• Token money refund

We have collected token money of 3 lacs from our buyer on account of sale without any document. For a sale of rs. 26 lacs. But due to de monetisation the Buyer backed out and he refused to purchase the flat. Then we started struggling to sell the flat. Then the buyer started asking for refund of token.money. now my husband told he won't refund the money since he nit able to sell the flat since je ignored other parties on trust that he would buy but now its difficult for me to sell the flat. The buyer came home n made lot of hunga na for money when he was not at home and asked me to sign the document acknowledging the receipt of money n return it back in six months. Now they are following up wid me badly since my husband is not ready to give they the money as he doesn't have. Due to crisis situation. We had to sell the flat at 24 lacs at a loss of 2 lacs. Can someone suggest what should I do now.
Asked 4 years ago in Civil Law

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16 Answers

You have to refund token money if you have in writing agreedvto do so

2) buyer would file summary suit to recover money with interest based on acknowledgment of liability by you

Ajay Sethi
Advocate, Mumbai
87894 Answers
6207 Consultations

5.0 on 5.0

This is my response to you:

1. If the token money was taken from you, then it is your wish to return or not return the money;

2. Since there was no document or MOU then you are not obligated by law to return the money;

3. But there are chances that the buyer may send legal notice etc.;

4. Therefore if you wish you can forfeit 2/3rd of the token amount and return the 1/3rd amount to him;

5. Nonetheless you are not obligated to refund in total and the final call remains yours.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

This is in further response to you:

1. If you have accepted the receipt of the token money and promised to repay the same, then you are legally bound to pay them;

2. If you only accepted the receipt of the token amount and NOT promised to repay the same then you are not legally bound by it;

3. If you feel that the opposite party is creating trouble, then file an FIR or NC against them in the nearest police station under section 500 and 504 of IPC: http://www.advocatekhoj.com/library/bareacts/indianpenalcode/index.php?Title=Indian%20Penal%20Code,%201860

4. You can also complain that your husband is not staying with you and you have not taken the token money;

5. Also, the seller has full liberty to forfeit full token money of he/she chooses to.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

1. generally when a deal is cancelled by buyer, either the seller forfeits the token money or refunds the same after deducting an agreed percentage from that amount. Generally it is 10% deduction

2. since there is no agreement between you and buyer, the intention of the parties needs to be gathered

3. however in doing so there is a likelihood of disputes between the parties

4. i suggest you deduct some percentage from the token money and refund the balance

5. this will be fair to both the parties

6. you have also sold the flat and realised the sale proceeds. So it would not be fair to withhold the buyer's money

7. since originally you intended to sell the flat for 26 lacs, but you sold for 24 lacs incurring a loss of 2 lacs, I suggest you deduct 1 lac from token and refund 2 lacs to the buyer

8. in this way your loss will be reduced to 1 lac and actual realisation will be 25 lacs

9. you need to work out some mid way out to buy peace of mind. Dont invite legal trouble for petty issues

Yusuf Rampurawala
Advocate, Mumbai
6876 Answers
79 Consultations

5.0 on 5.0

Install CCTV cameras in the house

2) if you are threatened file police complaint of criminal intimidation under section 506 of IPC

Ajay Sethi
Advocate, Mumbai
87894 Answers
6207 Consultations

5.0 on 5.0

1) They can't threat you like this for non payment of advance money which your husband has taken.

2) Try to talk with your husband regarding this and get the picture clear for refunding money back to other party.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

See since you have acknowledged the debt so the buyer can go against you but he has no document to show that amount was given to you. As the amount was given to your husband, So you register a police complaint that the person is harassing you forcefully took signature on the empty paper, and you are not aware of any transaction

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Mam you can always make a police complaint against the person even if based on your sign document he goes in court he has to establish he has given amount to you the transition has to be established.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

The liability to pay back the money is of your husband and in any view of the matter if he was not able to pay the entire money then he should remain liable for the same.

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

The police shall not interfere in this matter since the matter is of civil nature. If they harass you further then lodge a police complaint against them for criminal intimidation.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

*The buyer came home n made lot of hungama for money when he was not at home and asked me to sign the document acknowledging the receipt of money n return it back in six months.*

The fact mentioned between the above stars, attracts a criminal case and u can give complaint to police

Konda Srinivas
Advocate, Hyderabad
211 Answers
2 Consultations

Not rated

Hi, legally he is not entitled to get the money back , as he intentionally withdrew from the sale agreement .. If he trouble you again it is advisable to file a police complaint for the nuisance that he is creating

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

Legally the people who paid you the bayana amount(token money) Cannot recover the same from you or your husband legally. once a purchaser gives token for a purchase and cancels the same on his own then the money is forfeited by the seller. Coming onto signed document to return the money, You can easily say that it was taken through undue influence and pressure which is not valid in the eyes of law. You can file a complaint for harassment in the nearest police station by stating all the facts of the case.

Ruchit Dugar
Advocate, New Delhi
190 Answers

4.9 on 5.0

1. In your case the agreement to sell had not been executed, so your husband should have refunded the money to the buyer.

2. The document signed by you is not binding on your husband.

3. You can lodge a complaint under Section 506 IPC for criminal intimidation against the buyer and state that he got the document signed by you under duress.

Ashish Davessar
Advocate, Jaipur
30761 Answers
971 Consultations

5.0 on 5.0

The advance amount received has to be returned to the buyer who cancelled his proposal to buy the property

You cannot blame him for the activities of your husband by refusing to return the amount.

Let your husband become aware of the legal consequences for holding someone's money unnecessarily.

T Kalaiselvan
Advocate, Vellore
78048 Answers
1543 Consultations

5.0 on 5.0

You are not liable for your husband's debts therefore why did you sign the papers?

If they torture you further then you may lodge a criminal complaint against for their such illegal threats.

T Kalaiselvan
Advocate, Vellore
78048 Answers
1543 Consultations

5.0 on 5.0

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