A property was divided amongst five siblings as per the court order specifying the length and breath of each portion.
Four out of five had singed (in the year 2006) a stamped receipt (Rs.10) specifying that “an amount of twenty five thousands only being received and the balance will be paid at the time of registration of so and so property having door no….at a place”
The stamped receipt does not have any other clause other than the above mentioned line. The receipt does not specify the sale consideration, time limit etc…etc..that are essence of any contract. The so called buyer neither turned up for full fledged agreement nor paid any further amount. The four persons returned the amount by cash but the person now says that he never received any amount back from the four siblings. What is the fate of this dealing?
The four siblings and a general power of attorney on behalf of fifth person singed a sale agreement with another buyer for sale consideration of Rs.1.05 crore out of which the buyer paid Rupees three lakh each totaling Rs.15 lakh to all five persons with a stipulation that that the remaining amount shall be paid within 120 days of this agreement and failing which the seller has right to terminate the contract and refund Rupees two lakh from each persons totaling Rs.10 lakh to the buyer. The balance rupees five lakh will be forfeited as being the sum for breach of contract. In the event of seller refuse to sell the property to the buyer and breach the contract, the total advance amount of Rs.15 lakh shall be refunded to the buyer.
The buyer, despite repeated attempt by the sellers over phone and in person, did not turn-up for registration and not paid the remaining sale consideration even after expiry of 120 days as stipulated in the agreement.
Under these circumstances, the sellers on being frustrated with the deal want to cancel the agreement. What is the procedure to cancel the agreement? Is it necessary to serve notice to advocate or by an advertisement in newspaper? What is the procedure to come out of this deal(s)?