Hi Sir, I (seller) have made a sale agreement on Rs.100/- stamp paper with one person to sell my plot with advance amount in cash. Term and condition in it: if seller refused to give property , will give double of agreement amount or buyer can go to court for specific performance. if buyer refused than advance money forfeit. before expiry of contract I refused to sell the property and paid the double amount to buyer but my mistake is that no cancel agreement made at that time. original agreement with me and i have also recording between dealer and buyer that he got the double amount. now buyer sent to me a legal notice through advocate that he didn't receive money and make registry in his name otherwise he will file the case against me. Agreement on Rs100/- and not registered. original agreement with me. what buyer can do. can he file the suit against me in court or not.
Send reply to legal notice that as per terms of agreement double amount has been paid to buyer
2) enclose your bank statement to prove return of money
3) if purchaser filed suit for specific performance take plea that agreement t stands cancelled on payment of double amount of advance paid
Sir, advance money and return back money both in cash
Do you have any receipt from purchaser that money has been received by him
Yes buyer can file a suit
At the time of refunding the advance with extra amount, you should have made him sign the cancellation agreement and got it registered
Now matter will go to trial whether you refunded the money or not
If you have received a legal notice then it becomes your duty to give a reply notice denying the allegations in the legal notice.
Whether you have cancelled the original unregistered sale agreement or not, you have evidence for having returned his amount.
You can challenge his properly in the court of law if he is approaching court with the suit for specific performance of contract because basically the unregistered sale agreement if not enforceable and since you have evidences to prove that he had taken back the consideration amount, you can repudiate his claim.
You can contact a local advocate and issue a reply notice suitably
You first of all gather evidence for both the transactions and then fight back properly
You can first issue a reply notice through your lawyer and then wait for further developments to challenge him in the court of law.
Dear Sir/Maam
in the above case as the contract was voidable at your part and in accordance with the terms of the agreement and where the buyer has already taken double compensation from you in accordance with the contract. He can't claim specific performance. If the buyer files a suit against you for specific performance of contract you should in reply file that the contract was determinable (ie revocable) under sec 14(d) of the Specific Performance Act at the instance of anyone of the party. For such contracts specific performance is not allowed. You can also pray for rescission of contract wherein the court will adjudicate a formal cancellation, though that right is already with you on the basis of this agreement.
Thank you
- As per law, such agreement wherein mentioned that on failure by the seller , he will pay double and purchasers amount will be forfeited in case purchaser refused to comply the agreement, having no legal value in the eye of law.
- However, as you have already refunded double the paid amount to the purchaser , then that agreement having become invalid , and further no cancellation agreement needed due to being unregistered.
- Further , you should reply the legal notice send by the purchaser after narrating all the facts with the proof of payment and audio recording.
- Since, you have no documentary proof of payment , then he can file suit against you .
