To recover money paid by making agri-land sale agreement
This is in Karnataka, Party-(A) is 80 Year Old and belongs to SC, Party-(B) is 55 Year old
(1) Land is conditional lease grant (5 years lease saguvali chit) to the party-(A) in 1960 for 5 years
(2) Party-(A) have not applied for permanent grant or for permanent "Saguvali Chit" till 2015
(3) It looks like as per the original "5-years Saguvali chit", the land would go back to the Govt but I the party(A) has made some settlement among the family and alienated to his elder son Party-(B) around 2000
(4) Party-(A) have three sons (B,C and D - all are married and have 18+ son/daughters)
(5) Party-(B) have Khatha in his name on the Land but No EC, No Sale Deed, No Regrant, No Permanent Saguvali Chit
(6) Party-(X) is a local bank granted a "Agre loan" of 25K to Party-(B) on the land
(7) Party-(Y) is a engineer by profession, also belongs to SC and have no agre land till now but born-and-brought up in Karnataka, and is eligible to purchase agre land
(8) Party-(Y) came to a conclusion that the "Land has clear title (my big mistake)"based on the "Bank Loan" granted by Party-(X)
(9) Party-(Y) paid 3Lakh (2 Lakh through NEFT to the Party-(B) account and 1Lakh as cash) as an advance amount to Party-(B) and performed a "Sale Agreement" and registered it with the sub-registrar by paying all the required fee.
(10) 14 major persons (All as per the "Vamsha Vriksha") have signed on the "Sale Agreement" before the "Sub-registrar" with the photo, ID-Proof and thumb impressions.
(11) Later Party-(Y) came to know that the land titles are not clear and cant be purchased as it might have gone back to the govt after the 5-years lease period from 1960-1965
(12) Party-(Y) asked the Party-(B) to return the advance paid amount but Party-(B) refuses to do so
(13) Party-(B) filed a recovery suit in the court under "7 Rule 1 and 2 of CPC" paying the fixed recovery fee, notice charges etc as applicable
(14) 10 People have taken the court notice but 4 people are not accepting for the third time.
(15) Party-(Y) is planning to go for news paper notice after the court approval
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Now,
(i) Will I be able to recover the amount?
(ii) Will I be able to recover with some legal interest on to the amount, what may be the interest rate?
(iii) Will I be able to recover the court-fee paid (almost 40K) to file recovery suit?
(iv) It is already 4th hearing and counting, how long it gonna take?
(v) Will I also be able to file a criminal suit against them? like cheating case as they have completely misguided me and not ready to give the money back.
Asked 8 years ago in Property Law
Religion: Hindu
Thank you Ajay Sethi for replying,
1) title of B is not clear and marketable. Lease was only of 5 years. On expiry of lease A had no rights on said land and could not have transferred land in favour of B
-- That is right, Party-(A) has no rights to transfer the land to anyone else but false documents have been created and "Khatha" has been put up to make settlement among the family members. Currently the "Khatha" is reflecting the Party-(B) name. Can this be an advantage for Party-(Y) to file the criminal suit saying that "Party-A/B haven't disclosed the truth?
2) there must be clause in agreement for sale that if title on investigation is found to be not clear and marketable buyer would be entitled to cancel agreement and seek refund of advance paid
-- My biggest mistake that I trusted them and didn't have such clause in the agreement as they said some time needed to produce all the documents.
3) you should get refund of money paid with interest, court fees paid
-- Will the interest be started/considered from the date of suite filed in the court?
4) suit would take years to be disposed of
-- Yes, this is India
5) file complaint of cheating criminal breach of trust against seller
-- I am taking this matter up with my lawyer
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T Kalaiselvan,
Thanks a lot for replying and clarifying my doubts,
i) Yes, since you have filed the recovery suit properly.
-- This gives me confidence
ii) Have you calculated the interest in the recovery suit and have made a prayer for the same in the plaint?
-- I have not yet, I will talk to my lawyer on this
iii) If you win the case, the court fee paid also shall be refunded to you by the court order
-- "If you win the case"!!!, It is clear that I have paid them money (NEFT-Cash), why is "If" here, is there any other chance that the case may go against me? by the way, they have accepted that the money has been transferred and they have also recorded their reply with the court.
iv) It may take at least another 5 years for disposal in the trial court.
-- This worries me
v) NO. criminal complaint is not maintainable
-- Why is it not possible, Mr.Ajay Sethi has mentioned that I could file a criminal case?
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Hi Ashish Davessar,
Thanks a lot for answering and clarifying my queries, below are my reply.
1. 'Will you be able to' is a hypothetical question in as much as it relates to what the judicial decree will, which is subject to factors like pleadings, evidence and how the case is actually conducted by you in the court.
-- I totally agree with you, I have "Sale agreement registered with sub-registrar signed by all the parties, NEFT proof showing the money has been transferred, the Party-(A/B/C/D) all accepted that the agreement has happened and the money transaction has taken place.
2. If you are held entitled to recover the principal amount then interest will also follow.
-- Thanks
3. On what basis party B filed the recovery suit is not clear.
-- Party-(B), i.e. myself, have waited for almost 8-months for the documents from them to execute/perform the sale but they failed and Party-(B) felt suspicious and enquired for the documents which finally proved false and shown that the land belongs to the govt. Note that the lease-grant (temporary Saguvali chit) of land to the Party-(A) was for 5-years and conditional. Party-(A) was supposed to apply for permanent grant (Permanent Saguvali chit) to get the land permanently into his name but the same is not done. Party-(B) (elder son of Party-(A)) has now applied for permanent saguvali-chit but which would not be granted as per the supreme court rule (I am not sure on the number but I have heard this)
4. The court will proceed ex parte against parties who have been evading the summons.
-- Thanks
5. A criminal prosecution for cheating may also be launched if there was suppression of the fact that the title
-- Thanks, I will talk to my Lawyer on this
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Asked 8 years ago