Sale deed in case of checque dishounered
Querist :
Anonymous
(Querist) 13 August 2011
This query is : Resolved
Hi,
I have purchased a shop for 12 lakhs and issued a cheque for 11 lakhs during sale deed registration. I have suffecient funds to clear the cheque given to seller.
After registration seller told me that the sale deed gets cancelled in case cheque is dishounered due to any reason. my only worry is, what if the cheque is dishounered due to any mistake on the content (signature mismatch or any corrections, not sure at this point). The cheque details are mentioned in the sale deed.
In case of any issue with the cheque I am ready to issue a new cheque or can pay by cash.
In this case, will the sale deed gets cancelled / become invalid as we have mentioned the cheque details in the sale deed?
Thanks
Kiran
R.Ramachandran
(Expert) 13 August 2011
I do not know why have this sort of strange doubt about the cheque that issued (unless you are conscious of some mistake). In any case, you can approach your bank and keep them informed. In case the cheque comes, you can instruct them to clear the same. You can give written instructions to the bank specifying the cheque, the amount for which you issued and the name in whose favour you issued. You can also tell them that in case of any deficiency you are ready to rectify the same.
In any case, the Sale Deed cannot become invalid automatically unless there is any specific condition incorporated in the Sale Deed. In any case, the seller would give you a notice u/s. 138 N.I. Act. The moment the cheque dishonour intimation comes to you, then immediately get a DD taken out in favour of the seller and send it by Registered post to them. That will show your bona fide.
adv. rajeev ( rajoo )
(Expert) 13 August 2011
No. Sale deed wont be invalid because of cheque bounce. Seller has to approach the civil court to set aside the sale deed.
adv. rajeev ( rajoo )
(Expert) 13 August 2011
No. Sale deed wont be invalid because of cheque bounce. Seller has to approach the civil court to set aside the sale deed.
Advocate. Arunagiri
(Expert) 13 August 2011
The sale will become invalid if the cheque bounces. Because the consideration as per the sale deed was not paid.
In that situation ask the seller to represent the cheque and clear the problems.
M/s. Y-not legal services
(Expert) 14 August 2011
No.. Unless there is if any specific mention about this issue on the sale deed its will not make problem. Because dishonour of cheque only not an offence. If you failed to repay the amount with in time after recieved notice mean there only you committed an offence. So just think about it.
prabhakar singh
(Expert) 14 August 2011
i subscribe to M/S.R.Ramachandran &Toms view,for it is absence of element of consideration in an agreement that makes it void and not the mode of payment thereof.e,g.,A sale is made between X and Y,where x being vendor agrees to promise of y that y shall pay and x shall accept the consideration of Rs.1lakh a year after the sale.y defaults in paying on due date,but sale will not fall through invalid.It shall only confer a cause of action of realization of consideration in x favor.
Therefore TERMS WILL GOVERN INDIVIDUAL CASES.
Querist :
Anonymous
(Querist) 15 August 2011
Thanks a lot to all who have responded to this question. I have already informed the bank to clear the cheque and asked them to contact me incase of any issues with the cheque.
Thanks
Kiran
girish shringi
(Expert) 15 August 2011
Why didn't you thought the same before putting your query,being a smart person you wanted to know the expert opinion,in case you failed to fulfill the terms and conditions of your sale deed.
