Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

How to recover the money at an earliest?

Querist : Anonymous (Querist) 21 December 2009 This query is : Resolved 
Respected experts,

A” is the land owner and “B”(purchaser) has entered into an Agreement of Sale(un-regd)and paid 1/4th of the sale consideration and “B” has failed to fulfill the terms and conditions, due to his personal problems. Now he wants to take back his advance paid amount from “A”. Accordingly “B” got issued a legal notice asking “A” to return back his paid amount with interest. While giving reply notice “A” informed that even till today he is ready to register the sale deed in favour of “B” after taking remaining sale consideration. In this “B” already expressed his inability in taking the lands and filed a suit for recovery of the advance paid amount with interest. Before issuing reply notice “A” has transferred the said lands to “C” under registered AGP. “C” is not a party to the above proceedings.

1. Now how “B” can recover the money as early as possible?

2. Is there any possibility to attach the lands under the above Agreement of Sale?
3. Can "B" take any criminal action against "A" in this regard.
Adv Archana Deshmukh (Expert) 21 December 2009
There is no possibility for B to attach the lands under the Agreement of Sale as he himself have given the legal notice and also filed the suit for recovery of money showing his intention to revoke the contract. Now he is estopped from enforcing the Agreement of Sale.
No criminal action can be taken by "B" against "A".
n.k.sarin (Expert) 21 December 2009
Parties are bound with the terms and condition of a valid sale agreement.Your case depends on the terms and conditions of the sale agreement.If the said agreement is registered one position is different if not registered position is different.It is not clear from your query that the said agreement registered one or not.
Raj Kumar Makkad (Expert) 21 December 2009
Sarin ji! The quariest has already cleared that the agreement was unregisred. It is important to know the contents of the legal notice and suit filed by B. If he has shown his inability to execute his part of contract then his suit is liable to be dismissed and he cannot take any benefit of the subsequent sale by A to C during the pendancy of the suit. Merely suit for recovery do not give any right in favour of B to get the land attached. if suit for specific performance is not filed then there is no hope of even recovery of any amount and the same shall stand forfeited as per general terms and conditions found in such agreements.
Querist : Anonymous (Querist) 22 December 2009
Respected Raj Kumar ji, Namaste. And also thanks to other experts.
In the Agreement of Sale ( un-Registered) there was no forefiet clause.
The other clause is:"
The parties hereto agree to comply with the terms and conditions stipulated time. In the event of any of the parties commiting default or breach of the terms, the other party shall have the right to claim specific performance of the contract against the defaulting party." like this.
so plz.clarify.Whether "B" is entitled to recover the advance amount from "A" or not?
n.k.sarin (Expert) 22 December 2009
In my opinion with reference to the said sale agreement which is not enforceable by law, purchaser can file suit for recovery of money even there is forfeit clause or not. No doubt content of notice will play an important role in the said suit. As far as specific performance is concerned,I think specific performance of a unregistered sale agreement is not possible under law.Hence the said sale agreement is a receipt of money only.B can recover the money with interest but nobody can tell when, if B comes under the category of senior citizen, he may take its benefit for early decision.


You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :