Sale agreement but project called off, money not returned
I bought a retail until in a proposed shopping mall in Bangalore which was going to be built as a joint venture between a builder and land owner. I paid 90% of the property price (24 lacs with cheque and 30 lacs in cash)and a sale agreement was signed the myself and the joint venture parties.
The project got called off because the builder decided not to go ahead with the mall project. Following this decision by the builder, the land owner has started building a residential project with another builder.
Despite numerous requests, I am struggling to get money back. What can I do legally to force the builder to repay my money back including the cash payment? The sale agreement is unregistered.
Asked 1 year ago in Property Law from United Kingdom
1) issue legal notice to joint venture parties to refund your 90%payment with interest at 18%pa within period of 15 days .
2) if they fail to refund you will have to move court to recover Rs 24 lakhs with interest .
3) if your agreement mentions cash component ie 30 lakhs then you can seek to recover said amount also .
4) also obtain stay for building of residential project on said land
5) also file criminal complaint of cheating , criminal breach of trust against the joint venture parties
6) you will have to come down to india to file criminal complaint .
7) for civil suit you can give POA to any relative to file suit in this regard
1. Why did the builder call off the project? After the JV agreement is entered into it cannot be cancelled at the pleasure of either party. The cancellation of the agreement, unless consensual, has to be within the four corners of the agreement itself. Cancellation made by departing from what has been stated in the agreement is illegal and thus legal redress can be sought before the court.
2. The legal recourse available to you is to challenge the cancellation of the agreement in the court and seek the mandate of the court to the builder to execute the JV.
3. Alternatively, you can file a case for recovery in the court to recover your money.
1. This is common phenomenon in India building projects.
2. However nothing to loose heart as your money would not be lost.
3. File a case in consumer forum wherein you can apart from return of your money can claim damages, interest and compensation.
1. File a consumer case against the builder before your local District Consumer Dispute Redressal Forum alleging deficiency in service and unfair business practice claiming refund of the money taken by him with interest, damage and cost,
2. You can also file a cheating case against you.
It is a breech of duty. Rule of promissory estoppel will apply in thus case. You shoukd give Notice for compliance of contract. Certainly he will refuse because he has made plan for other project. Then cause of action will arise. Then you should file civil suit for specific performance of contract.
It is not compulsory than every contact should be in writing. Oral agreement has same bonding force.
Younhave transferred sale amount, it is an evidence that money was given for specific pudrpose. In transaction of immovable property court gives order of specific performance of contact because compensation will be insufficient. Due to promissory estoppel he can not change his words/stand because 90 % money has paid. Sec 115 evidence act prohibits these acts.
Law requires that this type of contract should be registered but you can not lost your right merely on lack of registration.