Sale of machinery

Ravishanker (Querist) 25 January 2014 This query is : Resolved
Sir,

I have machinery worth 10 crores against Bank Finance. As the unit was in loss I decided to sell the machinery. One prospective buyer approached me and we agreed for a sale price of 3 crores. I had asked for an advance of 15%. However, they paid me 20 lakhs for which I issued an advance stamp receipt. They promised to give the balance money in a weeks time along with the balance of 15% which they didn't do till date. In the meantime I got another buyer who has agreed to pay 4 crores. I am yet receive any advance from them. I am refunding the entire 20 lakhs to the first buyer. I do not know how they would respond. Can anyone help me with the legal issues and whether my position is correct?

Thanks in advance.

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Devajyoti Barman (Expert) 25 January 2014
If you have got the new buyer then sell him and return the advance to the earlier buyer. Forget the nitty gritty of agreement for the time being.

ajay sethi (Expert) 25 January 2014
you are getting one crore more than earlier offer . first refund rs 20 lakhs as buyer has failed to pay balance amount within one week . then sell it to person who has offered better rate . do inform the bank and obtain consent if porvided under terms and condiions of bank finance

Rajendra K Goyal (Expert) 25 January 2014
Well advised by the experts, agree with the advise.

Guest (Expert) 25 January 2014
Any viable advice depends upon examination/ analysis of the terms of agreement if any entered in to with the previous party as well as NOC from the bank, if pledged against loan.

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