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bhasan (mba)     06 November 2009

Land purchase - seller sends Deed of conveynce cancel notice

I am an NRI and purchased a piece of land from company X, I have allotment receipts of my plot from company X, all brochures, marketing material and paid full amount in instalments to the company X. At the time of registration company X showed that as if I am buying land from company Y and Deed is signed between myself as buyer and company Y as seller. They told me that company Y is their group company. There was a payment receipt in the agreement signed by company Y stating that they have received money from company Y.

Now company Y sent me a legal notice stating that cheque is bounced and deed is cancelled. They have threatened me in the notice that they will take legal action if original deed is not returned to them with cancellation immediately. Even the notice sent is dated one month back dated. They have even threatened that I will be charged with bounced cheque which I have never issued.

I have paid full amount to company X for which I have full proof. As I do not stay in India, they have sent notice on my relatives address who are very terrified. Company X informed me now that there is some dispute started between company X and Y and I need not take any legal action and wait for 1-2 months to see how events take shape. Please advise what shall I do?


 9 Replies

adv. rajeev ( rajoo ) (practicing advocate)     06 November 2009

Dnt do anything just keep quiet becaue notice is not served on u.  Service of notice is must.

bhasan (mba)     06 November 2009

Just to clarify that they have sent Legal notice from some High court lawyer by registered post to me on the address written on deed of conveyance.

H.D.Kumaravelu (Advocate)     06 November 2009


As per your version the land belongs to company Y why did you make the payment to company x, is company X holding any power to sell land of company y ? How did you make your payment in cash or D.D in whose name?

bhasan (mba)     06 November 2009

Company X stated that the land belongs to them and I paid instalments and I am holding all proofs which states that company X marketed the plots and took booking. On the day of registration they stated that land is in the name of their group company and I should not be worried as land is getting transferred to my name.

bhasan (mba)     06 November 2009

I made all my payments by cheques which are acknowledged by company X stating that this is against the plot mentioned.

H.D.Kumaravelu (Advocate)     06 November 2009

Give a complaint to the police against X and Y for cheating and threat within whose jurisdiction the land in dispute is situated.

G Vivekanand (Advocate)     07 November 2009

Dear Mr. Bhasan It is first to be clarified that how come Company Y possessed your cheque, Further if you have not issued the cheque in issue you can verify the cheque no and the drawee bank from the notice issued and verify, whether the cheque belongs to you or it is by mistake the company y has issued the notice to you. If it is not your cheque you may issue a reply to that effect to company y marking a copy to Company X, if the cheque belongs to you then you must verify the purpose, person to whom the cheque was issued and issue reply accordingly. It is better to reply at the earliest.

K. Rajendra Prakash (Advocate)     11 November 2009

Did you verify that the Company  X is holding any power to sell the plot? Payments by cheques were acknowledged by company X stating that this is against the plot mentioned. Company X stated that the land belongs to them and basing on their representation you paid consideration to them. You stated that "there was a payment receipt in the agreement signed by company Y stating that they have received money from company Y".  Please clarify this.

raj (Lawyer)     11 November 2009

I have following questions,

1) If "Y" is not having title to the land, in what capacity has it sold the plot to you?

2) You are right in saying that you made payments to "X" (I assume in its name only),  than has it confirmed in the deed of conveyance that he is the one appointed to market plots on behalf of "Y" and has authority to receive money against plot on behalf of "Y"

3) Assuming if the point No.2 is not takne care of, did you examine the title of the property before purchasing the same? And if "X" has stated that the payment received by it is against the land of "Y", has "Y" confirmed the same in sale deed? And as you say, "Y" has received the payment and cheques were isued in the name of "X" than how "Y" is able to claim the amount of cheque which is not issued to it?

4) Regarding Notice, is the cheque mentioned therein is the same as the one which is given to complete the sale transaction?

5) After varifying the point 4, you should sent reply to notice, narrating therein all the facts including that of back dated notice thing. As stated by learned senior friends, it is advisable to initiated counter proceedings of fraud against "x" and "Y" PROVIDED you check all the above mentioned details, take an opinion on the subject matter. Why so? cause if the cheque forms part of the sale transaction than the vendor has not received full consideration against the sale therefore, shelloq knowledge over the issue can bring torubles for you as well.

Hope this may help.



The best course would be to initiate counter proceedings for cheating, if found so, against "X" and "Y". As suggested by learned senior's hereinabove,

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