Moot Problem 1
Moot Problem 1
Background:
Aman Singh, a resident of Delhi, is the absolute owner of a property situated in Vasant Kunj, Delhi.
The property was inherited by Aman from his late father, Rajesh Singh, through a registered will
in 2010. The property is a residential plot measuring 500 square yards, with a market value of ₹5
crores.
Facts:
In January 2022, Aman Singh decided to sell the property due to financial difficulties. Devansh
Gupta, a businessman based in Mumbai, expressed his interest in purchasing the property. After
negotiations, the parties agreed on a sale price of ₹4.5 crores.
On 1st February 2022, Aman and Devansh entered into a written agreement to sell the property for
₹4.5 crores. Devansh paid an advance of ₹1 crore, and it was agreed that the balance amount of
₹3.5 crores would be paid at the time of execution of the sale deed. The agreement also stated that
the sale deed would be executed and registered on or before 30th April 2022.
As part of the agreement, Devansh was given possession of the property immediately after the
payment of the advance, and he started residing there. Devansh also made certain renovations to
the property, investing around ₹25 lakhs.
However, in March 2022, Aman Singh received an offer from Priya Verma, a wealthy entrepreneur,
to purchase the same property for ₹5.5 crores. Tempted by the higher offer, Aman accepted Priya’s
offer without informing Devansh. On 10th April 2022, Aman executed a sale deed in favor of Priya
Verma, and the deed was registered. Priya, who was unaware of the prior agreement with Devansh,
took possession of the property with the assistance of local authorities.
On 12th April 2022, when Devansh returned from a business trip, he found Priya Verma residing
in the property. Devansh immediately contacted Aman, but Aman refused to return the advance or
acknowledge the agreement. Devansh then filed a suit in the Delhi High Court seeking specific
performance of the agreement to sell, possession of the property, and damages for the renovations
made by him.
Priya Verma, in her defense, claimed that she was a bona fide purchaser for value without notice
of the prior agreement between Aman and Devansh. She also argued that the sale deed in her favor
was duly registered and that she had a superior right to the property.
Issues for Consideration:
1. Whether the agreement to sell between Aman Singh and Devansh Gupta is enforceable
under the Transfer of Property Act, 1882?