1 yes it's a strong case.
2. It varies from jurisdiction to jurisdiction
3. It's personal thing
4. Yes
5. Yes almost but stamp duty and court fee depends on court order
6. No
Purchasing a plot, token given to seller, but seller changed mind
Buyer, Seller and immovable property location: Indore, Madhya Pradesh. Facts of case: 1. I am a plot buyer and my broker talked with seller regarding a plot which i am highly interested in buying. 2. On 15 Aug, 2019, the broker and seller signed deal on a notebook paper (my/buyer name is NOT mentioned on it, just seller and broker) along with Plot number, size, location, 2 months time to complete payment, price of Rs 1.5 Crore for the plot. Broker gave a cash token of Rs 1 lac to the seller and that is also mentioned on it. Seller signed that notebook paper deal. There is NO registered document as such for the deal. 3. On 19 Aug, 2019, seller told broker (in writing on whats app), that he is canceling the deal and asked to collect Rs 1 lac. Broker had offered Rs 90 lac in cash and rest of the payment in cheque in a whats app message to seller. Seller insisted on depositing cash directly in his bank account. My broker did not respond to that. 4. I hired a lawyer and sent a legal notice to seller for dishonoring a signed agreement by him. The seller hired a lawyer and sent a letter that he never signed any deal with me, but knows broker since last 20 years as he has been selling/purchasing plots to his cousins and known to him. All the communication is on whats app of seller and broker. I have never met the seller or communicated by phone/whats app. Questions: a) if i file a court case against the seller for cancelling the deal, is it a strong case even though i do NOT have registered agreement of sale? b) How much Total court fee and stamp duty and other charges do i have to pay, since the plot deal was for Rs 1.5 crore and none of the documents are registered? Is there any penalty which i have to pay since the original deal was done on Aug 15, 2019 and I am filing case now? c) Can the brokers whatsapp messages to seller offering cash payment of Rs 90 lac go against me or can i put that on broker that he made on his own? i never offered d) Is it suggested to file a case? e) If i win the case, whatever expenses i incurred in filing case including stamp duty, lawyer and court fee, can that be recovered from seller? or do i just win and seller has to sell that plot at the same price as made in original deal? f) if i lose the case, can that backfire at me and seller cause any financial or other damage to me ? Kindly answer each question point wise as above (total of 6 six questions), hoping to get 6 answers point wise. Thank you Regards
Asked 4 years ago in Property Law
Religion: Hindu
18 Answers
1) There is no privity of contract with seller
2) you don’t have case against seller
3) court fees is state subject and varies from state to state
4) in Maharashtra court fees would be around Rs 3 lakhs
5) what’s app message would go against the broker
6) don’t file case . It is waste of time and money
A). U can file case for specific performance even on oral agreement and can enter into transaction on agreement with second party (here your broker) but u have to make both of them party in suit.
B). Only Court fee is necessary to be paid Rs. 300000/-(Three Lack) no any other stamp5duty or penalty is to be paid as you have 3 years limitation for filing suit from last refusal....
C). It's not mandatory for u.
D). In case broker returning your token amount then I'll suggest don't think about the case. As I can see broker cheated you intentionally.
E). Same answer as Q. B.
F). IF YOU WILL NOT DEFAME SELLER PERSONALLY THEN NO ANY BACKFIRE SHOULD BE THERE.
If you want to take a litmus paper test, or simple way then just file police complaint against broker and seller for fraud and get token amount, it'll pay by any one amongst both.
Sure ,you are entitled to get answer of your all questions lawfully on this post.
I am answering all questions chronologically as under:-
a- Answer is No.You can't cancel the deal even if you have no registered documents with seller.
b- Court fees yes, stamp duty No.
c- Yes, WhatsApp message would go against you on your refusal of deal. WhatsApp message is admissible in law.
d- Yes , a Suit for declaration and injunction under section 34 and 36 of Specific Relief Act.
e- Yes, all cost may br recovered from seller as per evidence.
f- Yes, possible if he proves against you.
1. Since there's no agreement between you both, no case will be maintainable.
2. The deal between the broker and the seller is reported to have been recorded in a notebook, in which even your name is not there, hence you cannot file any case against the seller for enforcing the sale.
The broker's assurance to you cannot be construed as sale agreement between you and the seller.
Therefore you may either directly contact the seller to buy the property following necessary paperwork or demand from the broker the return of your money given to him in this regard.
3. WhatsApp messages are not admissible as primary evidence in court of law.
4. No case is maintainable.
5. No.
When the court will not entertain your case, there's no question of winning the case.
6. See the above answer.
1. Since there is no privity of contract with the seller, you have a no case against him
2. Since the case filed by you would be non maintainable discussion court fees us meaningless.
3 yes absolutely.
4. Not ar all.
5. Doesn't arise.
6. Doesn't arise.
Forget this case and look for another plot.
There has been no deal on paper and hence you do not have a strong case.
You may file a case stamp duty etc. Varies feom state to state and can be confirmed from your lawyer.
There has been no agreement to sell. Not even talks have happened between you two.
It is not advisable to go ahead.
He may not harm you but you have no reason to file a case.
1. According to transfer of immovable property act, Cash over Rs 20,000 cannot be given. Here 1 lac CASH was given to seller through broker, if this is illegal, can it still be considered part performance or partial payment, seller can always say, that since 1 lac cash is illegal, it cannot be considered part payment as was ready to return it. 2. Also, since seller has proof of cash offer of 90 lacs, in court, if he simply says that he cancelled and returned to offer 1 lac because he does not want to break law by accepting 90 lacs in cash, as its illegal to exchange so much cash by anyway, me as buyer and offer through broker can go against me, right? and seller will be acquitted of this case easily? 3. What about following sections of the act? If sale deed not registered, how do i file a case, as basic element of sale of property is missing. 10x penalty is also applicable? The sale deed is chargeable with stamp duty under Article 23 of Schedule 1 to the Indian Stamp Act and it has to be executed on stamp paper equal to that of conveyance or else attracts duty penalty of 10 times that of actual stamp duty. The sale deed transferring immovable property of the value of 100 or more requires registration under Indian Registration Act 1908. 4. Part performance of Rs 1 lac by my broker, is applicable only if i am in possession of the property (section 54/54A), which is NOT the case, so can I even use part performance element here? its an empty plot and i cannot take possession of it, as its leased through IDA for 30 years to current seller. So, unless IDA transfers that plot in my name, i cannot take possession and without court order, it will not.
Asked 4 years ago
1) it would be considered as part payment
2) seller would win case as there is no contract between you and seller
3) agreement for sale even if not registered suit for specific performance is maintainable
All that has not been written down in an agreement that is the problem. Anyways there evidence that money was given and a deal was almost done. Here the seller didn't completely agree to what the broker was promising him. Therefore no contract. A contract agreement is necessary in order to prove that you had in fact reached an agreement. It was at best a half cooked deal.
Answer to question No 1 is cash transaction is in violation of Income Tax Act not T P Act. Broker is your agent and you as Principal ,in view of Indian Contract Act, is responsible for all the act of broker which has been carried out as per your instruction. Cash of INR 1 lakh payment attracts violation under Income Tax Act. Your payment of INR 1lakh towards property intended to be purchased is a part performance on your part through your broker and acceptance of INR 1 Lakh by seller for the property intended to be sold is an act of part performance for the property.
Hence you have right over the property to ensure and enforce the seller to sell and you have right to purchase it though agreement between you and seller is not executed.
If you have decided to purchase then appoint some good lawyer to move on your behalf suit for declaration of right,title and interest and injunction before Court of law under section 34 and 36 of Specific Relief Act.
You are ni where in the picture. You are unnecessarily wasting time in digging the same topic.
1. Yes it's against income tax Act to give more than 20000/- other than account payee cheque.
2. 90 lakhs cash will be a severe income tax issue
3. You need to file the case on aby document establishing sale.
4. Yes you cannot take possession without court order
Suit of specific performance of oral agreement against the seller is permitted.
Note book entry is valid evidence of agreement entered between the parties.
1. Seller do not have to tell all the technical reasons what you have discussed, he can straightaway deny the receipt of any mount toward the advance to purchase the property because you had never contacted nor given it to the seller personally.
2. If you cannot file a case agaisnt the seller, then where is the question of the seller defending himself.
You do not have any case against the seller.
With the proofs you can sue only the broker and cannot do anything to the seller.
3. You have mentioned the provisions of law which speaks about the procedure for making a sale agreement legally valid.
You have not at all entered into a sale agreement with the seller then where is the question of invoking any law to this situation?
4. Your imaginary and irrelevant concepts will not help you in any manner or may come to your rescue to the prevailing situation, hence to tide over the crisis you may better consult a local experienced lawyer to get a better idea on the practical situation.
your case is not maintainable.
court fees vary from state to state.
whatsApp chat messages are not admissible as primary evidence in court of law.
don't file
1. When you had not entered into an agreement to sell with the seller then on what basis did you contend in your legal notice that he has dishonoured an agreement. It is your case that you were not a signatory to what was written on a notebook paper.
2. Unless the agreement to sale has been entered into, no contractual obligations arise either for seller or buyer. Mere giving of token money does not result into an agreement. Before the execution of ATS either of them can back out.
3. You have no cause of action to file a suit for specific performance of agreement to sell against the seller, for there is no agreement in the first instance.
4. The question of part performance would arise only if the agreement was entered into. You have got it all wrong.
5. If the seller is returning the amount in entirety then take it. Many sellers don't.
1. The case is not in your favour as there is no registered agreement between seller and you.
2. Court fees will be according to court fees act of MP.
3. How will you prove that deal was finalized with you as buyer?
4. No i will not suggest you to file case.
5. If you win the case then court can order seller to pay the litigation charges.
a. Since you are not a party of the agreement , hence your case is not maintainable against the seller .
- However , you can file the case on behalf of the broker .
b. Not maintainable
c. There is no agreement and you are alien for him , then how you will prove your liability before the court.
d. No.
e. Yes
f.Yes can file a case against you
1. You can file a case against the broker for recover your amount
2. YES
3. If the said agreement to sale is not registered , then it will be impounded for paying cost and stamp duty
4. Yes.
