You hold the documentary proof for the dishonoured cheque and have returned the RTGS amount. As such, there will be no liability on your part if you cancel the earlier agreement to sell and proceed to sell your property to some other buyer.
Cheque Bounce for property sold
I agreed to sell a property and the other party gave me a token cheque for which, I issued receipt mentioning the cheque no., Bank, amt along with rate per sq yd, brief mention of property and approx area. Also mentioned that possession after complete payment within 1 yr. The said cheque for which receipt was provided with all details had bounced on presentation with reason 'insufficient funds'. We informed the other party and then they transferred the token amount thru rtgs. It has been 6 months since we signed the receipt but since then we have received very small amounts in part and till date only 1% property value is received thru cheque and cash. We have last week returned the total bank amt received by account transfer to the same bank account and have repeatedly asked them to come and collect their cash portion as we do not have any ATS signed mentioning any forfeiture etc. Now I have another party interested in my property but am unable to proceed as 1. I still have the cash amt with me for which a simple receipt of amount is issued without revenue stamp and 2. Initial receipt is with the other party although the cheque no. mentioned has bounced. So is there any liability on my part if I proceed with sale to another party as the initial cheque for which receipt was issued has bounced and all online funds received thru rtgs returned to same account thru rtgs only.
Asked 2 years ago in Property Law
Religion: Hindu
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9 Answers
- If there was an agreement for the payment of entire consideration amount and execution of sale deed , then the purchaser is bound to comply the terms of the agreement even oral .
- Further , if that party is not coming forward to comply the terms within the particular fixed period , then you can cancel the agreement after sending a legal notice.
- Further, if that party even not come forward to collect the amount as well, then also you can sell the said property to the intending purchaser.
1. Send a legal notice to the other party , stating that the contract between the other party and the seller has failed due to cheque bounce.
2. Ask the other party to collect within 15 days' the payment so far made to the seller.
3. Also, ask the other party to acknowledge the receipt of returned money to him, as also the cancellation of contract.
You don’t have any liability
you have to wait for one year as per terms of agreement
if buyer fails to make payment cancel the agreement
The amount reportedly paid towards advance for purchase of property has since been dishonored by bank for insufficient of funds, the said receipt for the cheque amount stands infructuous.
As the mentioned amount has actually not been transferred to the recipient, it cannot be considered as token for purchase of the property, therefore you may issue a legal notice to the party concerned about this mentioning that since the cheque given for the purpose has been dishonored by the bank there is no liability from your side on this hence the receipt given to the opposite party stand automatically cancelled.
You can keep the copy of this notice in a safe and secured place in order to produce it before court in case of any dispute that may be followed up by the opposite party in this regard in future.
In the absence of any valid agreement for sale, you can proceed with the execution of sale of property with the new prospective buyer on your terms.
Dear Client,
You can proceed with the sale to another party if there has been no agreement or any proceedings and if you have informed them about the cheque bounce.
Thank You
If you are a guarantor or have liability to cater. In this case if you issue check you will be liable otherwise not.
- You have merits and it seems you don’t have any liability
- you have to confirm terms of agreement
- You can issue notice to first buyer and if buyer fails to make payment then agreement is automatically cancelled.
the receipt issued by you containing the details as described in your question alongwith the subsequent transfers made by the purchaser to you, all constitute an agreement
as per this agreement the sale transaction was to be completed within 1 year
as per your own admission its only been 6 months
so if you proceed with another party there are high chances that the first buyer may sue you for specific performance of contract
even though the initial cheque may have bounced but the buyer transferred that amount to you by RTGS which is evidence enough that he complied with his part of the obligations
the fact that you unilaterally returned all the rtgs amounts to the buyer does not end the contract
the contract is still subsisting for the buyer and is thus binding on you
it does not even matter if there is no revenue or any other stamp affixed on the receipt issued by you
