1. Mr. Harish's original query stands answered. In summary: If there is no clause in the agreement, for automatic cancellation after a certain period, agreement continues. If the purchaser has not fulfilled his obligations within the time stipulated, the seller has to take the initiative to issue notice of cancellation and offer of refund of whole/part advance/forfeiture of the advance as the case may be, as per relevant clause of the agreement. If seller does not issue notice, the agreement continues. If the purchaser issues notice for registering sale deed obtaining the balance consideration, and the seller does not respond positively, the purchaser gets a right to sue for specific performance or refund of advance, at his option. Limitation is three yearsfrom the date of the agreement+time stipulated for performace, if any.
Understamped instrument can be pointed out in the written statement, and suggested as an issue in the draft issues submitted to the court, and may be prayed to be dealt with as a preliminary issue. Written instructions to the advocate on this issue, be provided since practically 99% advocates in subordinate courts take marking of documents very casually.
2.The second para above, answers Mr.Manish's query, as understamped instrument can not be admitted into evidence. But is is a curable defect.
3. Regarding Tereza's query, it appears that the case of the purchaser is hit by limitation, in the absence of fullest details with dates of any and all correspondence from the date of the agreement till now, and also exact extract of the clause of the agreement relating to time limit prescribed, and also penalty/default/forfeiture/refund clause(s). Generalisations are grossly insufficient to carefully scrutinize limitation aspect. It also appears that it was not wise to have spurned the offer of refund of advance in 2008, since even that can not be agitated upon now, due to limitation.
4. Regarding DK's query, no dates are given. So, for the present, issue notice to the seller calling upon him to execute sale deed asserting readiness for payment of balance consideration, throughoout the interregnum and even now and clearly stating as to how the seller had been dodging. Repost query with full details when a response is received.
5. Regarding Udaya Kumar's query, if the seller had not received any notice, prior to the notice issued by him,from the purchaser, and as per agreement he had no more obligations to be fulfilled except receiving consideration and registering sale deed, he can issue a second notice quoting the first one, and enclosing a demand draft for the amount of advance admitted as refundable. This letter too is likely to be returned undelivered, if the Purchaser repeats his earlier act. In this second notice, the fact of the earlier notice, getting returned undelivered should be mentioned.
The second notice, alongwith a copy of the first notice, should also be sent by courier service, with proof of delivery arrangement with the courier. If email ID/FAX of the purchaser are known, notice shall be sent by these also.
Instead of Demand Draft, if the account number, bank and branch name of the purchaser are known, straightaway, the refund of advance can be made by funds transfer through RTGS. This will obviate the purchase of DD and lock up of money. The returned registered post envelopes should not be opened and preserved in the same condition.
Thereafter, if sale is effected to a third party, even if a litigation is foisted upon by the purchaser, it can be successfully defended.