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DPC 2

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0% found this document useful (0 votes)
20 views43 pages

DPC 2

Uploaded by

23law2bb001
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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91

PART B: CONVEYANCE

Definition of Conveyancing

The art of ‘conveyancing’ is of English origin. The word ‘to convey’ means to transfer or to
make over. The word conveyancing means an instrument or deed through which one or more
living person transfer his or their interest in present or in future in or upon an inmmovable
property to one or more living persons. In other words conveyance means an act by which
property is conveyed or voluntarily transferred from one person to another by means of a
written instrument and other formalities. Section 2(10) of the Indian Stamp Act, 1899 defines
the term ‘conveyance’ as:

“Conveyance includes a conveyance on sale and every instrument by which property, whether
movable or immovable, is transferred inter vivos and which is not otherwise specifically
provided for by Schedule I.”

History of Conveyancing

In ancient times, in England the deed writing was optional and it continued to remain optional
until the time of King Charles II, particularly the case in which the deed was required not to
be under seal. Writing was required only in the matter of importance. It was only during the
reign of King Charles II that the British Parliament enacted in 1677 a legislation requiring
writing for creation and transfer of the interest in landed property with an exception in case of
lease for less than three year. The Real Property Act of 1845 required all grants of landed
interest to be made in writing which came to be known as ‘conveyancing’. The present form
of conveyancing is based on the Conveyance of Land Act of 1845 and the Law of Property
Act of 1925.

Conveyancing in India is not unknown as the word, ‘Qabuliyatnama’, ‘Jagirdar’, ‘Muafidar’


and ‘Charpatra’, etc., are there from ancient days in the Indian literatures. As in England and
so in India, too, there are two types of Deeds, viz., ‘Deed Poll’ and ‘Indenture’. Charpatra
(Redemption of rent), Jagir grants, Quabuliyats, etc, were all the seal of the grantor. The
Deed Poll is a document which is executed unilaterally in the first person while an indenture
is bilateral or multilateral deed. Bonds, Power of Attorney and Wills are ‘Deed Polls’.
Mortgages, sales and gifts can also be unilateral and so these are 'Deed Polls', while a deed of
Lease is a bilateral document to be executed by the Lessor and Lessee both and so it is an
‘Indenture’. No legislation in India has ever been passed on the law of conveyancing.

The Position of Drafting in India

The condition of drafting of conveyancing in mofussil India was deplorable. It was only in the
then Presidency Towns (metropolitan cities) of Bombay, Calcutta and Madras the work of
drafting of the conveyancing remained in the hand of solicitors and barristers well trained in
the field of drafting on the lines of English conveyancing. But in the Mofussil Towns the task
92

of drafting of conveyancing remained in the hands of ‘deed writers’, ‘scribes’ or ‘scribers’


who have no legal knowledge but have adopted the profession of deed writing. So, the deeds
in Mofussils generally and commonly suffer from so many defects and sometimes these
defects become incurable.

Deed

In a broad sense the ‘deed’ means something done or performed which is synonymous with
‘act’. In legal sense, deed means a solemn act denoting document, and it may be defined as an
instrument written on parchment or on a paper executed, signed, sealed and delivered by the
executant. A document or an instrument through which a present or future interest in an
immovable property is transferred by one or more living persons to another living person or
persons is called deed. It is called a deed because it is considered the most solemn and
authentic act that a person can possibly perform in relation to his property. Statements made
in deeds may amount to admission and may operate as estoppel in certain circumstances.

In Halsbury's Law of England, a deed has been defined as an instrument written on parchment
or paper expressing the intention of some persons named therein who make assurance of some
interest in property, or of some legal or equitable right, title or claim, or undertake or enter
into some obligation, duty or agreement enforceable at law or in equity, or to do some other
act affecting the legal relation or position of a party to the instrument.

Historically, in England, deeds were classidfied into (a) Deed Poll, and (b) indenture deed.

Deed Poll

As the old practice in England was to indent or cut a document which indicated towards
executant of the deed; and when deed was polled or cut at the top or at the bottom it was
known as ‘Deed Poll’. It was called Deed Poll or single deed because it was executed by one
party only. A bond, a power of attorney, and a will are the best examples of Deed Poll. It is an
executed contract of conveyance made by the grantor alone.

Indenture Deed

Under the old practice of drafting of deed in England, the mark of cut or indent indicated
towards the executant of the deed. A deed is technically called an ‘indenture’ or ‘deed
indented’, because the old-practice in England was to cut or intend for the purpose of tally.
The old practice was to write two copies of the deed upon the same piece of parchment or
substance with some words or terms or letter of alphabet were so written that when one copy
was separated from the other, the substance or the parchment was so cut or indented so as to
leave half of the word or letter in one copy and the other half in another copy, so as to fit or
aptly join its counterpart from which it was supposed to have been cut, indented or separated.
This practice of indenting of deeds is no more in England and at present indenture means a
deed between two or more parties importing the meaning of executed contract of conveyance
93

made under seal. A deed of Lease, a mortgage deed and a partnership deed were the best
example of indenture deed according to old practice in England.

Distinguish between Deed Poll and Indenture Deed

1. Deed Poll and Indenture both are executed contract and are always in writing.

2. Both are deeds of conveyance and used as documentary evidence if needed.

3. Deed Poll or single deed is a unilateral document executed by one party only, while
Indenture deed is bilateral or multilateral document executed by two or more than two parties.

4. A Deed Poll is generally written in the first person while an Indenture deed is always
written in the third person. In other words, in a Deed Poll, the grants and the covenants of the
grantor are in the first person, while in an Indenture, grant and covenants are in the third
person.

5. A Deed Poll may be commenced with the expression, ‘Know All Men By These
Presents’ or ‘To whomsoever it May Concern’ or straightway ‘I, so and so, Send These
Presents’, while in an Indenture deed, the opening words are – ‘This Indenture of..........’ or
‘This Deed of.........’ or ‘This Instrument of.........’ etc.

6. Historically, in England, the difference between a Deed Poll and an Indenture deed
was an interesting one, but at present there is no such difference and both are indiscriminately
used for each other. The difference is only for phraseology but of no practical importance.

7. The old concept of difference between the Deed Poll and an Indenture as, historically,
was maintained in England had never found place in India. It is because an indenture relating
to real property in England was required to be made under seal which never was a
requirement in India.

Document

Documents means any matter expressed or described upon any substance by means of letters,
figures, or marks, or by more than one of those means intended to be used, or which may be
used, for the purpose of recording that matter ( sec. 3, Indian Evidence Act 1872).
Documentary evidence is an important piece of evidence of which the Court, Jury and
Tribunal take judicial cognizance.

Deed, Conveyance and Deed of Conveyance


94

The term ‘Deed’, ‘Conveyance’ and ‘Deed of Conveyance’ or ‘Conveyancing’ are frequently
used interchangeably to denote one and the same legal concept, and each is being commonly
understood to mean an instrument in writing whereby the grantor conveys to the grantee some
right, title or interest in or upon some real property . Thus, by the aforesaid expressions, we
mean each of them as document, indenture or instrument in writing. So , the terms,
‘conveyance’, ‘conveyancing’, ‘deed of conveyance’ or ‘conveyancing’, ‘deed’, ‘document’,
‘indenture’ and ‘instrument’ are interchangeable for the purpose of drafting of documents.

Object and Function of Conveyancing

Movable property may be physically given and taken by actual delivery, while this is not
possible in case of immovable property. Thus, conveyancing is that branch of the law of
transfer of property which deals with the mode and form of transfer to which both- the
transferor and the transferee have agreed upon. Its main object is to enable the owners of real
property to make voluntary transfers of their right, title and interest therein for some specific
purpose and for a specified period. Such transfers are not otherwise possible than by
conveyancing.

It expresses the intention of the parties to the deed of conveyance so that accordingly it shall
take effect. In case of any doubt, dispute, ambiguity and susceptibility, the real intention of
the parties may be discovered from the words, phrases and the expression used in the deed. A
transferor may have passed the property intending to pass; but if he has not expressed himself
in suitable words of the language, the deed may be defective or susceptible of two or more
constructions; and so the benefits of the transfer may be lost to the transferee. Where any
adverse claimant interposes before the transferee, may get actual legal possession of the
transferred property, it may be quite possible that the transferor with all his willingness may
not be able to help the transferee.

It helps the court and judicial tribunals to determine any dispute if subsequently arises
between the parties to the deed. It serves the purpose of both- the transferor and the transferee
in protecting their interests. It protects the interest of the transferee from any precedent and /or
subsequent acts or omissions of the transferor or any other person claiming through or under
him against the expressed intention of the grant and the covenant of the deed; and likewise,
the interest of the transferor is also protected from any subsequent acts or omissions of the
transferee. It is a document of title to the property and forms the basis of a record of rights
maintained by the Government. It is, also, a documentary piece of evidence.
COMPONENTS OF DEEDS

Drafting of a deed involves the law by which parties are governed, effect of the transaction
and certainty and clarity by using appropriate words and expressions. An ordinary deed of
transfer may conveniently be divided into the following parts: Description of the deed; Date;
Parties; Recitals; Testatum; Consideration; Receipt; Operative words; Parcels; Exception and
Reservations (if any); Habendum; Covenants (if any); Testimonium. The part of the deed
95

which precedes the habendum is termed as “the premises”. Each of these parts will now be
separately considered.
A) DESCRIPTION/NAME/TITLE OF THE DEED
All deeds should be described by the name of the transaction such as “THIS DEED OF
MORTGAGE”, THIS DEED OF SALE”, THIS LEASE”, THIS DEED OF GIFT”, etc. When
the deed is of a complex character and evidences different transactions known by different
legal names, or the conveyancer is not sure what name should properly be given to it, it would
be best to describe it simply as “THIS DEED”. The description is usually written in capitals.
B) DATE AND PLACE
After the description of the deed is stated, the date on which it is executed shall be stated:
“THIS LEASE made on the first day of February one thousand nine hundred and
ninety nine.”
The date of a deed is the date on which it is singed by the party or parties executing it. When
there is only one party to a deed, as in the case of Deed Poll, or when all the parties sign it on
one and the same date, or when, though there are several parties to a deed, all do not sign and
those who sign do so on one date, there is no difficulty. But if several parties to a deed sign it
on different dates, the question is which date should be entered as the date of deed. The
practice is to regard the last of such dates as the date of the deed.
The date should, in order to avoid mistake and risk of forgery, be written in words and not in
figures. Figures may be added within parenthesis.
In every case in which a deed is executed by more than one person, the date on which each
signs the deed must be shown in the deed, preferably against his signature.
The place where the deed is executed must be specified very clearly and generally at the start
of the document.
C) PARTIES TO THE DEED
1. Transferee

After the date, the names and description of the parties to the deed are mentioned. Who are
the necessary and proper parties to a deed depends on the circumstances of each case.
Although a transferee is not a necessary party, and a deed will not be invalid or ineffective if
he is not mentioned as such, except in the case of a Lease, he is certainly a proper party. It is
always advisable to make him a party.
2. Third person
Sometimes it is necessary or expedient, in order to validate a transfer or to give a complete
title to the transferee, or to avoid possible disputes or doubts in that regard, to obtain the
consent or concurrence of a third person. In such cases, such third person may also be joined
as parties.
3. Description
96

Full description of the parties so as to prevent difficulty of identification should follow the
name. In India, parentage, occupation and residence including Municipal or survey number,
street and city and in the case of resident of a rural area the village, sub-division, tehsil and/or
development block are generally regarded as sufficient to identify a man, but if there is any
other description which is sufficient, the same may be normally adopted. Where the transferor
is as member of a scheduled caste or scheduled tribe for whose protection the statute places
restrictions on his right to transfer it may be necessary to mention such caste or tribe while
reciting the fact of permission for the transfer having been obtained from the competent
authority.
4. Juridical Person
A party to a transfer need not be a living individual but may be a company, or association or
body of individuals or an idol or a corporation sole or aggregate, or in fact, any juridical
person capable of holding property and entering into contracts.
5. Idol
As an idol has to act through some natural person, the name of the latter should be disclosed.
6. Reference Labels of Parties
In order to avoid the repetition of the full name and description at every place, the parties are
generally referred to in the body of the deed by some easy and convenient names which
generally have reference to the character in which they join the deed, such as ‘the vendor’,
‘the purchaser’, ‘the lessor’, ‘the lessee’, In order to avoid mistakes in writing words
resembling each other for opposite parties, e.g., a combination of ‘mortgagor’ and
‘mortgagee’ or ‘vendor’ and ‘vendee’, they prefer to use a combination of ‘borrower’ and
‘mortgagee’, or ‘vendor’ and ‘purchaser’. If no such name is adopted, the parties can be
referred to as ‘the party of the first part’ (or ‘the first party’), ‘the party of the second part’ (or
‘the second party’), ‘the said AB’, ‘the said CD’, but is is always preferable to give each party
some short name for reference. Whatever short name is adopted the party should be referred
to throughout by the same name.
The form, in which the parties will be described in the beginning of the deed, would thus be
as follows:
“This SALE DEED is made on the_______day of _______BETWEEN AB (hereinafter
called ‘the Vendor’) of the one part and CD (hereinafter called ‘the Purchaser’), of the other
part.”
If the transferor along is made a party, this clause will run as follows:
“The SALE DEED is made on the _______day of________by AB (hereinafter called
‘the Vendor’)”.
If there are more than two parties, instead of the works “of the one part” and “of the other
part” the works “ of the first part”, “of the second part”, “of the third part”, etc., should be
used.
D) RECITALS
97

Recitals are of two kinds: (1) Narrative Recitals, relates to the past history of the property
transferred and set out facts and instruments necessary to show the title and the relation of the
parties to the subject-matter of the deed; and (2) Introductory Recitals, which explain the
motive for the preparation and execution of the deed.
Form of Recitals
Recitals generally begin with the word ‘WHEREAS’, but, when there are several recitals, one
can either repeat the word before every one of them, by beginning the second and subsequent
ones with the words ‘AND WHEREAS’, or divide the recitals into numbered paragraphs with
the word ‘WHEREAS’ at the top.
E) Testatum
The next part of a deed consists of the operative part. It commences with a witnessing clause
termed the ‘testatum’, which refers to the introductory recitals of the agreement (if any) and
also states the consideration (if any) and recites acknowledgement of its receipt. The
witnessing clause usually begins with the words ‘NOW THIS DEED WITNESSES’. These
words of testatum are of no importance as affecting the operation of the deed and their sole
use is to direct attention to the object which the deed is intended to serve several objects, use
the words ‘as follows’ after the testatum, thus:
‘NOW THIS DEED WITNESSES AS FOLLOWS:’
F) CONSIDERATION
As contracts are necessarily for consideration (Sec. 10 of the Contract Act), it is advisable to
express the consideration. This is necessary in many cases of transfer for ascertaining the
stamp duty payable on the deed as Sec. 27 of the Indian Stamp Act requires that the
consideration should be fully and truly set forth in the deed. The penalty for omission to
comply with this requirements is a fine which may extend to RS. 5,000 (vide Sec. 64).
G) RECEIPT
Acknowledgment of receipt of consideration may be embodied in the deed itself instead of
passing a separate receipt. Thus:
“NOW THIS DEED WITNESSES THAT in pursuance of the aforesaid agreement and in
consideration of Rs.________paid by the purchases to the vendor before the execution hereof,
the receipt of which the vendor hereby acknowledges”.
H) OPERATIVE WORDS
Then follow the real operative words which vary according to the nature of the estate and of
the transaction.

I) PARCELS
98

This is a technical expression meaning description of the property transferred and it follows
the operative words. Care must be taken, on the one hand, to include in the particular
description or in general words, all the lands, etc., which are intended to pass so that no doubt
may arise as to the extent and operation of the deed; and on the other hand not insert words
which will pass more than what is intended.
Map: Sometimes it is necessary to have a map or a plan of the property in order to avoid
mistake about its identity and to indicate the actual property conveyed with greater
definiteness and precision. A map referred to in a transfer deed is treated as incorporated in
the deed, and if it is drawn to scale and demarcates the boundaries clearly it is not permissible
to attempt to correct them with reference to revenue records.
Great care should be taken in describing the property, as a slight mistake or omission may
cause immense loss to a party and if the property is described both in the body and the
schedule, a conflict between the two should be carefully avoided.
J) EXCEPTIONS AND RESERVATIONS
All exceptions and reservations out of the property transferred should follow the parcels.
An exception is something in existence at the date of transfer which, if not expressly
excepted, would pass with the property as described in the parcels, such as trees.
A reservations is something not in existence at the date of the transfer but is newly created by
the grant, e.g. when the vendor reserves a right of way over the property. But since both
‘excepting and reserving’ are used in practice it is immaterial whether what follows is an
exception or a reservation.
K) HABENDUM
This is familiar ‘to have and to hold’ (in Latin, habendum et tenendum) clause of the English
precedents. In India such phrases as ‘to have and hold’ or such expressions as ‘to the use of
the purchaser’ are not strictly necessary.
L) CONVENANTS AND UNDERTAKINGS
If the parties to a transfer enter into covenants, such covenants should be entered after the
Habendum. While drafting covenants, regard should be had to the statutorily implied
covenants which operate subject to any contract to the contrary. Where several covenants
follow each other, they may run on as one sentence, each being introduced with the words
‘and also’ or by the words ‘First’, ‘Secondly’, etc. or they may be set out in paragraph form
with the heading.
‘THE VENDOR HEREBY COVENANTS WITH THE PURCHASER AS FOLLOWS:’

It is better to put in the transferor’s and the transferee’s covenants separately, and any
covenants mutually entered into by the parties with each other may be inserted separately. If
the transferer’s and transferee’s covenants are separately mentioned in the deed, care should
be taken that no covenant which should really by the covenant of one party is entered in the
covenants of the other. For example, if a lessee is given the right to cut trees of a certain kind
and not to cut tree of a different kind, the latter covenant is a covenant by the lessee and the
99

former is a covenant by the lessor and both should not be inserted in one covenant by either.
When it is found inconvenient or awkward to split up, what really is one covenant into two
parts, it is better to insert such a covenant as a mutual covenant by the parties.
Sometimes the terms and conditions of a transfer cannot be conveniently separated into
transferor’s covenants and transferee’s covenants. In such cases, it would be better to include
all the covenants under one head as parties’ covenants thus:

‘THE PARTIES HEREBY MUTUALLY AGREE WITH EACH OTHER AS FOLLOWS:’


M) TESTIMONIUM
The last part of a deed is the testimonium which sets forth the fact of the parties having signed
the deed. This is not an essential part of the deed, but as it marks the close of the deed there is
no harm in continuing the established practice. The usual English form of testimonum is as
follows:
‘In witness whereof the parties hereto have hereunto set their respective hands and seals the
day and year first above written.’
The use of seals is not common in India except in cases of companies and corporations, and
the proper form in simple language would be somewhat as follows:
‘In witness whereof the parties hereto have signed this deed on the date first above written.’
N) SIGNATURES AND ATTESTATION
After testimonium should follow the signatures of the executants and those of attesting
witnesses. If executant is not competent to contract or is a juristic person, the deed must be
signed by the person competent to contract on his or its behalf.

*****
100

WILL

Section 2(h) of the Indian Succession Act, 1925 defines Will as:
“Will means the legal declaration of the intention of a testator with respect to his property
which he desires to be carried into effect after his death.”

Section 2(b) of the Indian Succession Act, 1925 defines Codicil as:
“Codicil is an instrument made in relation to a will, and explaining, altering or adding to its
disposition, and shall be deemed to form part of the will.”

 There is no standard form prescribed by law regarding drafting a will.


 The language of the will should be clear and unambiguous.
 The properties should be described with complete clarity.
 A will is drafted in first person.
 Details of the testator to be mentioned clearly. (Name, Age, Occupation, Address
etc.)
 Details of bequeath, to whom and which property is given.
 Details of the executor if any.
 Previous testaments if any.
 Sound state of mind of testator.
 Signature and attestation. Signature of the testator and attesting witnesses(with their
details)
 No stamp duty is required to be paid on a will.
 Will is not required to be compulsorily registered, it is optional.
101

WILL

THIS IS THE LAST WILL TESTAMENT of me, Sh. XYZ S/o Sh. ABC R/O 13, PQS
APPARTMENTS, ROHINI, DELHI- 110085 made at….(Place) on….(Date).
That life is uncertain and this is my last Will by way of which I bequeath voluntarily and out
of my own free will in a sound state of mind, my self acquired properties to the beneficiaries
as described hereunder.

WHEREAS I was married to…..(name) on….(date) and is living happily for …. Years and
out of the wedlock we have two children, a son …….(name) aged… and a daughter ……
aged…..
AND WHEREAS ….. my son is happily married to….(name) and out of the wedlock, they
are blessed with one child….. (name) aged…. and are residing at ……(address).
AND WHEREAS ……my daughter is married to…(name) and out of the wedlock they are
blessed with one child….(name) aged… and are residing at…(address).

In my lifetime I have built my movable and immovable properties out of my own sources and,
therefore, I am the absolute owner of the properties hereunder.
IMMOVABLE PROPERTY
1. Residential property bearing no. ………….admeasuring …………...
2. Residential property bearing no……….admeasuring………….
(hereinafter called the Immovable Property)
MOVABLE PROPERTY
All my household and personal belongings at ………..
FD’s if any
Gold Details etc.
(hereinafter called the Movable Property)

I HEREBY WISH that my abovementioned property should devolve in the following manner:
That my property bearing no………would devolve on to my wife….absolutely and
unconditionally and she shall deal with the said property in any manner as she likes and my
children will have no claim on this property whatsoever.
That my property bearing no…… and my all movable property would devolve on to my
son….. absolutely and unconditionally and none of my legal heirs shall have any claims on
this property whatsoever.
That my daughter is happily married and is well settled in her matrimonial home and she does
not need any financial support for survival after my death.
That my present will is drafted in my presence and upon my instructions and contents of my
will have been read out to me in my own vernacular.
I declare the contents of this Will to be my last Will arrived at by me in sound state of mind.

IN WITNESSES WHEREOF I….. have signed this will hereunder on this ….Day of ….,
20...at…in the presence of the following witnesses who are also attesting this will in my
102

presence and at my request.


Sign
TESTATOR

Signed by the above named testator in our presence at the same time and each of us has in the
presence of the testator signed our name hereunder as an attesting witness

1. Name and details of Witness 1 Sign


2. Name and details of Witness 2 Sign
*****
103

POWER OF ATTORNEY
Power of Attorney is a document of agency or a formal arrangement by which one person
(Principal) gives another person (Attorney or Agent) authority to act on his behalf and in his
name. As per the Power of Attorney Act, 1882:
“Power-of-Attorney includes any instruments empowering a specified person to act for and in
the name of the person executing it.”
A Power of Attorney may be a general or special power. A General Power of Attorney covers
more than one subject matter while a Special Power of Attorney relates to a specific subject
matter, though it may contain several powers relating to the same subject matter. Power of
Attorney is required to be stamped but need not be mandatorily registered.
GENERAL POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS THAT THIS GENERAL POWER OF
ATTORNEY is executed at New Delhi on this 1st day of January 2004 by M/s. TINRIN, a
company incorporated under the Companies Act having its registered office at E-1
WESTEND, New Delhi through its Managing Director Mr. X……(details) (hereinafter
referred to as the EXECUTANT), DO HEREBY APPOINT, NOMINATE, CONSTITUTE
AND AUTHORISE Sh. Y….(details), Executive Director of M/s TINRIN (hereinafter
referred to as the ATTORNEY) AS MY TRUE AND LAWFUL ATTORNEY TO
MANAGE, CONTROL, LOOKAFTER / SUPERVISE, PERFORM ALL LEGAL ACTS
MENTIONED HEREUNDER.
WHEREAS…..
AND WHEREAS…..(Mention few recitals like the purpose of making this GPA).
NOW THIS GENERAL POWER OF ATTORNEY WITNESSESTH AS UNDER:-
(i) To institute, commence and conduct any action, suit or other legal proceedings before any
Court, Arbitrator, Quasi-judicial or authorities, Offices, Tribunals, Labour Courts,
Conciliation Officers, Land Acquisition Officers, etc. on behalf of the company for claiming
any right, relief, recovery, title, interest, property or in respect of any matter connected with or
arising out of the Company’s business and subject to aforesaid, to settle, adjust, compromise
or submit to Arbitration any such actions, suits or proceedings.
(ii) To defend all actions, suits, proceedings, applications, petitions, appeals, revisions,
reviews, arbitrations, conciliations, taxation and labour matters and other disputes that are
now pending or may hereafter be brought or made or instituted in any Court or office or
Tribunal, Arbitrator, Conciliation Officer, or any other Judicial or Quasi-judicial authorities in
the name of the company.
(iii) To appear and represent the Company in any Court of Justice or Tribunal whatsoever and
for the purpose aforesaid or any of them to sign and verify plaints, written statements,
applications and swear affidavits and to sign petitions and other necessary documents
including Valalatnama and to appoint any Solicitor, Advocate, Pleader or other Legal Advisor
104

with the necessary power and such again at pleasure, to revoke and appoint others in their
place.
(iv) To continue and conduct or defend any appeal, review, revision, arbitration in any Court
or Tribunal or office against any order, judgment or decree made in suits, actions,
proceedings, application etc.
(v) Generally for and in the name and as the act and deed of the Company to make, execute
and do all and every such further and other acts. Deeds, matters and things as shall be fit,
requisite and necessary in and about the premises and for all or any of the purposes aforesaid
and as the Company could do if acting in the premises.
And I, the said Managing Director of the Company and also for the said Company hereby
agree to ratify and confirm whatsoever the said Attorney shall lawfully do or cause to be done
in or about the premises by virtue of these presents.
IN WITNESS WHEREOF I have hereunto signed this document on the date and place first
above written in the presence of following witnesses.

EXECUTANT
WITNESSES: (1)
(2)
*****
105

SPECIAL POWER TO ATTORNEY TO EXECUTE A SALE DEED

KNOW ALL MEN BY THESE PRESENTS THAT THIS SPECIAL POWER OF


ATTORNEY is executed at New Delhi on this 1st day of January 2004 by I, AB, ……(details)
(hereinafter referred to as the EXECUTANT), DO HEREBY APPOINT, NOMINATE,
CONSTITUTE AND AUTHORISE Sh. Y….(details), (hereinafter referred to as the
ATTORNEY) AS MY TRUE AND LAWFUL ATTORNEY TO PERFORM ALL LEGAL
ACTS MENTIONED HEREUNDER.
WHEREAS…..
AND WHEREAS…..(Mention few recitals like the purpose of making this SPA).
NOW THIS SPECIAL POWER OF ATTORNEY WITNESSESTH AS UNDER:-
1. To receive from the purchaser or his heirs or assigns the sum of Rs……………being the
price agreed to be paid to me by XY for the purchase of (description of property) under an
agreement dated the………………and to give an effectual receipt and discharge for the same;
2. To execute a proper sale deed of the said property or any other deed or assurance necessary
for the completion of the sale of such property and to get the same duly registered;

And I hereby agree to ratify and confirm whatsoever the said Attorney shall lawfully do or
cause to be done in or about the premises by virtue of these presents.
IN WITNESS WHEREOF I have hereunto signed this document on the date and place first
above written in the presence of following witnesses.

EXECUTANT
WITNESSES: (1)
(2)

*****
106

SALE OF IMMOVABLE PROPERTY

Section 54 of the Transfer of Property Act, 1882 defines Sale as:

“Sale is a transfer of ownership in exchange for a price paid or promised or part-paid or part-
promised.”

 The contract for sale of immovable property must be in writing.


 Section 55 of the Transfer of Property Act, 1882 lays down the duties, obligation and
rights of the vendor and purchaser under an agreement of sale, as well as for sale in case of
absence of contract to the contrary.
 Sale deed is chargeable with the stamp duty.
 Where the value of the immovable property is more than Rs. 100, it is required to be
compulsorily registered.
 An agreement for sale and sale deed should clearly show: who are the parties to the
contract (Vendor/Vendee or Vendor/Purchaser or Seller/Buyer); the subject matter; the
intention to sell and buy; the price agreed and how it is to be paid and other terms of the
contract.
 The contract for sale of immovable property is usually preceded by an agreement for
sale

AGREEMENT FOR SALE

THIS AGREEMENT is made at …………on this …………day of……….

BETWEEN

Mr. A aged……..s/o……….r/o….. (hereinafter referred to as the VENDOR which expression


shall, unless repugnant to the context or meaning thereof shall mean and include his heirs,
executors, administrators and assigns of the FIRST PART).

AND

Mr. B aged ……….s/o……….r/o….. (hereinafter referred to as the VENDEE/PURCHASER


which expression shall, unless repugnant to the context or meaning thereof shall mean and
include his heirs, executors, administrators and assigns of the SECOND PART).

WHEREAS the Vendor is the absolute owner of the property bearing


no…….admeasuring….situated at………(hereinafter referred to as the said property).

AND WHEREAS the Vendor has agreed to sell the said property to the Vendee at the price
and on the conditions mentioned hereinafter.
107

NOW IT IS AGREED BETWEEN THE PARTIES AS FOLLOWS:

1. The Vendor hereby agrees to sell, transfer and convey the said property in favour of
the Vendee.

2. That the consideration of Rs….is to be paid by the Vendee to the Vendor. Rs…..is to
be paid at the execution of this agreement as earnest money. Rs….on…..(date) and lastly
Rs….at the time of final sale deed.

3. The Vendor acknowledges the payment of Rs….as earnest money paid in


cash/cheque/dd no…drawn on ……(Bank name and Branch) by Vendee.

4. The Vendor shall make out a marketable title of the said property free from
encumbrances and reasonable doubts.

5. The Vendor shall deliver to the Vendee the title deeds relating to the said property in
his possession and power on execution of these presents for inspection and investigation of
the title by the Vendee or his advocate.

6. The Vendor agrees to apply for, obtain and furnish unto the Vendee all such
permissions as may be necessary under the laws for registration of Sale Deed.

7. The Vendor and the Vendee hereby agree that the sale will be completed within six
months from the date hereof.

8. All the taxes, levies etc due and payable against the said property shall be paid by the
Vendor till the completion of sale and thereafter it will be the responsibility of the purchaser.
The Vendor shall handover all the tax receipts etc. duly paid to the Vendee at the time of
completion of sale.

9. The Vendor agrees to handover actual, physical and vacant possession of the said
property unto the Vendee at the time of sale deed.

10. That the expenses towards the payment of stamp duty, registration charges and all
other incidental expenses for agreement for sale and sale deed shall be borne out by the
Vendee.

11. If the Vendor fails to make out the clear marketable title to the said property as
aforesaid then the Vendee will have the right to cancel this agreement by giving atleast fifteen
days notice to the Vendor and after the expiration of fifteen days the agreement shall stand
terminated and the Vendor agrees to return the earnest money to the Vendee.

12. If the Vendee fails to perform his obligations under this agreement within the time
stipulated then the Vendor shall be entitled to cancel this agreement by giving atleast fifteen
days notice in writing to the Vendee. On termination the Vendor will be entitled to forfeit the
earnest money paid by the Vendee.
108

SCHEDULE OF PROPERTY
Details of the property to be mentioned.

IN WITNESS WHEREOF parties hereunto have signed this document on the date and place
first above written in the presence of following witnesses.

VENDOR

VENDEE

WITNESSES: (1)
(2)
*****
109

SALE DEED

THIS SALE DEED is made at …………on this …………day of……….

BETWEEN

Mr…… aged……..s/o……….r/o….. (hereinafter referred to as the VENDOR which


expression shall, unless repugnant to the context or meaning thereof shall mean and include
his heirs, executors, administrators and assigns of the FIRST PART).

AND

Mr……. aged ……….s/o……….r/o….. (hereinafter referred to as the


VENDEE/PURCHASER which expression shall, unless repugnant to the context or meaning
thereof shall mean and include his heirs, executors, administrators and assigns of the
SECOND PART).

WHEREAS the vendor purchased a freehold residential plot measuring 300 sq. yds. and
bearing No.170 in ‘M’ Block of the residential colony known as Greater Kailash Part-II, New
Delhi vide sale deed dated 6.8.85 registered in the office of the Sub-Registrar, New Delhi as
document No. 5560 Addl. Book No. I, Vol. No. 5318 at pages 136 to 152 on 6.8.85.
The aforementioned plot is bounded as under :-
EAST ... ROAD NORTH … PLOT NO. M-168
WEST… SERVICE LANE SOUTH… PLOT NO. M-172

AND WHEREAS the Vendor after purchasing the said plot, got the building plan sanctioned
from the Municipal Corporation of Delhi vide their letter/file No. 400/B/85 dated 13.12.85.
Then the Vendor caused construction thereon of residential building on different floor levels.

AND WHEREAS the Vendor has agreed to sell and the Vendee has agreed to purchase part
of Basement (760 Sq. ft. approx), one front Bed Room of the First Floor (with attached bath
room and small balcony) of the said building on ‘as is where is’ basis for a total consideration
of Rs. 2,50,000/- (Rupees two lacs and fifty thousand only) on the terms and conditions set
forth hereinafter.
NOW THIS SALE DEED WITNESSES AS FOLLOWS:
1. That in pursuance of this agreement, the Vendor has already received from the Vendee a
sum of Rs. 2,00,000/0 (Rupees two lacs only) as part sale consideration, the receipt of which
the Vendor hereby admit and acknowledge.
2. The balance amount of Rs. 50,000/- (Rupees fifty thousand only) has been paid by the
Vendee to the Vendor by cheque No. 010806 dated 29.9.86 drawn on Central Bank of India,
Kalkaji, New Delhi-110019.
110

3. That is view of the amount of sale consideration received, the Vendor hereby grant,
convey and transfer all his rights, titles and interests as held on the date hereof in the said part
of basement and part of First Floor of the said property together with undivided, indivisible
and impartible proportionate ownership rights on the land underneath the said building, on
the terms and conditions contained herein, provided that common staircase, water tanks and
other common facilities, fittings etc. shall be used and enjoyed by the Vendee alongwith other
owners/occupants of the said building.
4. That the Vendor is free to sell the remaining portion (s) of the said residential building to
any other party/parties with common rights for use of common entrances, common passages,
staircases, water tanks, common facilities etc. and the Vendee will not make any objection
thereto.
5. That the Vendor assures that the sale of the said residential portion/domestic storage
space is free from attachment, tenancies gifts, decree, prior sale and religious disputes and if
it is proved otherwise at any time and the Vendee suffers any loss due to any of the
aforementioned reasons, then the Vendor shall be liable to make good the loss thus suffered
by the Vendee.
6. That the Vendee has perused the original title deed, sanctioned plans. Sale plans etc. and
has fully satisfied herself.
7. That the Vendee/occupants shall have no right to use or affix or exhibit any display
boards or any big writing or any sing boards at the external face of the said building.
8. That all expenses of registration, Corporation tax etc. have been borne and paid by the
Vendee.
9. That charges for maintenance/consumption for common amenities such as lights in
staircases etc. and booster and charges for major repairs etc. shall be paid by the owners of all
the portions proportionately.
10. That all taxes from the date of the Agreement to sell the said portion shall be borne and
paid by the Vendee. If assessment of taxes in not made separately for each portion, then all
the owners of the said building shall pay such charges proportionately directly to the
authorities concerned and the Vendor shall in no way be responsible for the same.
11. That the Vendee shall keep the said property in properly repaired and good condition and
shall not do anything or omit to do anything which may endanger or affect the other portions
of the said building or hinder the proper and reasonable use of such portions by the other
owners/occupants of the said building.
12. That the existing use of the said portion of first floor is residential and that on Basement
domestic storage. The Vendee shall neither use the said portion for any illegal, immoral or
commercial purpose nor use it so as to cause annoyance or nuisance to the other
owners/occupants of the said building. Common parts e.g. staircase, passage, driveway etc.
will in no case be used for keeping/chaining pets/does or any other animal/bird or storing
cycles, scooter, motor-cycles etc.
13. The Vendee has also satisfied herself about the soundness of the title of the Vendor and
his power to sell the said portion in the manner stated herein.
14. While building is under construction, the Vendee shall have the right to make at her own
discretion any internal alternations (except structural) in the said portion at her own cost and
expenses.
111

15. That the Vendee shall not construct anything whatsoever upon or over hanging the said
land or the portion of the said land kept uncovered and unbuilt upon the building (including
terrace). The Vendee shall not make any alterations involving structural changes in the said
protion/building. The Vendee shall have no right to use the terrace at the top of the building.
16. That the Vendee and owners/occupants (alongwith servants/workmen) of all the portions
of the said building will have full right for access to booster pump (tubewell), water meter,
sewer tank, overhead water tank etc. at all reasonable times only on notice (except in the case
of emergency) to get their underground and overhead tanks, booster pump etc.
repaired/cleaned.
17. That photostat copies of title deeds etc. have been handed over by the Vendor to the
Vendee and physical, vacant possession of the said floor/portion has also been taken by the
Vendee.
18. That this transaction has taken place at New Delhi. As such Delhi Court shall have
exclusive jurisdiction to entertain any dispute arising out of or in any way touching or
concerning this deed.

SCHEDULE OF PROPERTY
Details of the property to be mentioned.

IN WITNESS WHEREOF parties hereunto have signed this document on the date and place
first above written in the presence of following witnesses.

VENDOR

VENDEE

WITNESSES: (1)
(2)

* ****
112

LEASE DEED

THIS LEASE DEED is made and executed at Delhi on ………(Date)


BETWEEN
Smt. Sudarshan Kaur W/o Sh. Paramjit Singh R/o H. No. M-170, Greater Kailash-II, New
Delhi hereinafter referred to as the LESSOR, which expression shall unless excluded or
repugnant to the context to be deemed to include legal heirs i.e. Mr. Paramjit Singh, Husband
of Lessor herein, successors, executors, administrators, representatives and assigns of the
FIRST PART.
AND
M/s. Dave Thomson Associates (India) Pvt. Ltd. having its registered office at Satyug-Villa
1st Floor, 5, Gurunanak Nagar off Shankarshet Road, Pune through, their Director Mr. H. R.
Srinivas to enter into these presences hereinafter referred to as the LESSEE which expression
unless excuded or repugnant to the context shall include and mean, successors, successors in
interest and assigns of the SECOND PART.

WHEREAS the Lessor has represented to the Lessee that she is the owner/landlady of the
Basement portion of the construction at M-170, Greater Kailash-II, New Delhi admeasuring
760 Sq. ft. approximate covered area in the said premises and is desirous of letting out the
same, hereinafter referred to as the demised premises.
AND WHEREAS the Lessee has offered to take the demised premises on Lease and the
Lessor has agreed to let out the same on the terms and conditions hareinafter specified.

NOW THIS AGREEMENT WITNESSETH AS UNDER:

1. T
hat the Lessor hereby conveys to the Lessee the basement portion of the said premises
admeasuring 760 Sq. ft. Approx for a period of 24 months with effect from 1 st Sept. 1993 at
a monthly, rent of Rs. 4000/- (Rs. Four thousand only) exclusive of Electricity, water charges,
actual bills/ rental charges of Telephone/Fax whenever installed in the demised premises.
2. T
hat the Lease will be for an initial period of 24 months with effect from …….. The rent will
be increased by 10% of the rent payable per annum immediately after expiry of every 12
months.
3.
That both, the Lessor and the Lessee have the right to terminate the Lease even before the
expiry of the Lease period, by giving 3 months written notice.
113

4. T
hat the Lessor shall have the option to renew the Lease for a further period of 2 years at the
terms and conditions as laid out by the Lessor.
5. T
hat on the date of execution of this Lease Deed, the Lessee had paid a sum of Rs. 36000/-
(Rs. Thirty Six Thousand only) vide pay order No….dated….drawn on……….as security
deposit which will be kept by the Lessor for the due performance of the terms and conditions
of this Lease, free of interest. On termination of the Lease, the Lessor shall refund the
security deposit/unadjusted advance rent, if any. In case the Lessor fails to refund the security
Deposit/balance advance rent, the Lessee shall be entitled to charge interest at the rate of 21%
per annum from the date of termination of Lease till the date of refund. Aditionally, the
Lessee shall be entitled to hold possession of the property till the refund of security
deposit/unadjusted advance rent alongwith interest, if any is made without payment of
rent/Lease money. This will be applicable only on production of documentary proof by the
Lessee to the Lessor that all dues pertiaining to electricity and any other charges payable by
the Lessee have been cleared upto date.
6. T
he Lessee covenants with Lessor as under :
i) That the Lessee agrees to pay a monthly rent of Rs. 4000/- (Rs. Four thousand only)
mentioned above on or before 7th day of every month.
ii) That the Lessee agree to carry out minor repairs or replacement of broken parts in
electrical and sanitary installations and glasses himself, but major repairs pertaining to the
structure of the house will have to be done by the Lessor, as and when considered necessary
by him. However, the Lessee shall handover the vacant physical possession to the Lessor on
termination of this Lease in the same conditions as it has been handed over to him.
iii) That the Lessee shall give vacant possession of the premises to the Lessor after the
expiry of the Lease period.
iv) That the Lessee shall duly comply with all the rules and regulations of local authorities
with regard to the use of the premises.
v) That the Lessee shall pay the electricity charges in accordance with the bills at rates
determined by DESU and accordance with bills/demands received from DESU, NDMC
including meter rents etc. The meter readings on the date of possession will be duly recorded.
vi) That the demised premises have been let out to the Lessee for authorised use only.
vii) That the Lessee shall permit the Lessor or his duly authorised agents during reasonable
hours in the day time to enter upon the demised premises for inspection of the Lessor’s
fixtures and fittings therein, and the premises as may be deemed fit by the Lessor.
viii) That the Lessee at the expiry of this Lease shall deliver peaceful and vacant possession
of the demised premises to the Lessor together with the fittings and fixtures installed in good
condition as the same are at present, reasonable wear and tear and damage by fire,
earthquake, civil commotion, act of God excepted including lightening to fittings etc. but
excluding telephones, fax computers and air conditioners. No fixtures, wood work etc. carried
114

by the Lessee shall be removed/damaged at the time of handing over vacant possession of the
demised premises.
ix) That the Lessee shall not make any alteration of permanent nature within the premises
as well as in the open space, without the written consent of the Lessor.
x) That the Lessee shall keep the premises in good tenantable condition and shall not
cause any loss/ damage to it, subject to normal wear and tear of the premises.
xi) The Lessee shall observe and perform at all time during the continuance of the terms
hereby created all the terms and conditions herein as contained.
xii) That the Lessee will not park any motor car or any other vehicle in this outer drive way
of the premises at any time both inside and outside the main gate.

7. That the Lessor hereby covenants with Lessee as follow:-


i) That the Lessor has good right and full power and absolute authority to Lease the
demised premises to the Lessee in manner herein contained.
ii) That the Lessor shall not interfere with the peaceful enjoyment of the property by the
Lessee whether directly on indirectly.
iii) That the Lessor shall observe and perform at all times during the continuance of this
deed, all the terms and conditions contained in the Lease deed by virtue of which the Lessor
is holding the said premises and shall keep the Lessee indeminified against any breach or
consequences thereof.
iv) That the Lessor shall pay the taxes whether Municipal or otherwise and failing to pay
any such amount when the same shall fall due for payment, the Lessee shall be entitled to pay
the same on behalf of the Lessor and to deduct the amount so paid from the rent payable by
the Lessee to the Lessor hereunder.
v) That the Lessor shall comply with, at his own cost, all requirements and regulations of
the Municipals or other lawful authority concerning the demised premises to the observed by
the owner/landlady.
8. It is hereby mutually agreed and declared by the parties hereto as follows :-
i) In the event of the demised premises or any part thereof being destroyed or damaged by
fire, earth quake, flood, war, air raid, civil commotion, riots or any act of God or irrestible
force during the period of the Lease, this Lease shall at the option of the Lessee be
terminated. And in the event of the Lessee being desirous of any part thereof as the case may
be so as to enable the Lessor to repair the damage or reinstate the same and the rents hereby
reserved shall remain suspended till the demised premises or any part thereof as the case may
be reinstated or restored to its former state and possession if delivered over to the Lessee for
the remaining part of this Lease, if any.
ii) That in the event of any dispute or difference arising out of this deed, the matter will be
referred to the Arbitrator to be appointed by consent of both the parties and his decision will
be binding on both the parties.
115

iii) That the parties to the agreement have specifically agreed that considering the location,
accommodation, and condition of the said property, the Lease rent is fair rent and in
consonance with the property, market rates.
iv) That the terms and conditions of this agreement as stated above shall be binding on
both the parties.
v) That the Lease shall automatically come to an end on the expiry of the Lease period.
The peaceful and vacant possession of the demised premises will be deemed to have been
handed over by the Lessee to the Lessor.
vi) The cost of preparation of the original Lease and duplicate thereof and stamps and
registration fee and in connection with the same shall be borne and paid by the Lessee.
vii) The Lessor shall retain the original of the Lease deed and the Lessee the duplicate
thereof.

IN WITNESS WHEREOF, these presents have been executed by the parties hereto on the
day, month and year first mentioned herein above in presence of witness:
LESSOR
LESSEE
Witnesses: (1) (2)

Note: Read Section 105 to Section 111 of the Transfer of Property Act, 1882.
*****
116

MORTAGAGE DEED

THIS DEED OF MORTGAGE is executed at Delhi on this …..day of …….


BY

Mr. A son of Sh. ____ resident of ____ hereinafter called the MORTGAGOR, which
expression shall mean and include his heirs, legal representatives, executors, administrators
and assigns of the First Part;
IN FAVOUR OF
M/s ABC Ltd., a company incorporated under the Companies Act having its registered office
at ___ hereinafter called the MORTGAGEE, which expression shall mean and include its
successors.
WHEREAS the Mortgagor has vide sale-deed dated 5.1.1988 purchased a vacant residential
plot bearing Municipal No. A-25 situated at Ashok vihar , Delhi
AND WHEREAS, the Mortgagor wants to construct a residential building on the aforesaid
vacant plot of land;
AND WHEREAS the Mortgagor does not have enough financial means to undertake the
construction of the residential building on the aforesaid plot of land;
AND WHEREAS the Mortgagee, with whom the Mortgagor is presently employed, has
agreed to advance a loan of Rs.2,00,000/- ( Rupees Two lakhs only ) to the Mortgagor, and
which loan shall be utilized by the Mortgagor towards the construction of a residential house
on the above vacant plot of land.
AND WHEREAS in consideration of the aforesaid amount of Rs. 2,00,000/- borrowed by the
Mortgagor from the Mortgagee, the Mortgagor has agreed to execute this Mortgage deed of
the vacant plot of land in favour of the Mortgagee.

NOW THIS DEED, THEREFORE WITNESSES AS UNDER:


1. The Mortgagor admits and acknowledges that he owes a sum of Rs.2,00,000/- to the
Mortgagee on the basis of promissory note and receipt dated ….. executed by him in favour of
the Mortgagee.
2. The Mortgagor shall be lible to pay interest on the above stated principal sum of Rs.
2,00,000/- @12% per annum form the date of the loan until payment and in this manner the
total charge of the referred property of the Mortgagor shall be the principal sum of Rs.
2,00,000/- and interest accruing thereupon.
3. The Mortgagor will pay to the Mortgagee the said sum of Rs. 2,00,00/- in equal
monthly installment of Rs.2000/- per month on or before the ………. and in the meantime
interest thereon or on such thereof as shall for the time being remain unpaid, at the rate of
12% per annum by half yearly payments on the ………. and the ……… in each year.
117

4. That any interest not paid on the due dates shall be treated as principal and added to the
principal sum herby secured and bear interest at the rate and payable on the half yearly days
aforesaid.
5. In consideration of the aforesaid, the Mortgagor hereby transfer by way of simple
mortgage to the Mortgagee, a vacant residential plot bearing Municipal No. A-25, Ashok
Vihar, Delhi.
6. By this deed, the Mortgagor also mortgages to the Mortgagee any building and all other
permanent structures that shall be built on the aforesaid vacant plot by the Mortgagor.
7. The Mortgagor hereby covenants with the Mortgagee as follows :
(i) That the said premises are free from all encumbrances and the Mortgagor undertakes
that until the entire principal amount and interest, if any due, is not paid back to the
Mortgagee, the Mortgagor shall not create any fresh mortgage, charge, pledge, or in any other
manner, alienate the corpus or his interest in the aforesaid property to any third person.
(ii) If the Mortgagor fails to pay the sum with interest after it has become payable under
the provisions of the this deed, the Mortgagee shall, in addition to any other remedy available
to him under the law, have the power to sell without the intervention of a Court the mortgaged
property or any part thereof for the realization of the money due to it hereunder.
(iii) During the continuance of the Mortgage, the Mortgagor shall keep any building or
permanent structure erected on the aforesaid plot of land insured against damage by fire in the
name of the Mortgagor with an Insurance Company and shall punctually pay all premium on
such insurance and shall produced to the Mortgagee on demand, the policy of such insurance
and the receipt for the premium so paid.
Provided always, that if the Mortgagor shall make default in any of the above matters, the
Mortgagee may, in its discretion, insure and keep insured all or any of the said building and
permanent structures to the amount aforesaid and that the expenses of doing shall be repaid to
it by the Mortgagor on demand, and until so paid shall be added to the principal money
hereby secured and bear interest accordingly and be secured in the like manner as the said
principal.
IN WITNESSES WHEREOF the Mortgagor has executed this document on the date, first
above written.
MORTGAGOR

MORTGAGEE
WITNESSES

1.
2.
*****
118

PARTNERSHIP DEED
THIS DEED OF PARTNERSHIP is executed at New Delhi on this ……day of ……..
BETWEEN
Sh. X S/o _____ R/o____, hereinafter called ‘THE FIRST PARTY’ which expression shall
mean and include his heirs, successors, executors and legal representatives.
AND
Sh. Y S/o Sh. ____ R/o ______, hereinafter called ‘THE SECOND PARTY’ which
expression shall mean and include his heirs, successors, executors and legal representatives.
WHEREAS the First Party is in occupation as a tenant of property measuring 1000 sq. ft. on
the ground floor bearing No. E-1 Ram Nagar, Delhi.
AND WHEREAS the First Party is desirous of carrying on the business of interior decoration
and the Second Party, being experienced in this trade, has approached the First Party to run
this business with him jointly in partnership.
AND WHEREAS the parties have agreed to commence and run the business of interior
decoration, furnishing, manufacture and sale of furnishing, manufacture and sale of furniture,
soft furnishing and accessories in partnership.
NOW, THEREFORE, THIS DEED WITNESSES AS UNDER:
1. The name and style of this partnership business shall be M/s XYZ.
2. The business of this partnership shall be considered to have commenced on………
3. That the principal place of business of this partnership shall be at E-1 Ram nagar, Delhi.
However, the same may be shifted or carried on elsewhere as well with the mutual consent of
both the parties from time to time.
4. That the business of the partnership shall be interior decoration, furnishing, manufacture
and sale of furniture, soft furnishing and accessories. However, the parties will also be
entitled to extend their activities into business or manufacturing of any other item as well.
5. The shares of the parties in the profits and losses shall be as follows :
i) First Party – 51% ii) Second Party – 49%
6. The initial capital has been contributed by both the parties by investing a sum of Rs.
15,000/- each. If and when more funds are required for the business, the partners shall invest
the same. However, any capital investment of the partners shall not carry any interest. In case
loans or deposits are raised from outside i.e. friends and relations of the partner or the
financial institutions then only those loans or deposits, which are taken with the written
consent of both the partners and are entered in the books of accounts of the partnership, shall
be binding on the firm.
7. The partnership shall maintain regular books of accounts in accordance with the customs
of trade and all dealings of the partnership shall be duly recorded in the same. The account
books etc. shall be maintained in the place of business at . E-1 Ram Nagar, Delhi.
119

8. Each of the partners shall be entitled to withdraw a sum of Rs. 2000/- every month which
shall be adjustable in the final profit and loss account to be prepared every year.
9. The First Party shall also be entitled to withdraw a sum of Rs. 5000/- per month towards
the rent he is paying to the Landlord in respect of the portion of property no. E-1 Ram Nagar,
Delhi
10. The tenancy rights in respect of property no. E-1 Ram Nagar, Delhi shall always vest in
the First Party and whenever the partnership is dissolved for any reason whatsoever, the
Second Party shall not be entitled to any right, title or interest in the same.
11. That the partnership shall maintain proper books of accounts in the normal course of
business at the principal place of its business and the same shall always be open for inspection
to the partners.
12. That the first accounting period of the partnership shall close on 31st March… and
thereafter the financial year, shall run from 1st April every year to 31st March of the
subsequent of the English calendar.
13. That the bank accounts of the partnership and / or its branches shall be operated under the
signatures of any of the partners.
14. That at the close of the accounting period / year, a trial balance, profit and loss account
and balance-sheet etc. shall be prepared and the profit and loss in the ration enumerated above
shall be credited / debited to the capital account of the partners.
15. That either of the parties would not be entitled to carry on similar or competitive trade
individually or in partnership and in any other manner.
16. The partnership shall be at Will. However, whenever any party intends to dissolve the
same or retire from the same, he shall give an advance notice of 15 days to the other party and
during the period of notice, profit and loss account, balance sheets shall be completed to
finalize the accounts in between as partiers as well as with the outsiders.
17. That in the event of any dispute arising between the parties with respect to any clause of
this document or the working of the partnership or for anything indicated thereof, the same
shall be decided by arbitration in accordance with the provisions of the Arbitration Act and by
no other process.
18. That in all other matters not provided herein, the partnership shall be governed by the
Indian Partnership Act as applicable from time to time.
IN WITNESS WHEREOF the parties have signed this document on the date first above
written in presence of the following witnesses.
FIRST PARTY
SECOND PARTY

WITNESSES (1) (2)

*****
120

DEED OF DISSOLUTION OF PARTNERSHIP


THIS DEED OF DISSOLUTION is executed at Delhi on this ……. day of …………
BETWEEN
A son of ________ resident of ____________, hereinafter called ‘THE FIRST PARTY’,
which expression shall, unless repugnant to the context or meaning hereof, mean and include
his heirs, successors, executors and legal representatives.
AND
B son of ________ resident of ____________, hereinafter called ‘THE SECOND PARTY’,
which expression shall, unless repugnant to the context or meaning hereof, mean and include
his heirs, successors, executors and legal representatives.
WHEREAS the parties have been carrying on business in partnership under the name and
style of ‘M/s ABC’, from premises bearing No. . E-1 Ram Nagar, Delhi, on the basis of a
partnership deed executed between them on …………..
AND WHEREAS it has been mutually decided by the parties hereto to dissolve this
partnership and to reduce the terms of this dissolution into writing;
NOW, THEREFORE, THIS DEED WITNESSES AS UNDER:

1. That the partnership constituted by the parties through the partnership deed dated …….on
the basis of which business under the name and style of ‘M/s. ABC’ was carried at premises
no. E-1 Ram Nagar, Delhi has been dissolved with effect from today i.e……..
2. That all the accounts of the partnership have been agreed and understood by the parties
and all trading results, profits and losses and personal debit and credit entries and balances,
have been checked and accepted by them as per the account books.
3. That all records, account books, etc. of the dissolved partnership have been delivered to
the First Party hereto, who shall be responsible to notify all concerned authorities about the
fact of this dissolution and shall also be responsible to get the assessments, if any pending,
completed.
4. That the First Party shall produce the account books of the partnership, whenever
reasonably required by the Second Party, either before the assessment authorities or before
any other authority.
5. That the partners shall be liable for their individual taxes. However, any taxes or
payments raise against the dissolved partnership, shall be met by the individual parties, in
accordance with his ratio of profits and losses in terms of the partnership deed.
6. That none of the parties shall be liable for any liability raised by the other in the name of
the erstwhile partnership firm.
121

7. Without prejudice to any rights and remedies herein contained, each of the parties hereto
hereby releases and discharges the other from all actions, proceedings, claims and demands
on account of the said partnership.

8. That it is mutually agreed if any dispute arises between the parties in relation to present
Dissolution Deed then the same shall be referred to the Sole Arbitrator to be appointed by
continuing partner under the provisions of Arbitration and Conciliation Act, 1996, and place
of arbitration shall be at New Delhi.

IN WITNESS WHEREOF the parties have signed this document on the date first above
written in presence of the following witnesses.
FIRST PARTY
SECOND PARTY

WITNESSES (1) (2)

*****
122

RELINQUISHMENT DEED

THIS DEED OF RELINQUISHMENT is executed at Delhi on this 3rd day of July, 1990

BY

1. Smt. Avadh wife of Sh.__________ daughter of late Sh. X, Resident of


____________

2. Smt. Bala wife of Sh.__________ daughter of late Sh. X, Resident of ____________


3. Smt. Chand wife of Sh.__________ daughter of late Sh. X, Resident of
____________

4. Sh. Devi lal Son of late Sh. X, resident of _____ Delhi.

Hereinafter called the RELEASORS which expression shall, unless repugnant to the context
or meaning hereof, mean and include their heirs, successors, legal representatives and
executors, of the FIRST PART.

IN FAVOUR OF

Smt, Ragini, wife of late Sh. X, resident of _________, Delhi, hereinafter called the
RELEASEE which expression shall, unless repugnant to the context or meaning hereof, mean
and include her heirs, successors, legal representatives and executors, of the SECOND PART.

WHEREAS late Sh. X was the sole and absolute owner of property bearing No.____, Delhi
consisting of double Storey house built over an area of 200 sq yds;
AND WHEREAS the said Sh. X expired on 25th April, 1990;
AND WHEREAS releasors No. 1 to 3 are the daughters of late Sh. X Releassor No. 4 is the
son and the Releasee is the wife of late Sh. X. and each has got 1/5th share in the above
mentioned house according to the law of inheritance;
AND WHEREAS besides the Releasors and the Releasee, there is no other legal heir of the
deceased or anybody else is entitled to or claims any right, title or interest in the above
mentioned property;
AND WHEREAS the Releasors are desirous of giving up their 4/5th share in the above
mentioned property in favour of the Releasee on account of natural love and affection without
receipt of any consideration amount from her.

NOW THIS DEED OR RELINQUISHMENT WITNESSES AS UNDER:


1. That the Releasors voluntarily, without any outside pressure from any side and in
their full senses give-up and release all their right, title and interest in property No._____,
Delhi alongwith the land beneath the same measuring 200 sq. yds in favour of the Releasee
123

without taking or receiving any consideration from them to the extent of their 4/5 th share and
now the Releasee is the absolute and the sole owner of the above mentioned property. (4/5 th
share of the Releasors and 1/5th share of the Releasee herself).
2. That the Releasors, their heirs, successors and assigns have been left with no claim,
title or interest in the property hereby relinquished and the Releasee is the sole and absolute
owner thereof.
3. That the possession of the above mentioned property is exclusively with the Releasee
and the Releasee is entitled to continue the same.
4. That the Releasee is fully entitled to get the above mentioned property mutated and
transferred in her name on the basis of this deed of Relinquishment.
5. That the original sale-deed and other relevant papers regarding the above mentioned
property are with the Releasee.
IN WITNESS WHEREOF the Releasors ad the Releasee have set their respective hands to
this deed of Relinquishment at Delhi on the date mentioned above.

RELEASORS

RELEASEE

WITNESSES :

1. Mr. P son of ______


Resident of _______

2. Mr. Q son of ______


Resident of _______

*****
124

GIFT DEED

THIS GIFT DEED is made and executed on this ……………….day of Month of ………… of
the Year …………, at…………………………….

BETWEEN

(Name) son/daughter/wife of (Father’s/Husband’s name), Age……Marital Status………,


(Profession), (Nationality), Resident of ………………………………holding Aadhar card
No…………………(hereinafter called the DONOR) of the one part.

AND

(Name) son/daughter/wife of (Father’s/Husband’s name),, Age……Marital Status………,


(Professional Status), ( Nationality), Resident of ………………………………holding
Aadhar card No………………… (hereinafter called the DONEE) of the other part.

The expressions of the DONOR and the DONEE shall mean and include their respective
heirs, successors, executors, nominees, assignees, administrators and legal representatives etc.

AND WHEREAS the DONOR is the owner and in possession of the property having been
purchased/acquired vide registered sale deed as document No. ………………, Addl. Book-I--
--, Vol. No…………pages ...to... ., on date ……………………duly regd. in the office of
SR………

(This recital should be about how the vendors have acquired the title of the property.)

AND WHEREAS the above PROPERTY, more particularly described in schedule


hereinbelow, is free from all sorts of encumbrances such as liens, charges, claim, liabilities,
acquisitions, injunctions or attachments from any Court of Law, gifts, mortgages, demands,
notices, notifications, legal disputes, difference, prior sale and flaws etc. etc. and the DONOR
is fully entitled to dispose of the same.

AND WHEREAS the DONOR has great love and affection for the DONEE being
his/her…….(Relation).

AND WHEREAS the DONOR has agreed to GIFT, without any monetary consideration the
property described in Schedule hereinbelow UNTO the DONEE and the DONEE has also
agreed to accept the same.

NOW THIS GIFT DEED WITNESSETH AS UNDER:


(1) That the DONOR does hereby donate/gift the property,______________________
__________, UNTO _________________ S/O, D/O, W/O __________________, R/O,
125

______________ on account of great love and affection for him/her being


HIS/HER_______________ (Relation)

(2) The possession of the aforesaid PROPERTY UNDER DONATION/GIFT has been
handed-over/ delivered to the DONEE by the DONOR.

(3) That the DONEE has now become the absolute and exclusive Owner with all rights in the
aforesaid PROPERTY UNDER DONATION/GIFT from today and shall also enjoy all rights
of Ownership etc. therein.

(4) The DONOR has now been left with no right, title, interests or liens etc. whatsoever of
any sort in the aforesaid PROPERTY UNDER DONATION/GIFT henceforth after the
execution/ registration of this GIFT DEED. The property in question is free from acquisition
neither by the Govt. nor by any other authority.

(5) That the DONEE with HIS/ HER own funds shall get the PROPERTY UNDER
DONATION/GIFT transferred/mutated in his favour in the records of Rights of Revenue
Department on the basis of this GIFT DEED and DONOR hereby conveys his No Objection
for the mutation of the property herein below mentioned under schedule, in the name of the
DONEE.

(6) That the DONEE has accepted the GIFT of the said PROPERTY UNDER DONATION /
GIFT DEED and has also taken-over the possession of the same from the DONOR.

(7) That the market value of the above mentioned PROPERTY UNDER DONATION/GIFT
has been assessed at Rs.___________ (Rupees_______________ only), as per Notification
published in Official Gazettee, Series; _____ No. __________. Dated: ___________

(8) That all the expenses of the GIFT DEED such as Stamp Duty, and registration Fees etc.
have been borne and paid by the DONOR/ DONEE.

(9) That all future taxes, cesses, rates or any other Govt. or Municipal dues and demands in
respect of the above mentioned PROPERTY UNDER DONATION/GIFT shall be borne and
paid by the DONEE.

(10) That all the Title Deeds/papers including previous title deed (in originals) relating to the
Gifted PROPERTY, herein below mentioned UNDER DONATION/GIFT have been handed-
over/delivered to the DONEE by the DONOR.

SCHEDULE
(The complete description of the Property shall be stated here which should include Survey
Nos and Sub Division incase of Villages / Chalta Nos, P.T. Sheet Nos incase of Cities, Area,
126

and Inscription/Description Nos along with Matriz Nos if avalaible) an boundaries of the
Properties)

East:
West:
North:
South:
DONOR

DONEE

WITNESSES :

1. Mr. P son of ______


Resident of _______

2. Mr. Q son of ______


Resident of _______

*****
127

NOTICE OF EJECTMENT THROUGH ADVOCATE


(SECTION 106 OF THE TRANSFER OF PROPERTY ACT, 1882)
A… GUPTA Ch. No. …, Delhi High Court
Advocate New Delhi.
Ph.011- 2338XXXX

REGD A/D / U.P.C.


Dated……………………
To
……………………..
Sub: NOTICE UNDER SECTION 106 OF THE TRANSFER OF PROPERTY ACT,
1882 FOR EJECTMENT

Dear Sir,
Under the instructions from and on behalf of my client Sh. ……S/O……R/O….(hereinafter
referred to as ‘my client’), I serve you with the following notice :
1. That the house bearing no…….situated at…..in……city is owned by my client. That
you approached my client and requested my client to give the said property on lease to you.
2. That my client has inducted you as the tenant in respect of the said property. That the
agreed monthly rent for the said property is Rs……..per month.
3. I hereby give you notice that you are to quit and vacate the said property below of
which you are now in possession of as a monthly (or yearly) tenant under my said client
immediately on the expiry of the last day of………….
4. On and from the first of…..(month next following the last day of the month on which
the tenant is required to quit) the tenancy hereto before subsisting shall terminate and all
relationship of landlord and tenant between my client and you shall absoulutely cease.
5. You are requested to deliver vacant possession of the said premises unto my client on
that date as stated above.
6. In case of your failure to quit the premises as desired, you will be considered as a
trespasser and ejected in due course of law and you will have to pay damages at rate of
Rs………..per…… until you are evicted.
Yours faithfully
Advocate
Copy kept in my office for future reference and use.
*****
128

NOTICE OF SUIT UNDER SECTION 80 OF THE CODE OF CIVIL PROCEDURE,


1908 AGAINST THE CENTRAL GOVERNMENT

A… GUPTA Ch. No. …, Delhi High Court


Advocate New Delhi.
Ph.011- 2338XXXX

REGD A/D / U.P.C.

Dated……………………

To
The Secretary
Government of India
Education Department
Central Secretariat
New Delhi

Sub: NOTICE UNDER SECTION 80 OF THE CODE OF CIVIL PROCEDURE, 1908

Dear Sir,

Under instructions from my client……………………an employee in Section…………..of


the Department of Education, Central Secretariat, New Delhi I hereby give you notice under
S.80 of the Code of Civil Procedure and state that my aforesaid client intends to sue the
Union of India owing and representing the Department of Education, Central Secretariat,
New Delhi after the expiry of two months after the service of this notice unless reliefs
claimed herein below are granted to my said client within the said period of two months. The
following particulars of the nature of the claim, cause of action and reliefs claimed are given
below:
(1) Name and description Sri……………..son of………….by
of the Plaintiff occupation…….residing at……….

(2) Cause of Action (a) ………..was an employee……….section of the department of


education, Government of India, Central Secretariat, New Delhi. He has been dismissed from
service illegally with effect from………..
(b) …………….. was charged falsely for an alleged theft in the office
on…………..and charge sheeted and ultimately dismissed from service with effect
from……….
(c) Cause of action for the suit arose on…………….the date of dismissal.
129

(3) Reliefs sought for (a) Reinstatement of Sri……………………


(b) Recovery of salary for the period of………..to……..

Yours faithfully
Advocate
Copy kept in my office for future reference and use.
*****
130

NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881

A… GUPTA Ch. No. …, Delhi High Court


Advocate New Delhi.
Ph.011- 2338XXXX

REGD A/D / U.P.C.


Dated:
To,
Sh. …………….,
………… Connaught Place,
New Delhi -110001
And also at:
………….
Vikas Puri
New Delhi-110018

SUB: LEGAL NOTICE UNDER SECTION 138 OF THE NEGOTIABLE


INSTRUMENTS ACT, 1881

Dear Sir,

Under the instructions from and on behalf of my client Sh. …………., Daryaganj, New
Delhi-110002 (hereinafter referred to as ‘my client’), I serve you with the following notice:
1. That my client is engaged in the business of trading of sewing machines. During the
ordinary course of business you addressee purchased from my client the said sewing
machines for which you issued a cheque bearing no…..dated….. of United Bank of India,
Khanpur Branch, Khanpur Extn. New Delhi-110062 for a sum of Rs.2,45,700/-, as part
payment towards discharge of your liability which you addressee had incurred by way of
purchasing aforesaid sewing machines from my client.
2. That the above-mentioned cheque was deposited by my client with his banker HDFC
Bank Ltd., 28, Punjabi Bagh, New Delhi, for encashment on……(Date)
3. That the said cheque was returned to my client with an endorsement “Dishonoured
for insufficiency of funds.” That the dishonoured cheque along with the cheque returning
memo of bank dated…….was returned to my client.
5. That for the first time my client came to know about the dishonouring of the said
cheque on……...
6. That on account of the dishonouring of the cheque you addressee are guilty of
committing offences punishable u/s 138 of the Negotiable Instruments Act 1881 (as amended
up to date).
131

Now through this legal notice I hereby call upon you addressee to make the payment of
Rs.2,45,700/-, amount of the said dishonoured cheque, within fifteen days of the receipt of
this notice, failing which my client shall be constrained to take legal action against you by
way of civil as well as criminal proceedings, at your risk as to cost and consequences
resulting therefrom.

Name of the Advocate …………… Jangpura Extn.


Advocate New Delhi-110019
Ph.011- 2437XXXX

Yours Sincerely
Advocate

Copy kept in my office for future reference and use.


*****
132

REPLY TO LEGAL NOTICE

B… GUPTA Ch. No. …, Delhi High Court


Advocate New Delhi.
Ph.011- 2338XXXX

REGD A/D / U.P.C.


Dated:

To,
Sh. ………..Advocate,
……, Delhi High Court,
New Delhi-110001

SUB: REPLY TO YOUR LEGAL NOTICE U/S 138 NEGOTIABLE INSTRUMENT ACT,
DATED……….

Dear Sir,

Your legal notice dated 09.06.2015 has been placed before me by my client Sh.
………………….at Connaught Place, New Delhi -110001 and I, the undersigned, have been
instructed to reply to your said notice by my client on his behalf as under:

A. That, at the outset you are being informed that the notice under reply, you have sent
on behalf of your above said client, contains false and frivolous facts provided by your said
client against my client, thereby your notice under reply deserves to be withdrawn, with
unconditional apology by your client, because the claim made by you is without any basis and
is based upon concocted facts, as no claim is made out against my client and in favour of your
client.
B. That, in fact, my client did not place any order for supply of any machines
whatsoever, as alleged by you. But, with a view to dispose off your old stock of outdated
machines, you requested my client to place them at his shop for sale. Keeping in view old
relations my client agreed to your client’s proposal, which was subject to the condition that
payment would be made only after those machines were sold out. However, those machines
were not only outdated, but were also mechanically faulty, because of which till date they are
lying with my client, which your client is at liberty to take back with two days’ prior notice. It
is pertinent to mention here that the cheque in question was handed over by my client blank
and the same was to be used only upon instructions of my client, after he could sold out your
all those machines.
C. That, however, your client has cheated my client by misusing that cheque which is
not in the handwriting of my client. As a matter of fact, your client has committed fraud in the
matter and, consequently, is liable to be proceeded under the relevant provisions of law.
133

D. That, therefore, it is denied that the cheque in question was issued by my client to
your client in discharge of any liability. Rather, your client has misused that blank cheque
with ulterior motives, after forging the same.

REPLY ON MERITS:

1. That the contents of para 1 of your legal notice are wrong and denied and whatsoever
is stated above is reiterated. It is denied that my client purchased from you client any
machines whatsoever. Rather, my client helped your client to keep your machines in his
godown/shop for disposal. Therefore, it is denied that the cheque in question was issued in
discharge of any liability towards my client, as alleged in this para.
2. That the contents of para 2 are denied for want of knowledge. However, it is
reiterated that my client ever issued any cheque, in the manner as alleged by you.
3. That, in reply to para 3 of your legal notice, what is stated above is reiterated. It is
submitted that your client was not entitled to use that cheque for encashment and deposit the
same in his bank.
4. That the contents of para’s 4 &5 are denied for want of knowledge. However, it is
reiterated that any cheque was issued in discharge of any liability towards my client to your
client.
5. That the contents of para 6 need no comments. However, it is denied that my client
committed any offence whatsoever.

In view of aforesaid facts and circumstances, you are being advised to further advice your
client to withdraw the said notice under reply and further advise him not to drag my client in
any frivolous litigation, failing which my client shall be constrained to contest the same,
besides proceeding against your client under the relevant provisions of law, at the costs, risks
and consequences of your client only.

Yours Sincerely,
Advocate

Copy kept in my office for future reference and use.

*****

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