Respected Madam/Sir, I have a purchaged a land of 8 decimal from a land owner in a price of 27 lakhs. That was under mudgade at a finace company. That person give us the mudgade statement of that land and assure me that after gettinfg the amount he is going to clear the mudgade amount. I have pay all the amount in NEFT except the advance of 3 lakhs.which was in cash mode with an agreemment in front of Noatary Officer. The owner also deposited the rest amount in his loan account and give us the xerox copy of the deposited cheque and the foreclouser payslip of the finance company. We have the registration deed with us. Now we come to know that the cheque which was placed to the finance comapany has been bounced. Now our advocate told us that we have nothing to do and the registration will be cancelled. So I become hopeless as the land owner doesnot talk with us. Please guide me or suggest me what will be the right for me.
1. If you want the land, you can file a suit for the specific performance against the seller to perform his part of the agreement,
2. If you want to cancel the agreement you can do so by sending a legal notice in this behalf,
You can contact me for further clarification
Finance company can file complaint against seller under section 138 NI on account of dishonour of cheque
2) sue the seller to recover its money with interest
3) in case your registration is cancelled sue the seller to recover your money with interest
No you cannot be helpless because of the cheque given to the finance company is bounced you have to file cheating case under section 420 and 406 against the person who has sold the property and finance company definitely file cheque bounce case under section 138 of negotiable instrument act similarly you have the right to file a case of compensation and refund of entire money paid in consumer forum for consumer commission as the case may be depending upon the value of the claim if it is more than 20 lacs you have to go to the state consumer commission and make the party the person who sold the property and claim interest and compensation including the legal charges from the respondent.
The cancellation of sale deed will only effective if the finance company claims its dues amount against the person and he is unable to pay that in that case also the matter will be contested in the court as the person who has taken the mortgage is liable to pay the entire amount as he has declared in the sale deed that the property is free from any encumbrance and he is in full possession of the property
But if you have given the cheque there can be cheque bouncing cases against you.
. You can file a Police FIR, requesting investigation and charge-sheet, for offences like Cheating, Intimidation, Fraud, Breach of Trust, Mischief etc.... against the land owner person, supported with all relevant supporting Documents, Evidences & Witnesses.
2. IF the Police does not take action, THEN you can file private criminal case u/s 156(3) Cr.P.C., in the local Magistrates court, seeking directions to the Police to investigate and file charge sheet. The said Person may come down for settlement.
You can issue notice demanding for completion of the contract which leads to filing suit for specific performance.
Notice for cheque bounce also has to be issued to seller for return of cheque.
In case, if your registration is cancelled you can sue the seller for recovery of money paid by you and also for damages and interest thereon.
You issue a legal notice to the seller intimating your intention to cancel the purchase owing to the prevailing facts and demand the money paid to him on various occasions in this regard.
After that you can file a money recovery suit based on the documentary evidences available with you.
1. You can lodge FIR against seller for fraud and criminal breach of trust.
2. You can also file civil suit for specific performance against seller for payment of dues of finance company because cheques were intentionaly bounced by seller.
3. Criminal case against seller will pressurize him to clear the dues of finance company.
File recovery of money suit along with interest.
You can also file criminal Complaint u/s 406 420 of IPC.
Advocate advise is not proper. Registered sale deed can cancel by order of court only. But financier has prior right on property to auction it to recover loan amount. Originals documents of property must be in custody of financier.
File FIR agasint seller.
