AGREEMENT TO CONSTRUCT A MULTI-STOREYED BUILDING

Memorandum of agreement made this 5th day of May 2000 between AB son of MN by caste………..by occupation………….by religion………..residing at……hereinafter referred to as the VENDOR (which term or expression shall unless excluded by or repugnant to the subject or context by deemed to include his heirs, executors, administrators, representatives and assigns) of the one part and CD son of PQ by caste……….by occupation…….. residing at……..hereinafter referred to as the purchaser (which expression shall unless repugnant to the subject or context be deemed to include its successors representatives and assigns) of the other part:
Whereas the vendor as the sole and absolute owner is absolutely seized and possessed of or otherwise well and sufficiently entitled to all that the building with land and premises situate on the piece or parcel of land containing by estimation an area of 6 cottahs 6 chittacks and 6 square feet be the same a little more or less being premises No…….. Mumbai, more, fully and particularly mentioned and described in the Schedule hereunder written and hereinafter for the sake of brevity collectively referred to as the said property. The premises is partly occupied by the vendor and
his family and partly let out to tenants who pay a sum of Rs………as rent per month inclusive of taxes.
And whereas the purchaser approached the vendor with a proposal for construction of a multi-storeyed building on the site according to modern taste, design and architecture at their costs after demolition of the existing old building which will be sold to the purchaser who will pay in exchange of and as consideration for such sale (i) initially a token sum of Rs………as earnest money; (ii) a recurring sum of Rs………per month on the 7th of every month as compensation for loss of rent of the property to be demolished from the date of sale until completion of the building and delivery of possession of the flats as hereunder mentioned; (Hi) allow the vendor and his family alternative accommodation in a flat measuring at least 500 square feet (carpet area) in the building promoted by his sister concern, viz,….. at premises No……..free of rent and other charges; and
(iv) finally allot and convey two flats as ownership flats at their respective book values in the said multi-storeyed building when completed duly equipped with all fittings and fixtures.
Now this memorandum witnesseth and it is hereby agreed by and between the parties hereto as follows:
1. The vendor will sell and the purchaser will purchase all that the said property being premises No……….in the town of………as it is and where it is more fully and particularly mentioned and described in the Schedule hereunder written and the inheritance thereof in fee simple in possession or an estate equivalent thereto free from all encumbrances attachments trusts liens and other defects of title but subject to a good and marketable title to the reasonable satisfaction of the purchaser's solicitor
(name) ……….. at or for the consideration as hereinbefore and hereunder stated, viz. (i) initial payment of Rs…………as earnest money to be paid in cash simultaneously with the execution of this agreement;
(i) a further recurring payment of Rs	per month as compensation for loss of rent of the property pending demolition thereof and construction of the multi-storeyed building such payment shall be regularly made on the 7th of each month until delivery of possession of the flats; 
(ii) free accommodation to the vendor and his family in a flat measuring 500 square feet (carpet area) in the building constructed by his sister concern (name) at premises No……..; and (iv) finally allot and convey at their book values two residential self-contained flats, one in the ground floor and the other in the first floor of the building to be constructed, as ownership flats or apartments fully completed and equipped and habitable in all respects with all electric and sanitary fittings, fixtures and appurtenances, separate electric meter and connection measuring at least 800 square feet (carpet area) both to be delivered to the vendors on or before 15th day of May 2002 and each shall consist of at least the following accommodation, viz. (a) four bed with attached bath W.C. shower; (b) one kitchen and store, drawing room; (c) dining hall; (d) servants room; and (e) car parking space 50 square feet with right of ingress thereto and egress therefrom through the staircase and main entrance facing the municipal road.
2. The vendor shall within one week from the date of the execution of this agreement deliver to the purchaser's advocates on record on their accountable receipt all the original documents of title relating to the said property as are in possession of the vendors for investigation of title on behalf of the purchaser.
3. The vendor shall duly answer all requisitions and objections as to the title of the property as may be made from time to time by the purchaser's Advocate and also make out a good and marketable title thereto to the reasonable satisfaction of the said Advocate free from all encumbrances, attachment debts charges, trust, lien etc. when the purchaser's advocate shall inform the vendor within a fortnight from that date about his acceptance or rejection of the title of the vendor in respect of the said property subject however to the result of further searches and enquires and shall in case of approval of the title send to the vendor a draft of the proposed conveyance relating to the said property to enable the vendors to apply for and obtain necessary Income-tax Clearance Certificate under s. 230A of the Income Tax Act. The vendor shall make any other party or parties if any so required join in the conveyance so as to convey an absolute title to the purchaser or to redeem any charge or encumbrances.
4. The purchase shall be completed within one month from the date of obtaining of the Income-tax Clearance Certificate under s. 230A of the Income Tax Act by the Vendor and time for this purpose be deemed to be the essence of contract when the vendor shall execute and register a conveyance or conveyances in respect of the said property and deliver peaceful vacant possession of the portion thereof in his occupation to the purchaser and the rest by attornment of tenancy. The purchaser shall bear and pay all costs of and incidental to stamp and registration of the conveyance.
5. The purchaser shall thereafter but before any action is taken for demolition of the existing building provide the vendor and his family with alternative accommodation in the building at……………..promoted by his sister concern comprising at least a carpet area of 500 square feet for which the vendor shall not be liable to pay any rent or taxes or make any other contribution on any account whatsoever.
6. The purchaser shall thereafter be entitled to recover vacant possession of the entire premises by eviction of the tenants and other occupiers by legal process or by negotiations and settlement of terms as regards their rights and claims and demolish the existing building.
7. The purchaser shall carry out the demolition work in a most skilful manner with all precautionary safety measures without causing any damages, injury or other mischiefs to any other building or buildings or loss of life or limb of the people residing at the locality and shall remain fully liable for all his acts, deeds, things and error in judgment on that account.
8. In the event of the title of the vendor is not accepted by the purchaser's Advocate or the said property not being found free from attachments or encumbrances whatsoever or subject to any scheme of acquisition or requisition or any other defect as regards title or in the event of the vendor failing to procure the necessary income tax clearance certificate under the provisions of s. 230Aof the Income Tax Act within a period of three months from the date of delivery of draft conveyance unless the time for that purpose is extended by mutual consent the purchaser shall be entitled to rescind this agreement when the vendor shall refund the earnest money of Rs……….with interest at 12% per annum and shall further pay a sum of Rs. 5,500 as costs of and incidental to this agreement and searches and investigation of title when the proposed deal shall stand cancelled.
9. Immediately with the execution of this agreement the vendor will allow the purchaser to instal and fix a board on the said property who shall also publish advertisement inviting offers for purchase of the flats and/or apartments to be constructed on the site of the said property but will not charge any rent or occupation charges for fixing board on the site of the said property nor raise any objection to the same. The purchaser shall not conclude any final deal with any such party before completion of the conveyance.
10. After the execution of this agreement and even prior to the completion of the sale the purchaser shall be at liberty to prepare or cause to be prepared a plan and plans for constructing a multi-storeyed building or buildings on the site of the said property by demolition of the existing structure standing thereon and the vendors shall as and when necessary sign such plan or plans and other papers and writings that may be required for the purpose of obtaining sanction of such plan or plans by the purchaser from the Corporation of Mumbai or obtaining permission from the Competent Authority under the provisions of the Urban Land (Ceiling and Regulation) Act 1976, it being expressly agreed that all costs, charges and expenses for obtaining sanction of such plan or plans whatsoever will be borne and paid by the purchaser and the vendor will not be liable for reimbursement of such costs, charges and expenses for any reason whatsoever.
11. The vendor declares that the quantum of vacant land contained in the said property is within the ceiling limit as prescribed under s. 27 of the Urban Land (Ceiling and Regulation) Act 1976 and it is not necessary to obtain any further permission under the provisions of the Urban Land (Ceiling and Regulation) Act 1976.
12. If at any time before the completion of the purchase it so appears that the said property or any portion thereof is affected by any scheme of alignment of the Corporation of Mumbai, or Mumbai Improvement Trust, or Mumbai Metropolitan Development Authority, or is notified to be acquired or requisitioned by the Government or any other public body or authority, the purchaser shall have the option of rescinding this agreement and upon such rescission the vendors shall forthwith refund the said earnest money paid by the purchaser to the vendors with interest at 12% per annum as also the costs of and incidental to the perusal and investigation of the vendors' title assessed at Rs. 2500 only in the aggregate.
13. The plan of the proposed building at………..showing the flats to be allotted to the vendor in accordance with this agreement will be signed by both parties.
14. The purchaser shall have the right of demolition renovation of the existing building and construction of the proposed building at…….and to sell, resell, lease out, let out other flats and spaces in the proposed building on plan basis from the date of conveyance without any objection from the vendor in so far as the same does not affect the rights of or conflict with the interest of the vendor as regards two flats hereunder agreed to be allotted and conveyed to him.
15. Any dispute or difference between the parties arising out of the meaning construction or import of this agreement or their rights and liabilities hereunder shall be adjudicated by reference to the arbitration of two independent arbitrators one to be appointed by each party who shall appoint an Umpire at the commencement of the reference and the award of the arbitrators or umpire shall be final and conclusive on the subject as between the parties and this clause shall be deemed to be a submission within the meaning of Arbitration and Conciliation Act 1996 and its statutory modification or re-enactment thereof in force from time to time.
Schedule of property
In witness whereof the parties hereto have hereunto set and subscribed their respective hands and seals the day, month and year first above-written.

Signed, sealed and delivered 
by the above-named vendors
at Mumbai in the presence of:

Signed, sealed and delivered 
by the above-named purchaser 
at Mumbai in the presence of:

Received of and from the within-named purchaser the within-mentioned sum of Rs……….only being the earnest money payable under these presents as per memo below:

Witness:                                                                              Signed
Memo of Consideration
By A/c Payee Cheque No…………dated……….drawn on X Bank Ltd., Mumbai Branch in favour of the vendor. Rs………..
(Rs………)
Witness:                                                                                      Signed