venkat 23 August 2017

Sale agreement cancellation for residential plot

Sir , I am the buyer and had a agreement for sale of land between me and builder for 123,00,000 , initially i paid 25% amount as advance and remaining at the time of registration , due to some issues we decided to cancel the agreement and builder agreed for cancellation and refund money back and builder gave me post dated check for refund(25%). date of agreement was july 29 2017 , cancellation date was 8/22/2017 (not legally). post dated check has a date of sep 22 2017. we had a agreement for 45 days from july 29 2017 =sep 15 2017 , but post dated check have a date sep 22 2017 , the agreement is valid for only 45 days ? and i have to collect money back before 45 days ? check will be valid after agreement(sep 15 2017) expiration period ? this is the point had in agreement "That the builder will refund the total advance paid by the vendee, in case the bank fails to sanction the loan or for any other reasons within 45 days without any deductions ,by the way of an account payee cheques only." please guide me to proceed further , i have to wait till sep 22 2017 to cache the chec k or i have to take any legal action ? Thanks

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G.L.N. Prasad (Retired employee.) 23 August 2017

Cause of action arises only after 22nd Sept,2017.

Once a cheque was given as refund, it is deemed that the amount was refunded and date on the cheque is not material and just an adjustment of availability of funds with builder.

To be on safe side, incorporate all facts chrolnologically as stated in above post to builder and issue a Registered notice to builder to keep sufficient funds available on date of the cheque, as you will be presenting the cheque on 22-9-2017. Invariably, write that you have made some arrangements expecting such encashment, and you will be subjected to irreparable financial loss in case of dishonour of the cheque. Contact an Advocate for issuing such deft notice. Once the notice is received, builder can not go back on obligation, as cheque bounce may be causing him loss of reputation and such criminal action.