How to cancel sale agreement and irrevocable gpa

manohar reddy (Querist) 18 November 2022 This query is : Resolved
my father purchased a land in bangalore. After few years he decided to sell the property. Through some mediators we agreed to make a sale agreement and irrevocable gpa to the buyer for a consideration amount. The buyer promised to pay us through post dated cheques. But after representing the cheques in bank all the cheques were stopped (stop payment ) by the buyer. After a long fight we came to know he is a big fraud and done the same thing to many other people. He is not ready to pay us the money he promised. We can have not received even a single penny from him. Now my question is can we cancel the sale agreement and irrevocable GPA. Few lawyers suggested us that we should pay the stamp duty to court of 10 lakhs. My property is an agricultural property. I have not received evean a single rupee from him. Should I pay the stamp duty. I am only in possession of land.

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A father sold land in Bangalore via a sale agreement and irrevocable GPA, with payment promised via post-dated cheques. The buyer stopped payment on all cheques and is a known fraudster, having paid nothing. The seller is seeking advice on cancelling the agreement and GPA, especially concerning a lawyer's advice to pay a substantial stamp duty. Experts generally agree that since no consideration was paid, the agreement is void and can be cancelled via a legal notice, potentially avoiding court fees. However, the buyer's name appearing on the Encumbrance Certificate complicates matters, suggesting a court process might be necessary.

kavksatyanarayana (Expert) 18 November 2022
An agreement made without passing any consideration is actually void. What was the clause or terms of the agreement? You can terminate the agreement by giving notice to the buyer stating that you are no more interested to buy the property since he has not paid any advance amount towards the consideration of the sale agreement cum GPA so far.

Consult a local lawyer and take decision as per his further advise after seeing the agreement paper.

Advocate Bhartesh goyal (Expert) 18 November 2022
Yes, cancel the sale agreement and gpa immediately by issuing regd post notice to buyer as you did not receive any sale consideration from them.

Dr J C Vashista (Expert) 19 November 2022
I concur the opinion and advise of senior experts.
The agreement remained without consideration, it is void / non-est in law and has to be cancelled by a notice to the drawer of the cheque / vendee of subject property.
GPA stands automatically cancelled when the agreement is cancelled, however, it may be preferred to cancel the GPA as well by issuance of a notice by the executor / vendor of subject property.
Did you lodge police / court complaint for cheating and fraud committed by the drawer of cheques subsequently stopping payment by him/ her ?

manohar reddy (Querist) 19 November 2022
yes we a lodged a police complaint

manohar reddy (Querist) 19 November 2022
But my lawyer said we need to pay stamp duty of 10 lakhs to cancel it through court. But i have not received any amount . Should I pay the stampduty to cancel the sale agreement.

Advocate Bhartesh goyal (Expert) 19 November 2022
You need not to file suit for cancellation of agreement, just terminate/cancel agreement by issuing legal notice thats enough.

Dr J C Vashista (Expert) 20 November 2022
No Court fees is required to be paid to cancel the agreement.
You need not approach and file any case in the Court, just issue notice to vendee qua cancellation of agreement.

manohar reddy (Querist) 20 November 2022
but his name is coming in EC (Encumberance certificate). They said it should be cancelled through court only. Just issuing a notice is enough to cancel a sale agreement and irrevocable gpa is enough?

kavksatyanarayana (Expert) 20 November 2022
Issue him a legal notice and file a case against him for fraud and cheating consulting a local lawyer.

Dr J C Vashista (Expert) 21 November 2022
You have stated, inter alia, that, "...his name is coming in EC (Encumbrance Certificate)..." Can you find out how does his name appeared in EC when sale/purchase transaction is still under "agreement to sell" stage and yet to be complete / registered.
Facts posted are vague and confusing.
It is advisable to consult a local prudent lawyer for proper analyses of facts and professional guidance / necessary proceedings

P. Venu (Expert) 27 November 2022
Why the GPA's name in the encumbrance? Why the requirement to stamp duty to cancel the GPA? Has the GPA executed any conveyance deed?

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