Bayana is going to expire.

anonymous (Querist) 23 January 2024 This query is : Resolved
Posting on behalf.

Bayana was written on stamp paper of Rs. 500.00 in Punjabi language for a piece of land worth 1 CR, for example. At the time of Bayana, seller has received earnest money of Rs. 15 lacs only and second party took the possession of the land as seller was not good in Punjabi language. The validity of Bayana was set for 12 months.

2 days before expiry date, purchaser requested to extend this Bayana for additional 6 months which was agreed on the same stamp duty paper by just hand written with pen a line that this Bayana would be extended to another 6 months.

But now only 28 days left with validity of this Bayana, seller has not received any more payment nor have any clue if second party is interested to make balance payment as they are saying that by default any Bayana is always valid for 3 years by law.

Question: What is legal rights of seller in this case? Can he file a court case for cancelation of Bayana by forfeiting his earnest money on the ground of not able to make 100% balance payment on or expiry of Bayana? How possession can be taken back as property is locked by second party in the means of possession.

Thanks in advance.

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Quick Summary

This discussion concerns a 'Bayana' agreement for land that is nearing its expiry date. The seller is concerned about the buyer's delay in making the balance payment and their claim that the agreement is valid for three years. The seller wants to know their legal rights, including whether they can forfeit the earnest money and reclaim possession. Advice suggests issuing a notice to the buyer, potentially cancelling the agreement if payment isn't made within the remaining period, and seeking legal recourse for possession.

T. Kalaiselvan, Advocate (Expert) 23 January 2024
The limit for sale agreement is three years.
However on the basis of the sale agreement, since it was executed on an unregistered deed, the seller can issue a notice to the buyer stating that since he failed to perform his part of contract by paying balance of sale consideration amount to get the sale deed registered, the sale agreement is cancelled.
After that the legal issues can be challenged.

Advocate Bhartesh goyal (Expert) 24 January 2024
Since on request of purchaser you extended time limit to perform contract to purchaser after that " Time Is Not Essence Of Contract " so now suit for specific performance can be filed within three years of date of agreement. Issue notice immediately to purchaser and ask him to make balance payment within 28 days ( remaining period ) and after that agreement will be deemed cancelled and legal action to get possession back will be initiated.

Sudhir Kumar, Advocate (Expert) 24 January 2024
given facts indicate that (correct me if I am wrong):-

1. buyer is not able to meet the deadline.
2. agree / extended bayana period is expiring.

if there is a forfeiture clause the banana can be forfeited and property can be restored.

kavksatyanarayana (Expert) 24 January 2024
Is there any clause whether the buyer is unable to pay the remaining consideration within the period, the buyer shall forego the amount paid in the agreement? For extended period of 6 months shall be on a separate stamp paper but not adding a line with pen in the already executed document is not valid.

anonymous (Querist) 24 January 2024
Reply to previous comments.

In banana or agreement we had clause if buyer is not able to make the payment or registry then earnest money received will be forfeit.

kavksatyanarayana (Expert) 25 January 2024
Final notice may be given; if the buyer does not respond, he will lose the bayana.

T. Kalaiselvan, Advocate (Expert) 29 January 2024
The sale agreement having the conditions to forfeit the advance amount is the buyer is not complying the contract conditions is contrary to law, the seller cannot retain the entire advance amount, the buyer can appraoch and get back his advance amount along with interest.
The agreement cannot be enforced by law if it is not done by a registered deed.

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