Don’t accept any post dated cheques

2) Rs 60 lakhs is substantial amount to accept by PDC

3) only if full payment is made should you execute registered sale deed

4) on dishonour of cheque complaint under section 138 NI is maintainable

5) cheque bouncing cases take 6 years to be disposed of

6) you can sue the purchaser to recover Rs 60 lakhs but that would again take years to be disposed of

The sale will become invalid if the cheque bounces. Because the consideration as per the sale deed was not paid.

Hi, the cheque is only valid for 3 months , from the date mentioned on it ... If the cheque gets dishonoured , the sale deed become null and void ..you can also register a FIR under section 420 IPC

Tell me how you will get Rs.2.6 crore post registration. Complete payment of Rs.4.8 crore is required to be paid before registration of land property. Secondly, the validity of the cheque is three months and you said that the dates of the cheque will be current date. No body take cheques for registration of property. The buyer is required to pay Rs.60 lacs by DD before registration of land property. The facts given by you itself are confusing.

My sincere advise is to get the property registered on getting the complete payment. Why you are in hurry to register the property in favour of buyer without receipt of consideration amount. Let it be registered on receipt of complete payment of Rs.4.8 crores. Something is fishy. In case the buyer is not ready to make entire payment, return his Rs.2.6 crore and find out another buyer.

If cheque is bounced then you can send legal notice within 30 days of such bounce and if he does not pay money the you can either file criminal case in JMFC court under sec 138 of Negotiable Instrument act or you can file civil case in civil court for recovery of amount.

Tempted though I am, I file myself unable to comment on potential points of failure in your particular arrangement without the actual agreement to sell before me. I will therefore limit myself to the eventuality that you referred to in your question: in which the post-dated cheques in question are dishonoured while sale deed has already been executed.

You will have recourse to the Negotiable Instruments Act in such an event. The drawer of a cheque becomes liable for punishment and fine when that cheque is dishnoured due to insufficiency of funds. After a cheque is dishonoured and the payee is informed of the same, he is required to send a legal notice demanding that the drawer pay up. The drawer than has 15 days to do so, failing which the payee can file a complaint under Section 138 of the Act against him.

Note that suit for recovery of money (a summary suit under Order XXXVII CPC at that) is also maintainable; in fact both remedies can be pursued at the same time. However, people usually stick to the complaint under the NI Act as the fine contemplated under Section 138 thereof is directly related to the cheque amount inasmuch as it says that a fine up to twice the cheque amount may be imposed on the drawee.

Hope that answers your question.

1. At the time of execution of sale deed it is most unwise to take PDC from the buyer. If the cheques are dishonoured on presentation then you will have to seek your remedies under NI Act and before civil court which will take years. Always take demand drafts.

2. If the cheques are dishonoured on presentation then you will have to seek your remedy of filing a complaint case under Section 138 NI Act which begins by sending a demand notice to the drawer of the cheque within 30 days from the date on which the bank notifies the payee about dishonour of cheque.

No if there is current date on cheques it expires after three months so you can take undated cheques mention cheque details in the sale deed.

A cheque is valid for three months only. Current date cheque cannot be put in bank after 6 months.

If the cheque bounces you can file 138 NI act proceedings against the buyer. You can also file a summary suit to recover the dues.

You should not be worried about the bank's involvement in it because the bank is not going to pay you that Rs. 60 Lakhs.

Hence you can make a mention in the registered sale deed that the sale deed can be unilaterally cancelled by the seller if the sale consideration cheque is bounced and returned for insufficient funds or for any reasons without payment.

Plus, you should not allow the cheque presentation period to stretch for 6 months because you may not be able to cancel the registered sale deed if it is barred by limitation.

In the event of bouncing the cheques given by the buyer, you are well with in your right to go against him under section 138 of negotiable instruments act which is of penal/criminal consequence and it may pose a dent on your sale agreement and eventually hampers the sale with the concerned buyer. Consequently, you have a civil remedy of filing a suit. For specific performance of the contract since giving the cheques as sale consideration is essential to your sale agreement. Kindly note that both the actions would lead to imprint hasty actions on part of you; that you are cautious about preserving your rights in the transaction from the beginning, lest you do not have issues with doing away the sale.

if full consideration is not being paid to you on registration then do not hand over the possession of the land

hand the possession to buyer only when entire money is paid to you

if the buyer has taken a bank loan then where is the question of paying the consideration in instalments???

if the bank has agreed to sanction the loan then that money will be paid to you by the bank and the buyer then has to repay it to the bank in instalments