance, Mumbai, and for the said purpose to pay the
requisite stamp duty and registration fee thereon.
(9) To accept service of Writs and processes issued by courts of competent jurisdictions or
tribunals and to sue and be sued by any person or persons in respect of any manner
affecting the development of the property and for the said purpose file plaints, written
statements, affidavits, Writ petitions and other pleadings and to execute and verify the
same before the officers concerned.
(10) To appoint lawyers, attorneys and advocates to represent me and the constituted
attorney in courts and tribunals for the said purpose.
(11) To appoint one or more substitutes in case of dire necessity and to delegate to such
substitute the same powers as herein contained.
AND I hereby declare and confirm that I hereby ratify all that will be done by my attorneys in
fact and at law provided however the said powers are exercised by my attorneys at their own
risk as to liability and the same are exercised at their own cost without recourse to me. I
further declare that the powers herein contained are exercised either jointly or severally and I
declare that the powers herein contained shall be exercised during the subsistence of the
development agreement and up to the stage of the execution of the deed of conveyance in
favour of the co-operative society or the condominium.
IN WITNESS WHEREOF I have set my hands to these presents the day and the Christian
year first hereinabove written
1. …………………………………
2. …………………………………
LECTURE DATED FEBRUARY 27, 2021
Pleadings
Question: T/F - Summary Suit is a suit filed under Order XXXIX of the Civil Procedure
Code. Ans.: False. Order XXXVII.
Question: Summary suit is an expeditious method of recovering a debt as against a normal
money suit.
Question: What are the eligibility norms to file a summary suit? (Order XXXVII of the CPC)
Ans.: A suit in which a plaintiff seeks to recover a debt or liquidated demand in money
payable by the defendant. This liquidated demand has to be on a written contract or an
enactment or on a guarantee or a suit for recovery of receivables.
Question: What are the two mandatory requirements to be set out in a plaint of a summary
suit?
Ans.: (1) There has to be an averment or a contention that the suit is filed under Order
XXXVII of the CPC.
(2) The plaintiff has to say that no relief, which does not fall within the ambit of Order XXXVII
has been claimed in the plaint.
Question: An interim application in a summary suit is known as ____ (Ans.: Summons for
judgement)
Question: An interim application in a normal / regular suit is known as either ____ or ___,
depending upon the nature of the application. (Ans.: Notice of motion or Chamber
Summons)
- There is no such thing as the High Court of Mumbai, it is the High Court of Judicature
at Bombay.
Question: Draft a plaint in a summary suit.
versus
VERIFICATION CLAUSE
There are certain words in leave and license agreement that are taboo. These are -
Possession and Rent. Many companies have gone into serious trouble when the lawyers
representing them have used the words possession and rent instead of proper words.
Question: Define a license and enumerate its ingredients or characteristics. What is the
most important feature of a license? Distinguish it from a lease.
Question: Draft the operative clause of a leave and license agreement.
Question: A license is of a temporary nature and does not create an Interest in favour of
the licensee (Ans.: Interest)
Question: What is a license - It is merely a permission to use a premises on an exigency
purpose, on a licensed basis. License has been defined in The Easements Act, 1882
Question: Why has subject to the earlier determination hereof as provided hereinafter been
written in Clause 1 of the Operative Clause? Because the agreement can be terminated
earlier in case of default by Licensee.
Question: Security Deposit (SD): If flat suffers damage, the licensor can deduct the requisite
amount from SD. If the licensee refuses to vacate, the licensor can take SD.
Licence Fee/Compensation to be used to signify charges incurred to licensee. DO NOT
EVER USE THE TERM RENT.
Question: How will you show that you are the legal owner of the Flat? - Provide in the
agreement that you will maintain that the original key is with you, and will provide the
duplicate key to the licensee.
Question: No need to follow due process of law in case of a leave and license agreement.
That is why leave and license agreements are so popular. For a tenant you need to follow
procedure under Rent Act. For licensee, procedure should be set out under the contract
itself.
Leave & License Agreement
Articles of Agreement made in Mumbai, the Fourth Day of March in the Christian Year 2021
between A, of Mumbai, Indian inhabitant residing at __ (hereinafter referred to as the
“Licensor” which expression shall unless repugnant to the context of meaning thereof mean
and include his heirs, executors, administrators and successors of One Part);
AND
__ of Mumbai, Indian inhabitant, residing at ___ (hereinafter referred to as the “Licensee”
which expression shall unless repugnant to the context of meaning thereof mean and include
his heirs, executors, administrators and successors of the Second Part);
WHEREAS
(A) The Licensor is the rightful owner of Flat No. 420 in the Building known as Blaze
Towers CHS by virtue of the fact that he is a member of Blaze Towers CHS and as
such member has right, title and interest in Flat No. 420 in the Building known as
Blaze Towers CHS situate at Parel.
(B) The Licensee is in need of a temporary accommodation for his personal residential
purposes and has therefore requested the Licensor to grant to him, license, in
respect of the Premises for a period of 3 years which the Licensor has agreed to on
the terms and conditions hereinafter set out.
NOW THIS AGREEMENT WITNESSETH and it is hereby agreed by and between the
parties hereto as follows:
(Question: Draft the operative clause of a leave and license agreement.)
(1) The Licensor hereby grants to the Licensee, permission to use Flat No. 420 in the
Building known as Blaze Towers CHS situate at Parel hereinafter referred to as the
“Licensed Premises” for a period of 3 years with effect from April 1, 2021 subject to
the earlier determination hereof as provided hereinafter. (Refer notes above)
(2) In consideration of the Licensor granting to the Licensee, permission as aforesaid,
the Licensee shall pay to the Licensor, license fee of INR 50,000 per month on the
fifth day of every English calendar month in advance. In addition to the license fee,
the Licensee shall also pay to the Licensor, security deposit of INR 5,00,000 for the
due performance of his obligations hereinafter set out. The deposit shall be
refundable to the Licensee only and only against the Licensee vacating the Licensed
Premises.
(3) In addition to the aforesaid, the Licensee shall also pay the electricity and water bills
payable in respect of the Licensed Premises on the due dates of payment.
(4) It is expressly agreed and declared that the juridical possession of the Licensed
Premises shall always remain with the Licensor; it be understood that the Licensee is
a mere licensee and does not have any right whatsoever under any statute in force in
law save and except the right to use the Licensed Premises as herein provided.
(DEEMING CLAUSE)
(5) The original keys of the Licensed Premises shall always remain with the Licensor
and the duplicate thereof shall be with the Licensee enabling the Licensor to enter
the Licensed Premises for inspection by giving 24 hours prior notice to the Licensee.
(6) The Licensee shall not be entitled to create a sub-license in respect of the Licensed
Premises or create third party rights in respect thereof during the subsistence of this
Agreement.
(7) It is clearly understood that the license hereby created is purely personal to the
Licensee and his family members and to none else.
(8) The Licensee undertakes and covenants to pay the license fee without default and
agrees that in case he commits default in paying the license fee for 2 consecutive
months, he shall be liable to be evicted for breach of his obligations.
(9) The Licensee undertakes that he shall vacate or cause to vacate the Licensed
Premises on the efflux (expiry) of the license period or sooner determination thereof.
In the event of the Licensee failing to vacate the Licensed Premises as provided
herein, he shall be deemed to be a trespasser and shall be liable to pay a sum of INR
500 per day of his illegal continuation in the Licensed Premises.
(10) The Licensee agrees to deliver the Licensed Premises to the Licensor in the same
condition as he entered upon the said premises wear and tear excepted.
(11) This Agreement shall be renewed for a further period of 2 years at the option of the
Licensor alone on fresh terms as to the license fee or on the same terms as to the
license fee.
(12) In the event of the Licensee committing a breach of obligations required to be
performed by him, the Licensor shall be entitled to terminate this agreement by giving
him a notice in writing calling upon him to remedy the breach within 15 days of the
receipt by him of the notice, failing which the license hereunder granted shall stand
terminated forthwith.
IN WITNESS WHEREOF the parties hereto have set their respective hands to these
presents the day and the year first hereinabove written
1. …………………………………
2. …………………………………
Keep the development agreement ready since questions will be asked.
LECTURE DATED MARCH 5, 2021
AGREEMENT
Articles of agreement made at Mumbai the 18th day of February, in the Christian year of
2021 between A of Mumbai, Indian Inhabitant, residing at (whatever property address),
hereinafter referred to as the “Owner” which expression shall, unless repugnant to the
context or meaning thereof, mean and include his heirs, executors and administrators (this
hereinafter clause has been taken from Slide 2 of PPT of Will and testament) Of the One
Part, and
B, a partnership firm constituted under Partnership Act, 1972 and having its office at
(address), hereinafter referred to as the “Developers” (which expression shall, unless
repugnant to the context or meaning thereof, mean and include the partners / partner of the
said partnership business for the time being or the survivors of them and the heirs,
administrators, executors and successors of the last surviving partner of the Other Part.)
Recital:
WHEREAS
(A) Pursuant to the deed of conveyance dated (Date, 1930) executed between Mr. Random
Person and Mr. Grandfather Of A and registered at the office of the Sub registrar of
Assurance, Bombay (ensure that the old name is used if the time period is old) in Book
No. 123 under Serial No. 123 (hereinafter referred to as “Said Conveyance”). Mr.
Random Person sold, conveyed and assured unto Mr. Grandfather Of A all that piece or
parcel of land bearing survey no 123 and C.T.S. No. 789 admeasuring xxx square meters
equivalent to xxx square yards and situate (never write situated) at (address of property)
(hereinafter referred to as “Said Land”);
(B) Pursuant to the permissions obtained by Mr. Grandfather Of A from the Municipal
Corporation of Greater Bombay (hereinafter referred to as “BMC”), sanctioned by BMC,
the grandfather constructed a building comprising ground and 10 storeys (hereinafter
referred to as the “Said Property”) and inducted in the said building 18 tenants in the
building.
(Question: What can happen in a building of a landlord/tenant category? Ans.: Acquisition
and Requisition of flats by the Government (usually for defence purposes))
(C) Mr. Grandfather Of A expired in Bombay on (date), leaving two sons as his only children
and legal heirs.
(D) Mr. Grandfather Of A left a will dated (date) bequeathing the said property to Son 1 to the
exclusion of Son 2 whereby Son 1 inherited the said property.
(E) Son 1 obtained a probate from the HC of judicature of Bombay in respect of the will of his
father, and thus acquired ownership of said property.
(Question: On which document is ownership of property reflected? Ans.: Index II/ Property
Extract Card)
(F) Son 1 died in Bombay on (date) leaving A as his only child and legal heir. Son 1 left a will
dated (date) bequeathing the said property to A absolutely.
(G) The Owner obtained a probate from the HC of judicature of Bombay in respect of the will
of his father, and thus acquired ownership of said property.
(H) Pursuant to the petition filed by the Owner in the High Court of Bombay, he was
appointed the Guardian ad litem of his two minor children kid 1 and kid 2, aged 10 and 8
respectively, and pursuant thereto, he has agreed to deposit the share of two minors in
the Honourable Bombay High Court.
(Question: What is the name of authority under the Urban Land Ceiling Act? Ans.:
Competent Authority)
(I) The Owner does not have the requisite expertise and the financial wherewithal to
develop the property as the said property is in need of urgent repair, and therefore needs
to be redeveloped.
(J) The Developer has represented to the Owner that he has the experience and expertise
in developing properties, and also the monetary power to develop the properties.
(K) Relying on the representations of the Developer, the Owner has agreed to grant to the
developer, development rights (Right of the owner to allow the developer to
develop) to the developers on the Terms and Conditions hereinafter set out:
(Testatum Clause:)
NOW THIS AGREEMENT WITNESSETH and it is hereby agreed by and between the
parties hereto as follows:
(1) The owner hereby grants to the developer, the right and the authority to develop all that
piece or parcel of land bearing Survey No. 123 and C.T.S. No. 789 admeasuring xxx
square meters situate at (address) together with the buildings standing thereon known as
Kash Kash Mahal, more particularly described in the schedule hereunder written
(hereinafter referred to as the “said property'' and delineated on the plan thereof hereto
annexed and shown thereon surrounded by blue coloured boundary lines.
(2) The developer shall at their own cost and expenses develop the property by utilizing the
entire available Floor Space Index (FSI) originating from the land and Transferable
Development Rights (TDR) which may be permitted to be loaded and incidental to the
FSI already available by payment of premium or otherwise howsoever under the
applicable laws governing development of properties in the city of Mumbai.
(3) The parties hereto confirm that the arrangement and the agreement recorded herein is
subject to the verification and examination of the title to the satisfaction of M/s.
Developer’s Lawyer & Co.
(4) In consideration of the owner granting development rights to the developers, the
developer shall pay to the owner, an aggregate consideration of Rs. 20 crore (Rupees
Twenty Crores only), which shall be paid in the manner following:
(a) A sum of Rs. 2 crore as earnest receipt whereof the owner doth hereby admit and
acknowledge;
(b) A sum of Rs. 3 crore on the owner causing to certify the title of the property to the
satisfaction of M/s. Developer’s Lawyer & Co.;
(c) A sum of Rs. 5 crore on the tenants in the building, vacating their respective
premises on the developers providing temporary alternate accommodations to the
tenants at the cost and expense of the developer;
(d) A sum of Rs. 7 crore on the developers being permitted to enter the property for the
purpose of demolishing the building and constructing on the land a new building or
buildings on the said land together with a comprehensive power of attorney to be
executed by the owner in favour of the developers. It is expressly agreed by and
between the parties hereto that the developer shall be permitted to enter the property
only as a licensee with limited access of ingress (inside) and egress (outside) to the
developer and for his employees, vehicles and agents for the purpose of the
construction of the new building or buildings;
(e) And the balance of Rs. 3 crore against the owner executing the conveyance in favour
of the co-operative society, that shall be formed of the purchasers of the new flats in
the new society and the tenants who will be rehabilitated in the new building or
buildings. (Below part was dictated on February 20, 2021)
(f) In addition to the aforesaid consideration, the Developers undertake to allot 2 flats
admeasuring __ square feet each, in the newly developed building, to the Owner.
(5) The Developers agree and undertake to rehabilitate the tenants in Wing B (means Wing
A - all new purchasers, Wing B - allotment to tenants) by allotting to them flats
admeasuring ___ square feet each without any cost whatsoever (developer agrees to
give flats to the tenants because it's their right.)
(Question: Caveat emptor in a property transaction equals to ___ (Ans.: as is - where is))
(6) (I) The development rights granted herein by the Owner to the Developers are on as-is
where-is basis and the Developer shall develop the Property at their own cost and
expenses by demolishing the existing structure and constructing thereon, a new building
comprising podium and ___ storeys in accordance with the plans approved by BMC and
the town-planning authorities.
(II) It is agreed that the Developer shall be entitled to avail of the benefits and
advantages of the development rules in force in the city of Mumbai under which the
Property shall be developed and to sell the premises in the new building in accordance
with the provisions of the Maharashtra Ownership Flats Act and to receive and realise
the purchase consideration in respect of the sale of the flats and transfer the new
building in favour of the co-operative society of the purchasers of the premises; and to do
all such acts, deeds and things in respect thereof, and in particular:
(a) (Keep in mind what are the things that a developer has to do) Prepare the layout
for the primary development of the Property and to have the same sanctioned by
BMC and other local authorities.
(b) Prepare the plans of the proposed building to be constructed on the Property in
accordance with the rules and regulations of the applicable laws, BMC and the
town-planning authority (surveyor office etc.). And to submit the said plans to the
concerned authorities for their approval and to sign and execute all writings,
applications and undertakings as may be required or necessary in connection with
the approval and sanction of the plans.
(c) To appoint architects, surveyors, engineers, contractors and labour force required
for the development of the Property. (Developer has to register the names of
engineers, architects, surveyors with BMC - Because BMC won’t allow developer to
appoint anyone unless that person is on its approved list)
(d) Make applications to the concerned authorities for obtaining water and electricity
connections and for permits or quota for cement, steel and other controlled building
material. (permits and quota isn’t relevant in today’s time - only relevant when
declared by the government as a controlled item being an essential commodity).
(e) Make necessary applications to modify and revise the plans and the specifications
already submitted to BMC and other authorities to meet a contingency.
(f) To accept service of any writs, summons, or other legal process and to represent
the Owner in any judicial or quasi-judicial tribunal and appear before BMC,
Tehsildar, Talathi, Collector, for the purpose of any matter relating to the
development of the property and if necessary, file suits or other proceedings in any
court of competent jurisdiction and for the said purpose to sign, execute, verify and
declare applications, plaints, writs, defences, written statements, vakalatnamas,
documents, affidavits and all other necessary writings. (legal power given to
developer so that owner is not troubled)
(g) Subject to the provisions of Clause __ hereof, enter upon the Property to demolish
the existing structure and to construct a new building thereon and enter into
agreements for sale or allotment of flats in the new building with the purchasers or
allottees of the flats, it be expressly agreed and declared that the Developer shall
be entitled to enter the Property for the purpose of development only and upon the
happening of the contingency mentioned in Clause ___ hereof. (Co-relate with
Clause 4 - Payment of INR 7 crore is necessary to achieve this right.)
(Question: Easements Act gives developers the right to develop the property.)
(7) The Developers shall develop the Property on their own account and liability and shall be
responsible and liable to make requisite payment to the Government, BMC and local
authorities, the engineers, the contractors, the workmen engaged in the development of
the Property. The Developer alone shall be responsible and liable to all workmen,
engineers and labourers for any accident or death or any injury caused to them during
the development process.
(8) Upon the payment of the sum of Rs. 7 crores to the owner, the owner shall grant to the
Developer the license under the Indian Easement Act, 1882 to have the right of ingress
and egress, in and from the Property together with the architect, engineers, contractors,
labourers and workmen to develop the Property. (Below part was dictated on February
25, 2021)
(9) The Owner declares that he has not and nor shall he enter into any arrangement or
agreement with any person or any party in respect of the Property, and that, his
agreement with the Developers is valid, binding, and subsisting and shall not be revoked
or rescinded at any point of time by him except on the ground of non payment of the
consideration.
(10) The Owner covenants with the Developers as follows:
(a) He has absolute right to deal with the property, and no one other than himself has
any claim to or right in said property and that he has full right to grant
development rights to the developers. (This is called Covenant of Title)
(b) The Property vests in him and that he has not entered into any agreement with
any other persons except the developers and that he has not created any
encumbrances or any third party rights in respect of the Property or accepted
earnest money from any party except the Developers and that within a period of
three months he shall cause his lawyers to produce the certificate of title in
respect of the property. (This is called Covenant against Encumbrance)
(c) He has not received any notice of acquisition or requisition in relation to the
Property from the Central or State Government and that no suit or any
proceeding is pending in any court or tribunal or authority of competent
jurisdiction.
(d) He shall execute all necessary documents to perfect the title in respect of the
Property in favour of the Developers, and shall, at his own costs and expenses,
cause to remove all outstanding estates and all defects in the title such as claims
by way of occupancy, sale, exchange, mortgage, gift, trust, inheritance, adverse
possession, lease, lien or otherwise.
(Question: Why is the word occupancy and inheritance used in the above
clause? Ans.: Occupancy - To combat a situation where a tenant might have
sub-tenanted the flat / house or apartment. Occupant in this case, is a person
who has no right to be there. Inheritance - Because the person who inherits will
become an occupant and the occupancy logic above will apply to this case.)
(11) The Developers shall be entitled to all muniments (documents) of title relating to the
property which are in the possession of the Owner.
(12) The Developers undertake and covenant as follows:
(a) They shall pay the consideration in the manner set out in Clause 4 hereof and
shall allot 2 flats to the owner as agreed;
(b) He shall complete the development and construction of the new building within 24
months from obtaining the commencement certificate from BMC.
(13) Stamp duty shall be borne and paid by the developers alone.
(14) This agreement shall be enforceable in courts in Mumbai alone.
(15) In case of any dispute or difference of opinion, as to the interpretation of this
agreement the same shall be referred to the arbitration of a single arbitrator which shall
be conducted in accordance with the provisions of the Arbitration and Conciliation Act,
1996. (More arbitrators mean more money to be paid. Hence, single arbitrator.)
IN WITNESS WHEREOF the parties hereto have set their respective hands to these
presents the day and the year first hereinabove written
This Indenture of Conveyance made at Mumbai the _ day of _ in the Christian Year 2021
between A of Mumbai, Indian inhabitant residing at _ hereinafter referred to as the “Owner”
which expression shall, unless repugnant to the context or meaning thereof, mean and
include his heirs, executors, administrators and successors of the First Part;
B, a partnership firm constituted under Partnership Act, 1972 and having its office at
(address), hereinafter referred to as the “Developer”, which expression shall, unless
repugnant to the context or meaning thereof, mean and include the partners / partner of the
said partnership business for the time being or the survivors of them and the heirs,
administrators, executors and successors of the last surviving partner of the Second Part;
and
WHEREAS
(A) A is the absolute owner of land bearing survey no 123 and C.T.S. No. 789
admeasuring xxx square meters equivalent to xxx square yards and the building
standing thereon comprising ground and 10 storeys and Wings A and Wing B,
(hereinafter referred to as the “Said Property”).
(B) Pursuant to the Development Agreement dated _ executed by and between the
Owner on the one hand and the Developer on the other, and registered at the office
of the Sub registrar of Assurance, Bombay in Book No. 123 under Serial No. 123, the
Owner granted to the Developer, development rights in respect of the Said Property,
on the terms and conditions set out in the said Development Agreement (hereinafter
referred to as the “Development Agreement”) and the Power of Attorney dated _.
(write what the developer has done)
(C) (i) Pursuant to the rights granted by the Owner in the aforecited Development
Agreement and the Power of Attorney, the Developer prepared and submitted plans
and specifications to the Municipal Corporation of Greater Mumbai (hereinafter
referred to as “BMC”) and other planning authorities and sought their permissions to
develop the Said Property.
(ii) The Developer also caused the tenants to vacate their respective premises and
put them in temporary alternate accommodation.
(iii) Upon payment of the sum of INR 7 crore, the Developer entered the Said
Property as a licensee for the purpose of developing the same and develop the Said
Property in accordance with the permissions and the sanctions granted by BMC and
other planning authorities by constructing a new building of Wing A and Wing B,
comprising ground, podium and 10 storeys.
(iv) The Developer executed agreements with the tenants for allotting permanent
alternate accommodation in Wing B of the new building, thus rehabilitating them in
Wing B of the new building and executing agreements for sale of the new premises in
Wing A of the new building to accommodate the purchasers of the new premises.
(D) The Developer caused to constitute and register a co-operative society named Jai Ho
CHS Limited comprising the new purchasers and the tenants.
(E) At the request of the Developer, the Owner has agreed to convey the said land and
new building to the society, the Purchaser herein, upon the Developer paying to the
Owner, the sum of INR 3 crore on the terms and conditions hereinafter set out.
(1) In consideration of the sum of INR 3 crore, paid by the Developer to the Owner,
receipt whereof, the Owner doth hereby admit and acknowledge, and in pursuance of
the Developer having completed the development of the Said Property by
constructing a new building comprising of Wing A and Wing B, along with ground,
podium and 10 storeys (hereinafter referred to as “Developed Property”), more
particularly described in the Schedule hereunder written and delineated on the plan
hereto annexed and shown thereon surrounded by blue coloured boundary lines. The
Owner doth hereby CONVEY, ASSURE AND GRANT UNTO THE PURCHASER
TOGETHER WITH all the things permanently attached thereto and standing thereon
and all privileges, rights, easements and appurtenances whatsoever in the said land
and the building appertaining thereto.
(Question: Draft the All-Estate Clause.)
(2) ALL THE ESTATE, right, title, interest, possession, benefit, profits, claim and demand
whatsoever at law, or otherwise of the Owner to the Said Property.
(Question: Draft the Habendum Clause.)
(3) AND TO HAVE AND TO HOLD the same unto and to the use of the Purchaser
absolutely and forever SUBJECT TO the payment of all taxes, rates, property taxes,
assessments, dues and duties now payable and chargeable from time to time and at
all times to the Government, BMC and all other local authorities.
(Question: There will be 2 questions on covenants in the DPC paper, so it is very
important.)
(Refer the covenants PPT; the word vendor has been replaced with Owner)
(Question: Draft a Covenant of Good Title.)
(4) The Owner now has in himself good right and full power to convey and transfer by
way of sale the said piece of land, and other the premises hereby conveyed or
intended so to be unto and to the use of the Purchaser in the manner aforesaid.
(Question: We will be given this covenant with blanks. Questions will be fill in the blanks
and not that we need to draft the entire thing.)
(Question: Draft a Covenant Against Encumbrance.)
(In Covenant 5 - The Owner is giving a solemn assurance to the Society in the flats and to
the tenants that the Owner and his heirs will not do anything and anyone who wants to claim
or demand from the Owner and his heirs will not do anything. If someone does, then the
Owner will be responsible for it.)
(5) The Purchaser may, from time to time and at all times hereafter peaceably and
quietly enter upon, occupy, or possess and enjoy the said land. and premises hereby
conveyed with their appurtenances, and receive the rents, issues and profits thereof
and every part thereof for his own use and benefit without any suit, lawful eviction or
interruption, claim and demand whatsoever from or by him the Owner or his heirs or
any of them or by any person or persons claiming or to claim, from, under or in trust
for him or any of them.
(Question: Draft a Covenant Against Encumbrance - Continuation of Encumbrances
covenant, no separate title)
(Significance of Covenant 6 - If at all, prior to the Owner there were defects of title, for or
from the Owner himself, then the Owner shall hold the Purchasers exonerated and that they
will have free and clear title even if the Purchaser get these defects, these are negated.
Further, assuming without admitting, if there are defects then these will be indemnified by the
Owner. (Carte Blanche))
(6) The Purchaser shall hold the said land and premises free and clear and freely and
clearly and absolutely exonerated, and forever released and discharged or otherwise
by the Owner and well and sufficiently saved, defended, kept harmless and
indemnified of, from and against all former and other estates, titles, charges and
encumbrances whatsoever made occasioned and suffered by the Owner or by any
other person or persons claiming or to claim by, from, under or in trust for him.
(Question: Draft a Covenant of Further Assurances)
(Everything necessary to perfect the title of the Purchaser shall be done by the Owner or the
legal heirs, as the case may be, or his lawyers, attorneys, etc. If there is any litigation, the
Owner and every person related to him will testify on behalf of the Purchaser.)
(7) The Owner and all persons having or claiming any estate, right, title or interest in the
said land, and premises hereby conveyed or any part thereof by, from, under or in
trust for the Owner or his heirs, executors, administrators or any of them shall and
will from time to time and at all times hereafter at the request and costs of the
Purchaser do and execute and cause to be done and executed all such further and
other lawful acts, deeds, things, whatsoever for better and more perfectly and
absolutely granting the said land, and premises and every part thereof hereby
conveyed unto and to the use of the Purchaser in manner aforesaid as by the
Purchaser, his heirs, executors or administrators and assigns shall be reasonably
required.
IN WITNESS WHEREOF the parties have set their respective hands to these presents the
day and the year first hereinabove mentioned.
NOTE:
- This deed of conveyance also has to be mandatorily registered. Without this, the
society will not get a good title.
- The following things happen on registration:
- Registration.
- Index II - Property Extract Card - In this, after registration, the name of the
Owner will be removed and the name of society will be included. Each and
every agreement executed by the Purchasers of the property will also be
registered (if it has been registered) and their names will also be included in
the records of the sub-registrar of assurances.
LECTURE DATED MARCH 12, 2021
Match the following (to the word that is closest to the word on the left hand side):
Deed of Gift (a) Can be executed by the constituted attorney of the donor.
(b) Related
(b) No
Does a deed of gift transfer interest in the property to the donee? (a) Yes
(b) No
- A deed of gift is not required to contain all the covenants except that the donor cannot
gift what does not belong to him. The only covenant in a gift deed is that the owner has
the absolute right to give that property as a gift.
Question: Draft a deed of gift.
This deed of gift, made at Mumbai, the 12th day of March in the Christian year of 2021
between H. D. Pithawawala residing at _____ (hereinafter referred to as the “Donor” which
expression shall, unless repugnant to the context or meaning thereof, mean and include his
heirs, executors, administrators and successors of the One Part); and
WHEREAS
(A) The Donor is a member of the Kash Kash Housing Society registered under the act, and
as such holds share number bearing _____ to _____ both inclusive and as such
member, has right title and interest in Flat No. __ in the Building known as __ situate at
__ hereinafter cumulatively referred to as the “Premises”.
(B) The Donor has absolute right to give away or dispose of the Premises.
(C) The Donor is desirous of transferring his interest in the Premises to the Donee out of
natural love and affection he has for her, absolutely free of cost, on the terms and
conditions hereinafter set out.
NOW THIS DEED WITNESSETH AND IT IS HEREBY AGREED BY AND BETWEEN THE
PARTIES HERETO AS FOLLOWS:
(1) Pursuant to the desire which the Donor has, the Donor doth hereby convey, transfer
and assure unto the Donee (a) His membership rights in the society; (b) His
entitlement to all the funds lying to his credit in the society; and (c) The in Flat No. __
in the Building known as __ situate at __, more particularly described in the Schedule
hereunder written, hereinafter mentioned free of cost, as and by way of gift out of the
natural love and affection which he has towards the Donee together with all the rights
and privileges appurtenant to the Premises and to have and to hold the same for
herself at all times and from time to time subject to the payment by her of the taxes
and outgoings levied by the Government, Municipal Corporation of Greater Mumbai
and the society.
(2) The Donor doth hereby covenant with the Donee as follows:
(a) He has absolute right, title and interest in the Premises and has full power to
give the same as and by way of gift, without any claim or demand from any
person claiming from or under or in trust from him in the Premises hereby
transferred, as and by way of gift.
(b) The Donee shall be entitled to enter upon, possess and peaceably and
peacefully enjoy and use the Premises without any interruption or impediment
from any person and shall also be entitled to receive the profits, license fee,
issues and other benefits without any lawful eviction, suit by the Donor or his
heirs and successors or any persons purporting to claim from or under him.
(c) The Premises are free from all encumbrances and there is no charge or
mortgage or lien or right of exchange between the donor and any person and
that the premises have good and marketable title.
(d) The donor and his heirs and successors shall, whenever necessary, execute
all necessary deeds and docs as may require to be executed to perfect the
title of the Donee.
(3) The Donee undertakes and covenants to pay, at all times, the society outgoings and
taxes cess and levies imposed by the Government, Municipal Corporation of Greater
Mumbai and the society from time to time.
(4) The Donee has executed these presents in acceptance of the gift made by the Donor
in her favour.
IN WITNESS WHEREOF the Donor and Donee have executed this deed of gift the day and
the year first hereinabove written
SCHEDULE
SIGNED
Question: Depositing title deeds to property and creating a charge on the property is known
as ___ mortgage. (Ans.: )
Question: The word “possession” is an anathema to a lease. (True or False) (Ans.: False)
Question: The corpus that remains with the owner in case of a lease is called ___ ___
(Ans.: Reversionary right - Right of reversal)
The lessee has options, so does the lessor under the reversionary rights. These are:
(a) Option to renew or not to renew the lease;
(b) Right to ask for purchase of the reversionary right - Available to the lessee.
AGREEMENT OF LEASE
Articles of agreement made on the 13th day of March in the Christian Year 2021 between
Jaidev Mehrotra, Indian inhabitant residing at __ (hereinafter referred to as the “Lessor”
which expression shall, unless repugnant to the context or meaning thereof, mean and
include his heirs, executors, administrators and successors) of the One Part; and
WHEREAS
(A) The Lessor is the absolute owner of and seized and possessed of all that piece of
parcel of land bearing CTS no. __ survey no. __ admeasuring __ sq meters
equivalent to __ yards situate at __ delineated on the plan hereto annexed and
shown there on surrounded by RED coloured boundary line and more particularly
described in the Schedule hereunder written (hereinafter referred to as the said
“Piece of Land”);
(B) At the request of the Lessee, the Lessor has agreed to grant to the Lessee, lease of
the said Piece of Land, on leasehold basis for a period of 99 years on the terms and
conditions hereinafter set out.
Now this agreement witnesseth and it is hereby agreed by and between the parties hereto
as follows:
(1) The Lessor agrees to demise unto the lessee all that piece of parcel of land bearing
CTS no. __ survey no. __ admeasuring __ sq meters equivalent to __ yards situate
at __ delineated on the plan hereto annexed and shown there on surrounded by RED
coloured boundary line and more particularly described in the Schedule hereunder
written, hereinafter referred to as the “Leased Land”, for a period of 99 years
commencing from the date of the execution of the deed of lease.
(2) In consideration of the Lessor granting to the Lessee, demise of the Leased Land as
aforesaid, the Lessee agrees to pay to the Lessor a premium / ground rent of INR 10
lakhs and a monthly rent of INR __ per month payable on the 10th day of each
English calendar month. The Lessee has paid to the Lessor the sum of INR __ being
the premium agreed to be paid on the execution hereof receipt whereof, the Lessor
doth hereby admit and acknowledge.
(3) The Lessor hereby agrees with the Lessee as follows:
(a) The Lessee shall have the right to build upon building / buildings by availing
of the Floor Space Index (FSI) available in respect of the Leased Land by
obtaining the requisite permissions and sanctions from the Municipal
Corporation of Greater Mumbai (hereinafter referred to as “BMC”) and other
planning authorities;
(b) Upon the completion of the building, the Lessee shall be entitled to derive and
appropriate to himself, the profits, benefits and rents that he may obtain from
the user of the building from time to time, subject however, to the payment by
the Lessee, of all taxes, cess, rates and other levies that may be imposed by
the Government, BMC and other local bodies on the Leased Land;
(c) The Lessee undertakes to comply with all applicable laws and not commit a
breach thereof whilst and after constructing and completing the said building
on the Leased Land;
(d) The building shall be constructed and completed by the Lessee at his own
cost and expenses, without recourse to the Lessor.
(4) (a) The Lessor covenants that he has absolute right of ownership of the Leased Land
and that no other person other than himself has any claim or demand or right in
respect thereof;
(b) So long as the Lessee pays the rent to the Lessor without default, the Lessee
shall be entitled to enter upon and possess the Leased Land for the purpose
aforesaid without any interruption or hindrance from the Lessor or any one claiming
from, under or in trust or purporting to claim from, under or in trust for the Lessor.
(5) It is expressly agreed and declared that the Lessee and his successors in title shall
have the option to purchase the reversionary right of the Lessor in the Leased Land
after a period of 40 years from the date of the execution of the deed of lease on such
terms and conditions mutually agreed by and between the parties hereto, which shall
not be less than terms less favourable than the market value then prevailing, at the
time of the purchase of the reversionary right.
(6) Upon the completion of the building, and obtaining the completion and occupation
certificates from BMC and other planning authorities, the Lessee shall be entitled to
call upon the Lessor and his successors in title to execute the deed of lease in favour
of the Lessee or his nominee or the co-operative society or the condominium that
may be formed of the constituents of the purchasers of the premises in the said
building.
(7) Stamp duty and registration fee in respect of these presents and the deed of lease
shall be paid by the Lessee alone.
(8) In the event of a dire necessity, the Lessee, not being in a position to complete the
building on his own, he may do so by assigning his right to any person or persons
with the prior consent of the Lessor, which consent shall not be withheld by the
Lessor.
(9) If the Lessee fails to pay the rent for a continuous period of 3 months, the Lessor
shall be entitled to terminate this agreement and the benefits thereof by giving to the
Lessee, a notice in writing, calling upon him to remedy the breach within 15 days of
the date of receipt of this notice, failing which, this agreement shall stand ipso facto
terminated.
LECTURE DATED MARCH 18, 2021
Question: Is a lease in perpetuity, a lease at all? If yes, then why, if not, then why not?
(Section 105 - 108 TOPA)
versus
Let all parties concerned attend before the judge in chambers on the _ day of _ 2021 at 11 o’
clock in the forenoon at the hearing of the application on the part of the Plaintiff that
judgement be entered for the Plaintiff in this suit against the Defendant for INR __ as set out
in the plaint herein and for interests and costs.
Dated the _ day of _ 2021
This summons has been issued at the instance of Mangaldas & Co., advocates for the
plaintiff.
sd/-
Mihika Shah
To:
(Name of Defendant)
Question: Notice of motion
Question: What relief will you ask at this stage in the following circumstances?
versus
TAKE NOTICE THAT this court will be moved before the honourable court presided over by
Mr. Justice __ on the _ day of _ 2021 at 11 o’ clock in the forenoon for an order that the
order which the Plaintiff requires at (interim / ad-interim stage) and take further notice that
leave to give notice for the day and the hour specified has been obtained from the
Honourable Court.
Dated _ day of _ 2021
This notice of motion has been issued at the instance of Mangaldas & Co., advocates for the
plaintiff.
sd/-
Mihika Shah
To:
(Name of Defendant)
Question: What relief will you ask at this stage in the following circumstances:
The following prayers need to be put:
(a)
Question: Chamber summons
versus
Let all parties concerned attend before the Judge in Chambers on the _ day of _ of 2021 in
the forenoon for the hearing of an application on the part of the Plaintiff for: (This is the
prayer)
(a)
(b)
This Chamber Summons has been issued at the instance of Mangaldas & Co., advocates for
the plaintiff.
sd/-
Mihika Shah
To:
(Name of Defendant)
Question: Why “Judge in Chambers” - Many years ago when matters were small in number,
the Judge who was assigned the assignment of Chamber Summons would sit in his
chamber and take the matters. That's why “Judge in Chambers”. Now, matters have
increased and that's why the courtroom is preferred.
Question: A notice of motion, chamber summons, summons for judgement, is a
interlocutory/interim proceeding (Ans.: Interlocutory or Interim)
Question: Can a deed of conveyance be executed unilaterally? (Ans.: In the olden days,
conveyance used to be executed only by the seller or the vendor because no need was felt
that the purchaser needed to sign the conveyance. Nowadays, we have the purchaser also
sign the conveyance, because we have covenants that are to be observed and followed by
the purchaser.)
Question: Can a deed of lease be executed unilaterally? (Ans.: Yes it can be executed only
by the lessor and its validity is not affected if it is signed by the lessee.)
DEED OF LEASE
This deed made on the 18th day of March in the Christian Year 2021 between Jaidev
Mehrotra, Indian inhabitant residing at __ (hereinafter referred to as the “Lessor” which
expression shall, unless repugnant to the context or meaning thereof, mean and include his
heirs, executors, administrators and successors) of the One Part; and
WHEREAS
(A) The Lessor is the owner of and absolutely seized and possessed of all that piece of
parcel of land bearing CTS no. __ survey no. __ admeasuring __ sq meters
equivalent to __ yards situate at __ (hereinafter referred to as the said “Land”)
delineated on the plan hereto annexed and shown there on surrounded by RED
coloured boundary line and more particularly described in the First Schedule
hereunder written;
(B) Pursuant to the Agreement to lease dated March 13, 2020, the Lessor agreed to
grant to the Lessee, leasehold rights in respect of the said Land on the premium and
rent and the terms and conditions mentioned in the said Agreement to lease for a
period of 99 years;
(C) Pursuant to the rights granted in the Agreement to lease, the Lessee constructed on
the said Land, a building comprising ground and 7 storeys in accordance with the
permission granted in that behalf by the Municipal Corporation of Greater Mumbai
(hereinafter referred to as “BMC”) and other local and town planning authorities;
(D) The Lessee has obtained the completion and occupation certificate issued by BMC
and has now requested the Lessor to execute this deed of lease on the terms and
conditions hereinafter set out;
Now this agreement witnesseth and it is hereby agreed by and between the parties hereto
as follows:
(1) In pursuance of the said Agreement to lease, and in consideration of the premium
already deposited with the Lessor and the monthly rent agreed to be paid and in
consideration of the covenants, undertakings and obligations agreed to be performed
and observed, the Lessor doth hereby demise unto the Lessee for a period of 99
years all that piece of parcel of land bearing CTS no. __ survey no. __ admeasuring
__ sq meters equivalent to __ yards situate at __ and the building constructed
thereon comprising ground and 7 storeys admeasuring plinth area of __ square yards
and the Land admeasuring __ square yards situate at __ and delineated on the plan
hereto annexed and shown there on surrounded by RED coloured boundary line and
the building shown by BLUE stripes and more particularly described in the Second
Schedule hereunder written (hereinafter cumulatively referred to as the said
“Demised Property”).
(2) To hold the Demised Property unto the Lessee and his heirs, executors,
administrators and successors for a period of 99 years commencing from the 18th
day of March 2021 but subject to the earlier determination thereof as hereinafter
provided and yielding and paying therefore during the period of the lease monthly
rent of INR _ on the 10th day of each English calendar month and the first of such
rent payable on the execution of this deed for the first quarter ending 10th of June
2021 and thereafter every English calendar month regularly without default.
(3) The Lessee, for himself and his heirs, executors, administrators and successors to
the intent and purpose that the obligations, undertakings and covenants herein
contained, shall continue throughout the term of the lease or its earlier determination,
covenants as under:
(a) To pay the monthly rent dutifully and without default on the 10th day of every
English calendar month and in the event of his failure to do so, pay interest
thereon at the rate of __ per cent per annum although the payment of interest
by the Lessee shall not disentitle the Lessor from availing of all remedies he
has in law or as mentioned herein;
(b) To bear and pay the existing and all future rates, taxes, cess and levies that
may be imposed by the Government - Central and State, BMC and other local
bodies that may become payable from time to time and at all times, on the
said Land and the building, and the buildings that may be erected on the said
Land at any point of time and to keep the Lessor and his estate and effects
indemnified and kept defended against such payment;
(c) To comply with and observe all applicable laws in force from time to time and
at all times and the policies, regulations and rules (development control rules
enforced by government) that may be made applicable by the Government
and the local authorities from time to time;
(d) To keep the said land and the building or buildings in good condition and
tenantable repair and maintenance at all times;
(e) Not to allow or cause to allow the said building and the future buildings to be
used for any purpose other than for residential uses;
(f) Not to sell or dispose off any earth, gravel, and sand from the Demised Land
and not to excavate the same except for the purpose of the construction of
the building or as may be necessary for a genuine building purpose; (This
clause has come from Victorian times and is put only to ensure Lessee
doesn't do anything foolish)
(g) Not to construct additional building or buildings on the said Land without the
written permission of the Lessor.
(4) The Lessor doth hereby covenant with the Lessee as follows:
(a) He has, in himself, good right and title and full power to demise unto the
Lessee, the Demised Property.
(b) He shall pay the land revenue, taxes, cess and other levies payable to the
Government and the local authorities.
(c) Upon the Lessee paying the monthly rent and the premium, and observing
the obligations to be performed by him, the Lessee shall quietly and
peaceably hold and enjoy the said Land and the building standing thereon
without any disturbance, hindrance claim or demand whatsoever by the
Lessor and anyone claiming by, of, under or purporting to claim from the
Lessor.
(5) It is expressly agreed and declared that the Demised Property has been demised on
the express condition that the Lessee shall pay the rent without default, whether
demanded or not and any default in the payment of the rent shall entitle the Lessor to
terminate the lease herein created.
(6) It is expressly agreed that after the expiry of 99 years, the Lessee shall be entitled to
exercise an option to purchase the reversionary right of the Lessor in the land and
the building at a price not exceeding INR __ crores subject to a minimum of INR __
crores.
(7) The Lessee shall not be entitled to assign, mortgage the leasehold right to any
person or persons without the written permission of the Lessor which permission
shall not be unreasonably withheld.
(8) Subject to the provisions of paragraph 6 hereof, on the expiry of the lease herein
granted by efflux of time, the demised land and the building shall revert back and
vest in the Lessor.
(9) Stamp duty and registration fees on these presents shall be borne and paid by the
Lessee alone.
IN WITNESS WHEREOF the Lessor and Lessee have executed this deed of lease the day
and the year first hereinabove written
SCHEDULE
SIGNED
LECTURE DATED MARCH 25, 2021
(c) Possessory
(e) Enforceable
“Religion is an opium.”
Possibilities in a partnership:
(A) Constitution of a partnership - Deed of Partnership
(B) Retirement of a partner
(C) Dissolution of partnership
Question: Draft the operative clause of the partnership deed. (Clause 1 of the testatum
clause of the deed of partnership)
I’m asking dad to show me his partnership deed for his construction firm
Builders and developers might enter into partnership deeds for specific purposes (Projectile
partnerships). These are not businesses at will.
Deed of Partnership
This Deed of Partnership made at Mumbai, the 25th day of March in the Christian Year 2021
made between A, of Mumbai, Indian inhabitant residing at __ (hereinafter referred to as “A”
which expression shall, unless repugnant to the context or meaning thereof, mean and
include his heirs, executors, administrators and successors) of the First Part;
B of Mumbai, Indian inhabitant, residing at _____ (hereinafter referred to as the “B” which
expression shall, unless repugnant to the context or meaning thereof, mean and include her
heirs, executors, administrators and successors) of the Second Part; and
C, Indian inhabitant, residing at _____ (hereinafter referred to as the “C” which expression
shall, unless repugnant to the context or meaning thereof, mean and include her heirs,
executors, administrators and successors) of the Third Part.
WHEREAS
(A) A, B, and C (hereinafter collectively referred to as the “Partners”) are technocrats and
have the requisite expertise in the field of technology.
(B) The Partners have known each other for a considerable length of time and are
therefore desirous of carrying on in partnership, the business of __ on the terms and
conditions hereinafter set out.
Now this deed witnesseth and it is hereby agreed by and between the parties hereto as
follows:
IN WITNESS WHEREOF the Partners have executed this deed of partnership the day and
the year first hereinabove written
Articles of agreement made at Mumbai the 18th day of February, in the Christian year of
2021 between A of Mumbai, Indian Inhabitant, residing at (whatever property address), (this
hereinafter clause has been taken from Slide 2 of PPT of Will and testament) hereinafter
referred to as owner, which expression shall unless …. (do not write successors in this case)
Of the One Part, and
B, a partnership firm constituted under Partnership Act, 1972 and having its office at
(address), hereinafter referred to as the “Developers” (which expression shall, unless
repugnant to the context or meaning thereof, mean and include the partners / partner of the
said partnership business for the time being or the survivors of them and the heirs,
administrators, executors and successors of the last surviving partner of the Other Part.)
Recital:
WHEREAS
(A) Pursuant to the deed of conveyance dated (Date, 1930) executed between Mr. Random
Person and Mr. Grandfather Of A and registered at the office of the Sub registrar of
Assurance, Bombay (ensure that the old name is used if the time period is old) in Book
No. 123 under Serial No. 123 (hereinafter referred to as “Said Conveyance”). Mr.
Random Person sold, conveyed and assured unto Mr. Grandfather Of A all that piece or
parcel of land bearing survey no 123 and C.T.S. No. 789 admeasuring xxx square meters
equivalent to xxx square yards and situate (never write situated) at (address of property)
(hereinafter referred to as “Said Land”);
(B) Pursuant to the permissions obtained by Mr. Grandfather Of A from the Municipal
Corporation of Greater Bombay (hereinafter referred to as “BMC”), sanctioned by BMC,
the grandfather constructed a building comprising ground and 10 storeys (hereinafter
referred to as the “Said Property”) and inducted in the said building 18 tenants in the
building.
(Question: What can happen in a building of a landlord/tenant category? Ans.: Acquisition
and Requisition of flats by the Government (usually for defence purposes))
(C) Mr. Grandfather Of A expired in Bombay on (date), leaving two sons as his only children
and legal heirs.
(D) Mr. Grandfather Of A left a will dated (date) bequeathing the said property to Son 1 to the
exclusion of Son 2 whereby Son 1 inherited the said property.
(E) Son 1 obtained a probate from the HC of judicature of Bombay in respect of the will of his
father, and thus acquired ownership of said property.
(Question: On which document is ownership of property reflected? Ans.: Index II/ Property
Extract Card)
(F) Son 1 died in Bombay on (date) leaving A as his only child and legal heir. Son 1 left a will
dated (date) bequeathing the said property to A absolutely.
(G) The Owner obtained a probate from the HC of judicature of Bombay in respect of the will
of his father, and thus acquired ownership of said property.
(H) Pursuant to the petition filed by the Owner in the High Court of Bombay, he was
appointed the Guardian ad litem of his two minor children kid 1 and kid 2, aged 10 and 8
respectively, and pursuant thereto, he has agreed to deposit the share of two minors in
the Honourable Bombay High Court.
(Question: What is the name of authority under the Urban Land Ceiling Act? Ans.:
Competent Authority)
(I) The Owner does not have the requisite expertise and the financial wherewithal to
develop the property as the said property is in need of urgent repair, and therefore needs
to be redeveloped.
(J) The Developer has represented to the Owner that he has the experience and expertise
in developing properties, and also the monetary power to develop the properties.
(K) Relying on the representations of the Developer, the Owner has agreed to grant to the
developer, development rights (Right of the owner to allow the developer to
develop) to the developers on the Terms and Conditions hereinafter set out:
(Testatum Clause:)
NOW THIS AGREEMENT WITNESSETH and it is hereby agreed by and between the
parties hereto as follows:
(1) The owner hereby grants to the developer, the right and the authority to develop all that
piece or parcel of land bearing Survey No. 123 and C.T.S. No. 789 admeasuring xxx
square meters situate at (address) together with the buildings standing thereon known as
Kash Kash Mahal, more particularly described in the schedule hereunder written
(hereinafter referred to as the “said property'' and delineated on the plan thereof hereto
annexed and shown thereon surrounded by blue coloured boundary lines.
(2) The developer shall at their own cost and expenses develop the property by utilizing the
entire available Floor Space Index (FSI) originating from the land and Transferable
Development Rights (TDR) which may be permitted to be loaded and incidental to the
FSI already available by payment of premium or otherwise howsoever under the
applicable laws governing development of properties in the city of Mumbai.
(3) The parties hereto confirm that the arrangement and the agreement recorded herein is
subject to the verification and examination of the title to the satisfaction of M/s.
Developer’s Lawyer & Co.
(4) In consideration of the owner granting development rights to the developers, the
developer shall pay to the owner, an aggregate consideration of Rs. 20 crore (Rupees
Twenty Crores only), which shall be paid in the manner following:
(a) A sum of Rs. 2 crore as earnest receipt whereof the owner doth hereby admit and
acknowledge;
(b) A sum of Rs. 3 crore on the owner causing to certify the title of the property to the
satisfaction of M/s. Developer’s Lawyer & Co.;
(c) A sum of Rs. 5 crore on the tenants in the building, vacating their respective
premises on the developers providing temporary alternate accommodations to the
tenants at the cost and expense of the developer;
(d) A sum of Rs. 7 crore on the developers being permitted to enter the property for the
purpose of demolishing the building and constructing on the land a new building or
buildings on the said land together with a comprehensive power of attorney to be
executed by the owner in favour of the developers. It is expressly agreed by and
between the parties hereto that the developer shall be permitted to enter the property
only as a licensee with limited access of ingress (inside) and egress (outside) to the
developer and for his employees, vehicles and agents for the purpose of the
construction of the new building or buildings;
(e) And the balance of Rs. 3 crore against the owner executing the conveyance in favour
of the co-operative society, that shall be formed of the purchasers of the new flats in
the new society and the tenants who will be rehabilitated in the new building or
buildings. (Below part was dictated on February 20, 2021)
(f) In addition to the aforesaid consideration, the Developers undertake to allot 2 flats
admeasuring __ square feet each, in the newly developed building, to the Owner.
(5) The Developers agree and undertake to rehabilitate the tenants in Wing B (means Wing
A - all new purchasers, Wing B - allotment to tenants) by allotting to them flats
admeasuring ___ square feet each without any cost whatsoever (developer agrees to
give flats to the tenants because it's their right.)
(Question: Caveat emptor in a property transaction equals to ___ (Ans.: as is - where is))
(6) (I) The development rights granted herein by the Owner to the Developers are on as-is
where-is basis and the Developer shall develop the Property at their own cost and
expenses by demolishing the existing structure and constructing thereon, a new building
comprising podium and ___ storeys in accordance with the plans approved by BMC and
the town-planning authorities.
(II) It is agreed that the Developer shall be entitled to avail of the benefits and
advantages of the development rules in force in the city of Mumbai under which the
Property shall be developed and to sell the premises in the new building in accordance
with the provisions of the Maharashtra Ownership Flats Act and to receive and realise
the purchase consideration in respect of the sale of the flats and transfer the new
building in favour of the co-operative society of the purchasers of the premises; and to do
all such acts, deeds and things in respect thereof, and in particular:
(a) (Keep in mind what are the things that a developer has to do) Prepare the layout
for the primary development of the Property and to have the same sanctioned by
BMC and other local authorities.
(b) Prepare the plans of the proposed building to be constructed on the Property in
accordance with the rules and regulations of the applicable laws, BMC and the
town-planning authority (surveyor office etc.). And to submit the said plans to the
concerned authorities for their approval and to sign and execute all writings,
applications and undertakings as may be required or necessary in connection with
the approval and sanction of the plans.
(c) To appoint architects, surveyors, engineers, contractors and labour force required
for the development of the Property. (Developer has to register the names of
engineers, architects, surveyors with BMC - Because BMC won’t allow developer to
appoint anyone unless that person is on its approved list)
(d) Make applications to the concerned authorities for obtaining water and electricity
connections and for permits or quota for cement, steel and other controlled building
material. (permits and quota isn’t relevant in today’s time - only relevant when
declared by the government as a controlled item being an essential commodity).
(e) Make necessary applications to modify and revise the plans and the specifications
already submitted to BMC and other authorities to meet a contingency.
(f) To accept service of any writs, summons, or other legal process and to represent
the Owner in any judicial or quasi-judicial tribunal and appear before BMC,
Tehsildar, Talathi, Collector, for the purpose of any matter relating to the
development of the property and if necessary, file suits or other proceedings in any
court of competent jurisdiction and for the said purpose to sign, execute, verify and
declare applications, plaints, writs, defences, written statements, vakalatnamas,
documents, affidavits and all other necessary writings. (legal power given to
developer so that owner is not troubled)
(g) Subject to the provisions of Clause __ hereof, enter upon the Property to demolish
the existing structure and to construct a new building thereon and enter into
agreements for sale or allotment of flats in the new building with the purchasers or
allottees of the flats, it be expressly agreed and declared that the Developer shall
be entitled to enter the Property for the purpose of development only and upon the
happening of the contingency mentioned in Clause ___ hereof. (Co-relate with
Clause 4 - Payment of INR 7 crore is necessary to achieve this right.)
(Question: Easements Act gives developers the right to develop the property.)
(7) The Developers shall develop the Property on their own account and liability and shall be
responsible and liable to make requisite payment to the Government, BMC and local
authorities, the engineers, the contractors, the workmen engaged in the development of
the Property. The Developer alone shall be responsible and liable to all workmen,
engineers and labourers for any accident or death or any injury caused to them during
the development process.
(8) Upon the payment of the sum of Rs. 7 crores to the owner, the owner shall grant to the
Developer the license under the Indian Easement Act, 1882 to have the right of ingress
and egress, in and from the Property together with the architect, engineers, contractors,
labourers and workmen to develop the Property.
(9) The Owner declares that he has not and nor shall he enter into any arrangement or
agreement with any person or any party in respect of the Property, and that, his
agreement with the Developers is valid, binding, and subsisting and shall not be revoked
or rescinded at any point of time by him except on the ground of non payment of the
consideration.
(10) The Owner covenants with the Developers as follows:
(a) He has absolute right to deal with the property, and no one other than himself has
any claim to or right in said property and that he has full right to grant
development rights to the developers. (This is called Covenant of Title)
(b) The Property vests in him and that he has not entered into any agreement with
any other persons except the developers and that he has not created any
encumbrances or any third party rights in respect of the Property or accepted
earnest money from any party except the Developers and that within a period of
three months he shall cause his lawyers to produce the certificate of title in
respect of the property. (This is called Covenant against Encumbrance)
(c) He has not received any notice of acquisition or requisition in relation to the
Property from the Central or State Government and that no suit or any
proceeding is pending in any court or tribunal or authority of competent
jurisdiction.
(d) He shall execute all necessary documents to perfect the title in respect of the
Property in favour of the Developers, and shall, at his own costs and expenses,
cause to remove all outstanding estates and all defects in the title such as claims
by way of occupancy, sale, exchange, mortgage, gift, trust, inheritance, adverse
possession, lease, lien or otherwise.
(Question: Why is the word occupancy and inheritance used in the above
clause? Ans.: Occupancy - To combat a situation where a tenant might have
sub-tenanted the flat / house or apartment. Occupant in this case, is a person
who has no right to be there. Inheritance - Because the person who inherits will
become an occupant and the occupancy logic above will apply to this case.)
(11) The Developers shall be entitled to all muniments (documents) of title relating to the
property which are in the possession of the Owner.
(12) The Developers undertake and covenant as follows:
(a) They shall pay the consideration in the manner set out in Clause 4 hereof and
shall allot 2 flats to the owner as agreed;
(b) He shall complete the development and construction of the new building within 24
months from obtaining the commencement certificate from BMC.
(13) Stamp duty shall be borne and paid by the developers alone.
(14) This agreement shall be enforceable in courts in Mumbai alone.
(15) In case of any dispute or difference of opinion, as to the interpretation of this
agreement the same shall be referred to the arbitration of a single arbitrator which shall
be conducted in accordance with the provisions of the Arbitration and Conciliation Act,
1996. (More arbitrators mean more money to be paid. Hence, single arbitrator.)
IN WITNESS WHEREOF the parties hereto have set their respective hands to these
presents the day and the year first hereinabove written
PLEADINGS
Question: Which are the statutory averments which need to be made in a plaint for specific
performance?
Question: Draft a Plaint for specific performance of the obligations to be performed by the
developer against the Owner (under the above development agreement).
versus
The Honourable Chief Justice and the puisne judges of this Honourable Court,
The Plaintiff above-named sheweth:
(1) The Plaintiff carries on business as builder and developer of properties in the city of
Mumbai and its place of business is as shown in the cause title.
(2) The Defendant is the owner of property comprising land, bearing Survey No. 123 and
C.T.S. No. 789 admeasuring xxx square meters situate at (address) (hereinafter
referred to as the “Suit Property”). The address of the Defendant is as shown in the
cause title.
(3) Pursuant to the agreement for development dated _ entered into by and between the
Plaintiff and the Defendant, the Defendant agreed to grant development rights to the
Plaintiff in respect of the Suit Property on the terms and conditions set out in the said
development agreement. Hereto annexed and marked Exhibit-A is a copy of the said
development agreement.
(4) Some of the material clauses of the development agreement are reproduced herein
below for convenience of easy reference:
(a) (Reproduce material clauses here, clauses such as obligations of the Owner
and of the Developer, basically the clauses that are integral to the dispute.)
(5) On the execution of the development agreement, the Plaintiff paid to the Defendant,
the sum of INR 2 crore, receipt whereof was acknowledged by the Defendant.
(6) The Plaintiff states that the Defendant had to cause to certify the title to the Suit
Property within 3 months of the execution of the development agreement. It was also
obligatory on the part of the Defendant to execute a comprehensive power of
attorney against the Plaintiff upon payment of INR __ by the Plaintiff to the
Defendant. The Plaintiff craves leave to refer to and rely upon clauses __ and __ of
the development agreement being Exhibit-A hereto.
(7) The Defendant was supposed to fulfill his obligations more particularly set out in
clauses _ and _ within _ months. However, despite repeated requests by the Plaintiff,
the Defendant failed and neglected to either execute the power of attorney or cause
to certify the title to the Suit Property as promised by him.
(8) The Plaintiff, by his letter dated __, called upon the Defendant to cause to certify the
title to the Suit Property and to execute the power of attorney in his favour. The
Plaintiff followed this letter by two further reminders in writing as well as telephonic
reminders. Hereto annexed and marked Exhibits B, C and D respectively are copies
of the letters addressed by the Plaintiff to the Defendant.
(9) Despite these reminders, both oral and in writing, the Defendant, neither executed
the Power of Attorney nor certified the title to the Suit Property as promised.
(10) The Plaintiff states that it is now over a year since the development agreement was
executed and the Defendant has failed and neglected to fulfill his obligations as
promised.
(11) The Plaintiff apprehends that the Defendant is not fulfilling his obligations as
promised in the development agreement with ulterior motives which, for the Plaintiff is
difficult to comprehend. The Plaintiff has heard, and he believes so, that the
Defendant has been offered better terms by different developers and hence, he is
failing to honour his obligations as promised.
(12) (a) Under the development agreement, the plaintiff had to pay the defendant sums of
INR 2 crore, INR 3 crore, INR 5 crore, INR 7 crore, and INR 3 crore at different
stages of development of the Suit Property.
(b) Pursuant to the development agreement, the Developer got the plans and
specifications ready from his architect and paid the necessary fee to the Municipal
Corporation of Greater Mumbai and other planning authorities (hereinafter referred to
as “BMC”). The Plaintiff also made efforts to obtain transferable development rights
(TDR) and paid a heavy price for the same. The Plaintiff states that by now he has
already spent a sum of INR __ for obtaining TDR and sanction of the plans and has
hence gone out of pocket to the tune of INR __.
(c) Despite the fact that the Plaintiff has already spent a sum of INR __ in pursuance
of the rights granted to him, the Defendant has not fulfilled his obligations.
(Question: Which are the statutory averments which need to be made in a plaint
for specific performance? Clause 13 are the ans.)
(13) The Plaintiff, has always been, as mentioned hereinabove, ready and willing to
perform his obligations and is further willing to pay to the Defendant the sum of INR
20 crore (total amount under the agreement) to the Defendant provided the
Defendant fulfills his obligations as more particularly mentioned in clauses _ and _ in
the development agreement.
(14) Due to the refusal of the Defendant to fulfill his obligations, and certify the title to the
property and execute the power of attorney, the Plaintiff is not in a position to make
any progress as regards the development of the Suit Property such as causing the
tenants to vacate the property and entering the Suit Property. As a result of this
refusal on the part of the Defendant, the Plaintiff has suffered heavy losses to the
tune of losing the sum of INR __ already spent till date. The Plaintiff has also made
arrangements to garner funds for the purpose of development of the Suit Property
and has thus suffered heavy financial losses.
(15) The Defendant is adopting a dog in the manger policy by not fulfilling his obligations
and not allowing the Plaintiff to carry on the work of development as a result of which
apart from losing the money already spent, he is suffering business losses.
(16) The Plaintiff states that the Defendant’s attitude and conduct is malafide and made
with intent to defraud the Plaintiff.
(17) The Plaintiff avers that he is always ready and willing to perform the obligations and
in furtherance thereof is even prepared to deposit in this Honourable Court the
balance sum of INR __ crore payable by him if the Defendant shows his willingness
and readiness to perform his obligations.
(18) The Plaintiff states that he is entitled to specific performance of the obligations
required to be performed by the Defendant under the provisions of the Specific Relief
Act and the Contract Act.
(19) The Plaintiff also states that balance of convenience is in his favour and that if the
prayers set out herein are not granted, grave loss and harm will be caused to him,
and in any event, the Defendant will not suffer any loss or prejudice.
(20) The Plaintiff apprehends that the Defendant will create third party rights and fritter
away the Suit Property and dispose of the same to a third party to defeat the claim of
the Plaintiff.
(21) The Defendant resides in Mumbai, the Suit Property is situate in Mumbai, the
Defendant carries on business in Mumbai. Therefore, this Honourable Court has
jurisdiction to try and entertain this suit.
(22) The Plaintiff has paid court fee of INR __.
(23) The Plaintiff relies upon documents, a list whereof is annexed hereto.
(24) The Plaintiff, therefore, prays that:
(a) This Honourable Court be pleased to direct the Defendant to perform his
obligations as more particularly agreed by him in clauses _, _, _ and _ of the
development agreement being Exhibit-A hereto;
(b) This Honourable Court be pleased to direct the Defendant to pay the sum of
INR _ already spent by him together with interest theron at _ percent per
annum thereon from _ till payment of the said sum of INR _;
(c) Pending the hearing and final disposal of the suit, this Honourable Court be
pleased to appoint, Court Receiver, High Court Bombay, under the provisions
of the Civil Procedure Code, 1908;
(d) Pending the hearing and final disposal of the suit, this Honourable Court be
pleased to injunct the Defendant from entering into any agreement or creating
third party rights or accepting any earnest from any person and from
disposing off the Suit Property in any manner whatsoever;
(e) For interim reliefs in terms of prayer (c) hereinabove;
(f) For ad interim reliefs in terms of prayer (d) hereinabove;
(g) For costs; and
(h) For such further and other reliefs might deem fit and proper.
B of Mumbai, Indian inhabitant, residing at _____ (hereinafter referred to as the “B” which
expression shall, unless repugnant to the context or meaning thereof, mean and include her
heirs, executors and administrators) of the Second Part;
C, Indian inhabitant, residing at _____ (hereinafter referred to as the “C” which expression
shall, unless repugnant to the context or meaning thereof, mean and include her heirs,
executors and administrators) of the Third Part; and
D, Indian inhabitant, residing at _____ (hereinafter referred to as the “D” which expression
shall, unless repugnant to the context or meaning thereof, mean and include her heirs,
executors and administrators) of the Fourth Part;
WHEREAS
Now this deed of dissolution witnesseth and it is hereby agreed by and between the parties
hereto as follows:
(1) The partnership business hitherto carried on in the name and style of M/s. Shree
420-69 by and between the Partners shall stand dissolved on and with effect from
31st March, 2021 to the intent and purpose that the said business of M/s. Shree
420-69 shall not be carried out in partnership from 1st April 2021.
(Question: Draft Deeming clause of a deed of dissolution. Ans.: Above clause 1.)
(2) The accounts of the partnership shall be prepared as on 31st March 2021 and
circulated to the Partners within 30 days of the close of business to enable them to
verify the accounts.
(3) The share of D will be apportioned to him and A, B and C will execute the deed of
relinquishment or release in favour of D to the intent and purpose that D shall
singularly own, possess and enjoy the asset earmarked for him and that A, B, C will
not be able to use that asset with effect from the date of registration of the said deed
of release or relinquishment.
(4) D undertakes and covenants with A, B and C that he shall pay the income tax and
GST liabilities coming to his share as and when the same is required to be paid.
(5) D hereby appoints and nominates A, B and C as his constituted attorneys to do and
perform all acts, deeds and things as may require to be performed in all matters
relating to the partnership business. (D doesn’t want to be troubled in matters of
dissolution of the partnership business) Accordingly, simultaneously with the
execution hereof, D executes a power of attorney in favour of A, B and C,
empowering them to do all acts and deeds as will be mentioned in the said power of
attorney.
(6) D undertakes and covenants that for a period of 1 year he shall not carry on business
which directly or indirectly competes with the partnership business carried on till 31st
March 2021 (Negotiable point).
(7) Each Partner assures and undertakes that he has not accepted any money for
himself in the name of the partnership and that in the event of it being found that he
has received some such money, he shall account for the same before the completion
of the accounts of the partnership as aforesaid.
(8) Stamp duty and registration fee in respect of these presents and in respect of all
deeds and documents which may require to be executed shall be borne and paid by
each Partner in equal proportion.
(9) Income tax and other tax liabilities payable in respect of the partnership business
shall be paid by all the Partners in equal proportion.
(10) The Partners undertake to execute all documents and deeds that may require to be
executed to perfect the title of the recipient of the asset and in that behalf D
undertakes to execute deeds of relinquishment and / or release in the assets hitherto
belonging to the partnership in favour of A, B and C to the intent and purpose that A,
B and C shall own and possess the said asset coming to his share without any
impediment or demand or claim from D or anyone purporting to claim from or under
D.
(11) The Partners agree to indemnify each other in respect of any liability that may befall
him as a Partner of M/s. Shree 420-69.
IN WITNESS WHEREOF the Partners have executed this deed of dissolution the day and
the year first hereinabove written