recovery of money
6 months ago
Sir vendee entered into an agreement with vendor to purchase a house on 11-11-2019 by way of paying advance of rs.1000000, but the vendor entered into agreement with vendee without disclosing the agreement property was in court attachment. Bringing the same fact before the vendor, after due discussions the vendor agreed to clear the court attachment and affect the registration within a short span on 18/2/2020. But the vendor not stand on his words, not affected the registration, with that the vendee got issued a legal notice on 12/8/2022 with a demand to return the agreement amount with accrued interest. After acknowledging the notice, approached the vendor approached the vendee promised to repay within a short span, and postponed the same on different pretexts, finally the vendor instead of returning the agreement amount, got issued a legal notice to to vendee dated 4-10-2023 to forego the advance amount as the vendee failed in committing the registration within specified agreement period and demanded to pay the damages of Rs.10000/-. Can the vendee file a money recovery suit against the vendor? Other alternative modes to get back the advance amount with interest. Explain the limitation rules. Can the vendee instute a suit under specific performance of contract?
An agreement for the sale of immovable property having disputed or defective title or encumbrances itself nullifies the document as being infructuous and unenforceable under law. so based on that invalid document(AOS), you may not be able to succeed in the civil suit either for specific performance under the Specific Relief Act or money suit for recovery of earnest money you paid to the Vendor for the purpose. The onus solely lies upon the vendee or purchaser of the property to verify the status of the title of the property and satisfy himself about its encumbrance status before entering into an Agreement for Sale, so as the purchaser, on that very ground, you cannot even prove the charge of cheating or fraud against the Seller before the Court. The direct transaction pertaining to the sale or purchase of immovable property does not come under the purview of the Consumer Protection Act unless it involves the supply of goods or hiring a service for the development or construction of a property. So, now on receipt of legal notice dated 04/10/2023 from the Seller forfeiting your advance gives you a fresh cause of action that itself proves his bad intention to cheat you being aware of the disputed title of the property, to file a criminal suit for cheating and fraud under Sec.420 of IPC against the Seller with a prayer for an order for recovery of money paid against the deal. Reach out to an experienced Advocate dealing with property matters for guidance and steps.
The vendee can file a money recovery suit against the vendor to recover the advance amount with accrued interest. The legal notice sent to the vendor and their acknowledgment can be used as evidence in court. The Indian Limitation Act, 1963, prescribes a limitation period of 3 years for filing a suit for recovery of money from a contract. The clock starts ticking from the date when the amount becomes due, which would be the date when the vendor failed to fulfill their promise of registration (18/2/2020) or from the date of acknowledgment of the notice (if applicable).
The vendee can also consider instituting a suit for specific performance of the contract. Specific performance is a remedy where the court orders the party in breach to fulfill their obligations under the contract. However, specific performance is a discretionary remedy, and the court will consider various factors, including the conduct of both parties and the circumstances of the case. It's important to note that specific performance is not granted as a matter of course.
Depending on the facts of the case and the nature of the agreement, the vendee may explore options under the Consumer Protection Act if applicable.
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