• Can vendor cancel a sale agreement unilaterally by a notice

I purchased 6 bigha 6 biswa land in Khasra No. 941,942  vill. Nindar, teh. Amer, Dist. Jaipur, through a Sale Agreement from vendor, Pratap Singh Rajawat, on 7.2.2006. 

The total deal was for Rs. 85,05,000/-, and I paid Rs. 55,50,000/- vide cheques & Rs. 13,00,000/- vide cash, i.e. paid the vendor a total of Rs. 66,50,000/- 

The salient terms of the Agreement were:

1. The vendor shall register land in my favour in proportion to the payment made by me, and will handover possession of free from encumbrance land to me in proportion with the payment.

2. The vendor handed over possession to me as per the above condition on site and on revenue trace map with color coding and signature.

3. The vendor could not carry out the registry as his sister had a court stay on the property, and other dispute on the property, but he promised to clear the disputes at the earliest, and register the total land in our favour, and receive balance payment of Rs. 16,55,000/-

4. On 1.12.2006 he claims to send a legal notice to me, which I did not receive, in which he accepts receipt of Rs. 54,50,000/- only as on date, and proposes to return the full amount, or if he can't arrange the funds, then he proposes to register a part of the said land in my favour of equivalent value.

5. Meanwhile I sent several notices to him to take the balance payment & register the land in my favour, but he did not give any direct reply to me, and neither did I receive any notice from the vendor.

6. In 2014, the Stay was lifted, and disputes were resolved, but he did not inform me about it in written till today. I contacted him several times for registration, but he refused.

7. Now the land rates have become very high, so he refuses to execute registry.

8. Now he has forcibly dispossessed me and stolen our material on the said land, and sold the same land to a third Party, with Agreement to Sale.

8. I lodged an FIR No. 461/15, P.S. Shyam Nagar, Jaipur, against him u/s 420, 406, 467, 468, 471, 379, 380 IPC in October 2015

I want advice on the following points:

1. Will the vendor's notice be considered as 'served' even though I have not received them? Nor have I signed any receipt.

2. Can the vendor cancel the Agreement one-sidedly without refunding the advance money?

3. Can the vendor cancel the Agreement one-sidedly, even when the Agreement clearly states that the registry will be done in proportion to the payment received?

4. The reason for delay in registry was due to the vendor's fault (Stay & dispute on land), Can he still make it the ground for cancellation of Agreement after 10 years?

5. Is there a time period limit for filing a criminal case against this vendor?

Thanking you for your advice. 

I would appreciate it if your advice has reference to Acts & Sections.

Regards,

Kamlendra Singh Kurki
Asked 10 months ago in Property Law from Jaipur, Rajasthan
Religion: Hindu
1) vendor notice cannot be deemed to have been served if you have not received the notice

2) vendor cannot unilaterally cancel the agreement . If he cancels agreement advance has to be refunded to buyer as per clauses in agreement 

3) it is necessary to peruse agreement signed by you with builder to advice 

4) the vendor has to register property in proportion to payment received as per the clauses in agreement 
Ajay Sethi
Advocate, Mumbai
23339 Answers
1220 Consultations
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1. The sale deed was not yet registered in your favour. So in what capacity did you possess the land?

2. What are the grounds on which the seller issued the notice for cancellation? The notice is required to be read threadbare before an opinion can be formed. Be that as it may, the agreement can be cancelled by the vendor only within the four walls of the agreement itself or if the vendee has violated any of the essential conditions of the agreement. If there is no fault on your side then you are free to file a lawsuit against the vendor to seek court's directions to him to register the sale deed in your favour with compensation or claim recovery of the amount paid to him.

3. You have filed the criminal case already for which there is no time limit but the time limit is 3 years for the lawsuit against him.
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0
Hi,
Please find my answers
1) Vendor's notice- No notice is served unless it is received by the person to whom it is to be received. Ask him for proof of dispatch of Legal Notice. 

2. vendor canceling  the Agreement - If it is an unregistered agreement, the vendor can claim to cancel the agreement, but not valid in eyes of law, till such time the money is returned. If it is a registered agreement, cancellation needs to be signed by both the parties. unilateral cancellation not possible. 

3. Can the vendor cancel the Agreement one-sidedly, even when the Agreement clearly states that the registry will be done in proportion to the payment received?

4. The fact that the vendor took money from you inspite of pending court case by itself is a fraudulent transaction. You only have the right to either cancel the deal or wait for the outcome of the suit. The vendor has the right to refund the money with interest or register the property provided the outcome of the suit is in his favour. No chance of refusal of registration by vendor now that he has been having your money for 10 years. 


5. Is there a time period limit for filing a criminal case against this vendor- Actually the time is barred . However you can state that the vendor had a pending suit which you came  to know about it now and hence not time barred. So you can file a civil suit seeking injunction against the vendor from selling his property to any outsider and also request the court to direct the vendor to register the property in your favour and pay mesne profits.
Rajgopalan Sripathi
Advocate, Hyderabad
873 Answers
43 Consultations
5.0 on 5.0
1. Will the vendor's notice be considered as 'served' even though I have not received them? Nor have I signed any receipt.

No, until he proves that he had sent it by registered post and the same has been returned for want of certain reasons, that too as a proof of having sent the notice. 


2. Can the vendor cancel the Agreement one-sidedly without refunding the advance money?
No, it is illegal and invalid.



3. Can the vendor cancel the Agreement one-sidedly, even when the Agreement clearly states that the registry will be done in proportion to the payment received?
He cannot do so, it is illegal and invalid in law. 



4. The reason for delay in registry was due to the vendor's fault (Stay & dispute on land), Can he still make it the ground for cancellation of Agreement after 10 years?
Actually you should have expressed your willingness and readiness within three years from the date of agreement and if the vendor was not willing nor he had responded, you could filed a suit for specific performance of contract.  In my opinion your case may appear time barred, however since you have told that you have lodged a criminal complaint in the yer 2015, you can harp upon the limitation aspect from that date onward. 





5. Is there a time period limit for filing a criminal case against this vendor?
Since you have already filed one, why dont you follow it scrupulously. 
T Kalaiselvan
Advocate, Vellore
14138 Answers
127 Consultations
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