• Can a seller cancel a sale of his property

Hello Sir/ Maam,

I was willing to sell my property a couple of years back. I did get a seller. We entered into an agreement of sale on a Rs 100 Non judicial paper wherein it was mentioned he would give an advance payment in form of a DD (which he gave) and the remaining amount in a couple of days. 
However something came up and I decided not to sell the property, I did not even draw the DD that was given to me, so technically I have not taken any money from him.
He has now filed a case against me stating I should be selling the property to him only. Unfortunately my property is located in a different city altogether and it is very difficult for me to attend the dates.
I do not know a way forward, please could someone assist over here. My lawyer too has been just getting me new dates in the court despite me asking him about the status.
Asked 6 years ago in Property Law
Religion: Hindu

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19 Answers

See you have to contest the case since there was agreement and DD of same amount made he can file case though after that he has to prove that he took further steps to pay remaining amount and you failed to register as per the agreement . You have to appoint a good advocate to defend and file written statement on your behalf saying buyer failed to pay the amount that's why it was not registered.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

  1. You didn't draw from the D.D., but did you return it to him? 
  2. Litigation is indeed a tedious and time consuming process. However, you advocate is supposed to brief you about the status at each date, not just give you the date of hearing. He is also supposed to brief you about his plan of action. Has your lawyer given you your 'client copy' of the brief? If not, it's lack of professional ethics on his part. 
  3. If para 2 is correct, you must take back your brief from your lawyer and appoint an expierenced and deligent counsel. Such assistance doesn't come cheap, however it's best to prefer deligent counsels with professional integrity. 
  4. I'm prepared to handle your case and defend it and get the other party's suit filed against you dismissed with costs. I'm based in Mumbai/ navi Mumbai but have been appearing in courts and tribunals beyond my district and state and also appear before various high courts and supreme Court 
  5. To be of any assistance to you, I require an exhaustive consultation session with you first. You must avail of phone consultation service here at kaanoon to speak with me to seek appointment with me at my office for exhaustive consultation

Netra Mohanchandra Pant
Advocate, Navi Mumbai
1590 Answers
5 Consultations

1. since you entered into the agreement, therefore, the other party must institute the case of specific performance,

2. it's a civil suit and will take a long time reaching the conclusion,

3. I advise you to settle the matter with the opposite party if you find any hopes

 

 

Suneel Moudgil
Advocate, Panipat
2386 Answers
6 Consultations

1. It is a civil case, hence you do not have to appear personally in the court. The appearance of your lawyer shall suffice except at the evidence stage.

2. The court will decree the suit for specific performance in his favour if he is able to prove that he was ready and willing to perform his contractual obligations but you failed to perform yours.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

You have to file detailed reply denying allegations made in suit filed by plaintiff 

 

2) take the plea that you are not bound to sell property to buyer as no DD was encashed by you 

 

3) suit for specific performance has to be filed within period of 3 years 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

1. A Agreement to Sale, must be COMPULSORILY be property Stamp Duty paid (not 100/-, which is legally not enforceable) and duly Registered before the Registrar of Sub-Assurances. In your case the Agreement to Sale is legally null & void and the court cannot legal cognizance of it and ultimately the matter has to go in your favor, BUT you will have to face the court proceedings to prove all this which takes considerable years & legal fees.

2. IF you are not able to attend court proceedings, you can appoint some confederate friend /relative via a registered "Power of Attorney" to be present during court proceedings etc...., who will have all the powers which includes giving instructions to lawyer or to change him.

3. You can also view the case status online via the court's website.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

In your case the Agreement to Sale is legally null & void and has no legally enforceable value in Court litigation's.

 

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

Agreement executed on stamp paper is binding upon parties 

 

if he had handed over DD to you and you have not returned DD buyer can sue you to execute registered sale deed in his favour 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

  1. If you are still holding the D.D., it's a clinching evidence that you have not drawn any money from it. 
  2. Hence, you must produce the D.D. in court as evidence. 
  3. Kindly take appointment for further consultation as it's too tedious to reply to follow up questions over here and serves neither your purpose nor the purpose of counsels who answered your original question. We counsels expect fee for our consultation which is not possible by answering follow up questions. So chose the counsel whose initial reply satisfied you the most. As already stated, avail of phone consultation service here at kaanoon to speak to me on phone and seek appointment with me at my office

Netra Mohanchandra Pant
Advocate, Navi Mumbai
1590 Answers
5 Consultations

If the property is not registered or it's registered still you can obtain cancellation of sale deed.

Do you have possession  on the property.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

Specific performance of unregistered agreement is permitted. Don`t mention, that you received DD and on his failure to provide you DD and payment in couple of days as decided, plaintiff failed to perform his part, hence not entitle to ant relief.

Hope no receipt given for DD.

Agreed in agreement that DD received than only defense is default on him of not paid further amount in giving time. And due to his failure, agreement expired. 

2009 ? suit is barred by limitation. Tell your lawyer to file application n court for dismissal of case due to barred by limitation.

Civil suit takes times but if your advocate not informing the progress of case , change him.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

See agreement unregistered 100 Rs. Stamp paper is valid and can be taken as proof of transaction though he has to establish that he completed his part of agreement and you failed to deliver and register the property.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

You need to contest the case and show to the Court that why you refused to sell him the said property. If Court feels your reason appropriate and no loss suffered by that buyer then you can win the said case

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

You should call the buyer and express your idea and convenience him about your breach of promise. Offer him the interest for the amount and cancel the same. Please don't take these issues lightly. Mutually agreed cancellation is advisable.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

If it is an agreement of sale on a 100 Rupees stamp paper, then it is valid.. better settle dispute amicably.

 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

1. Agreement to sell is a contract, hence the mutual contractual obligations have to be discharged unless the agreement is cancelled mutually .

2. That you did not present DD to the bank and it became stale due to lapse of time is not a fault on his part.

3. The court can pass a decree of specific performance against you.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

Since he's filed a case against you it becomes your duty to challenge his case on the basis of merits and documentary evidences in your side.

The unregistered sale agreement is not valid and cannot be enforceable in court.

You may offer to return the amount received from him since the unregistered sale agreement is considered as a receipt for the amount received from him.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

You have not initiated any legal action to cancel the sale agreement.

You have not returned the DD.

You have not taken steps to revalidate the invalid DD.

You have not mentioned that when did he file the suit and what is the current status of the case.

Since the matter is pending before court, any more opinion other than what was rendered in the previous post would be a misguidance.

You may follow the case properly through your advocate.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

1. Agreement on Rs 100 stamp paper is legally admissible in court as evidence.

2. You should have send him a legal notice for cancellation of sale by returning the DD.

3. Now you have to defend your stand that dd was taken but not withdrawn and buyer doesn't initiate remaining payment due to which you sale agreement validity was expired and you have decided that you don't want to sell the property.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

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