Suit by unpaid seller

Querist : Anonymous (Querist) 24 September 2010 This query is : Resolved
Sir,
If a sale deed has been entered saying that the consideration has been paid via a Demand Draft (i.e. issued by the Bank on account of loan). However the demand draft has not actually been encashed,as the loan was subsequently cancelled. However believing on the fact the DD will be encashed the seller signed the Sale Deed. Now as the amount is not actually paid, what can be the means to get the unpaid money?

If in the suit for recovery of balance amount the buyer is unable to pay the remaining consideration, then what other relief can be provided by the court of law?

The buyer got the loan sanctioned by concealing certain facts, so the DD was issued. However before the disbursement the Bank came to know of the facts and the loan got cancelled. That is how the DD could not be encashed.

The Bank had issued the DD on the basis of certain facts. However certain important facts were concealed by the buyer from the Bank. Just before the DD could be encashed the Bank came to know the facts and they cancelled the DD. As a result the seller could not get the consideration.

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Devajyoti Barman (Expert) 24 September 2010
Without consideration there is no transfer of property. As the DD , the consideration amount itself could not be received then filing a suit to declare the deed of conveyance as null and void will suffice.
In alternative one can alsp file a suit for recovery of consideration amount.

Adv ramesh chheda (Expert) 24 September 2010
for sale of immovable property there should have been some consideration exchanged before execution of agreement. since the consideration is not exchanged it is not valid sale agreement and therefore can go for the suit of specific performance . Adv ramesh chheda - Mumbai 9870112826

s.subramanian (Expert) 25 September 2010
I disagree with the above views. For non payment of the sale consideration does not invalidate the sale deed under the Transfer of Property Act. The vendor cannot cancel or invalidate the sale deed on this ground by any legal proceeding before any court. But the law vests him with the right to file a suit for the recovery of the unpaid purchase money only.

Chanchal Nag Chowdhury (Expert) 28 September 2010
How could DD be issued & not encashed? what happened to it? U seem to have posed a utopian problem.

Khaleel Ahmed (Expert) 30 September 2010
How could the Demand Draft not encashed?Whether it is fake or out dated?
If the seller not received the sale consideration from the purchaser, or purchaser deceived the seller there are so many remedies available to take action against the purchaser in civil and criminal law.

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