Sale Agreement - Cheque Dishonored

Im the buyer, as loan is not possible on property.I Stopped Cheque Payment within 2 days of sale agreement.Now Seller is threating to file case.Terms & Conditions of Agreement are as follows. WHEREAS the property more fully described in the schedule hereunder is the self acquired property of the VENDOR who having acquired the property as mentioned above . WHEREAS the VENDOR is the absolute owner of the property and she has been enjoying the same with absolute right and she has clear and marketable title to the Schedule Property and free from Encumbrances . WHEREAS the VENDOR being in need of funds for purpose of meeting her domestic, legal necessities, Better investments has offered and agreed to sell the schedule property and more fully described in the Schedule property . WHEREAS the VENDOR offered to sell and transfer the schedule property to the PURCHASER for a sale consideration of Rs.XXXX and the PURCHASER herein has agreed to purchase the same for the aforesaid consideration subject to physical measurement on the following terms and conditions: WHEREAS the PURCHASER herein intends to avail loan against the scheduled property from any Nationalized/Private/PSU Banks due to any reason if the said Banks/Financial Institutions fails to disperse the loan, the advance paid by purchaser has to be entirely refunded by the vendor to the purchaser soon after such intimation from the bank rejecting the loan application.