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Anil Sharma (Owner)     28 February 2012

Sale deed cancellation due to cheque bounced

I had sold my land in April 2004 for an amount of Rs 500,000. The buyer had issued a post dated cheque of Rs 500,000 dated 30 May 2004. Immediately after 10 days of the sale deed registration, the buyer came to knew that this site was under litigation and therefore when i submitted the cheque for clearnce on 30 May 2004, the cheque was bounced with the wordings "Insufficient funds". So, i called the buyer asking him the reason for bouncing the cheque. The buyer told that since I sold a site which was under litigation, he immediately removed all the funds from his account. I promised him that i would clear the litigation. It took me 6 years to clear this litigation. However, in 2006 I had issued a notice under 138 of NI Act to the buyer and the buyer called me on phone and told that "once the litigation is over, I will pay the entire amount of Rs 500,000". Then in January 2010 when the land got cleared from litigation, he refused to pick my calls and later in that year, he refused pay the cheque amount of Rs 500,000.

Now it is 2012, please advise me on:

What action can i take against the buyer?

What remedy can I seek from the Law?

Can i get my land back? or can i only recover the money? and if money only, then how much money, since it has been 8 years of delay?


 4 Replies

Anil Sharma (Owner)     28 February 2012

Please also let me know the time limits to file a suit for sale deed cancellation or file a suit for recovery of cheque amount ? This land was purchased by me in 2000.

Shantilal Pandya ( Advocate)     28 February 2012

you  have  a very  hopeless case , time litmit  for  filing  recovery  of purchase  price is three years , cancellation  for  sale  deed is  not available  since the title  passes on registration,   ,the fact that  the  purchjase price  is unpaid has no relevance,   and it is  no ground for  cancellation of  sale deed, only   remedy  is to  sue for  sale price   which is also time barred , you could have  filed  suit  for recovery of sale price immediately  on dishonor of  cheque ,, you  are not  well advised in past , the notice   u/s  138 of N I Act    also  might be  time barred  

 your  case  is  required   to be examined in detail  with  all  documents, the  the nature of litigation in respect of the property  and the result thereof is  also  not stated

Shantilal Pandya ( Advocate)     28 February 2012

 how ever the purchaser  cant retain both  purchase price  and the  land,you  can ask for  making good the  loss  sustained by you    unfortunateky  that  remedy  asl  appears to be   time barred , if you  are interested  you  can submit all releveat papres  and  arrange  a  conference with me  

m.arunprakaash (advocate)     08 March 2012

Mr.Shantilal correctly said.

Try to appeace the the purchaser and cancell the sale deed by both of you executing DEED OF CANCELLATION of the said sale or else make RECONVEYANCE DEED thereby transfer the property in your name.

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