Cheating by executor(Vendor) of Sale Agreement

vinod bansal (Querist) 14 September 2010 This query is : Resolved
R/Experts
A sale agreement was executed in between my client and a person namely Ramlal for a sale consideration of Rs. 10 lac and an amount of Rs. 5 lac was paid at the time of agreement as earnest money.Possession was not delievered to my client(Vendee)It was settled in between the parties that sale deed will be executed on 01/07/2011.Usual terms were also mentioned in agreement and it was witnessed by two witnesses and it was attested and registerd by Notary public.Now it has confirmed to me that Vendor Ramlal has again executed a sale agreement of same property with someone,thus he has cheated my client,beside this it was mentioned in our sale agreement that property in question is free from all debts/loan/surcharges but now my client have come to know that a loan of bank amounting Rs. 4 lac is outstanding against vendor Ramlal against this property,It is also misrepresentation by vendor,Now what is remady available to my client civil as well as criminal.Can i file a suit for specific preformance at this stage or it is pre mature bcoz date for sale deed is far away as that is fixed for 01/07/2011.Can i also file a complaint us 420 IPC.What step/legal action i have to initiate for my client.Can i file any suit for seeking injunction and for direction to Registerar and vendor not to registered any sale deed in favour of anybody except my client. Kindly advice. Thanx

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R.R. KRISHNAA (Expert) 14 September 2010
Dear Vinod

Your client has remedies open both under civil and criminal laws. But legal remedies if pursued would consumer lot of time which will be loss for both the parties. It is best to inform the vendor about his act, may lead to civil / criminal prosecution and advice him to settle the loan amount and also execute the sale deed in your client’s favour. This would save the costs of lodging the case and also save much time. If this corrective method of informing the vendor in person about the legal consequences in a friendly manner fails, then you may proceed according to law. In such case your idea of lodging case of cheating under criminal law and seeking injunction in civil law can be pursued simultaneously which is the right available remedy.

The vendor having executed another agreement over the same property, clearly gives your client the right to sue and you can file the case irrespective of the date of execution scheduled on 2011.

Best regards.