Agreement to Sell executed between owner seller and buyer under which cheques were given is required to be examined in order to suggest remedies. However, in the light of dishonouring of cheque you get issued legal notice and cancel the agreement to sell.
Two SBI bad checks bounced - knowingly issued paid for home sale
After my several ADS in news paper, FB, Google, Handouts, etc... This Buyer (a practicing senior High Court Advocate in Kolkata) responded showing a very high level of his interest… My home being a high priced item for sale, buyer agreed (attaching copies of his PAN-Aadhaar-Passport photos, plus signatures on all pages) a non-revocable contract in writings on non-judicial stamp papers, also issuing signed 2 post dated checks as... 1% (of total property price) payable now, 50% payable after 10 days, 3rd-4th checks (not issued yet)…40% payable after 60 days, balance 9% payable after 90 days, when the actual title of the property to be transferred by seller (me) to buyer’s name… Based on the above he was given copies of property deeds, approved plans, NOC, tax clearances, etc which were all proved genuine without any pending disputes, showing me as only first owner. PROBLEMS: upon deposit of the first 2 checks (SBI), both bounced as INSUFFICIENT FUNDS, all returned back to seller (bounced cheques in my possession)…on questioning the buyer and of reporting this purposeful wrongful acts of his as violation of sect. 138 and reminding buyer of…"Supreme Court Latest Judgement on Cheque Bounce: Section 138 makes it a crime to bounce or dishonour of cheque, punishable by up to two years in prison or a fine equal to twice the amount of the cheque”…. The buyer gave an excuse of a delayed transfer of a large fund soon to happen by June 7th-2023…he was now challenged by my (seller) to show any supporting documents proving his claimed approval of large funds to come…but he failed to show any, raising many more questions of his truthfulness… l Lately noted, he stopped any replies to me... I like to ask KANOON what should be my next step… Owner of property
Asked 2 years ago in Property Law
Religion: Hindu
6 Answers
Terminate the agreement for sale on failure on part of buyer to make payment as agreed
2) I presume there is clause in agreement for termination of agreement on account of failure to make payment as agreed upon
3) contact a local lawyer
- Since, you both have entered into an agreement to sale , and hence both are under obligation to comply the terms of the said agreement.
- Further, as the advance given cheques are bounced by the bank on presentation , then you can cancel /terminate the agreement with him , after sending a legal notice for the same.
Without passing of any consideration, the agreement stands repudiated by the buyer. Issue him a lawyer's notice stating that the agreement stands cancelled due failure to payment of agreed advance.
Yea section 138 of NI act is.applicable to you. You can send the notice and file complaint after cheque bouncing
The sale of property shall be for a sale consideration amount.
The cheque of buyer is bounced then he is not entitled to get the property transferred to him by a sale deed. In that case, you issue him a legal notice that owing to non payment of sale consideration advance amount, he has committed breach of contract hence the sale agreement stands cancelled automatically.
You can communicate this to the buyer and don't entertain him anymore.
Please be aware that you cannot take cheque bounce case under section 138NI act against the buyer in this case because it is not a legally liable debt.
