Refund of token money
pallavi
(Querist) 05 June 2014
This query is : Resolved
My paternal aunt(bua) had given me a power of attorney to sell her property in Nagpur. one buyer liked the flat and gave a token amount of Rs.1 lac in cash. This transaction of Rs. 1 Lac in cash was mentioned on a plain paper, which had the address of the property, my name and the buyer's name and his address.I and the buyers signed on the back side of that paper on a revenue stamp . There was no other clause, consideration amount of the property or anything mentioned in that paper. After few days my bua decided not to sell the property and asked me to return the token amount. However the buyer refuses to take the token amount and says I have to sell the property to him only. He has also send me a threat mail and a letter from his advocate that he will make a cheating case against me and that I dont intend to returm his money and now I have to sell the property to him only.
I have all intentions of returning his money, he is the one unwilling to take it. Also note that I have not signed any Agreement for Sale. The plain paper I signed dosent have any clause which stops me or penalises me for backout, it dosent even mention what was the total consideraion value of the flat agreed upon.
Please advise what should I do. Legally can he sue me or is it his way of threatening me just to do the deal.
basavaraj shiromani
(Expert) 06 June 2014
as per your quarry, it appears that there is no any agreement of sale in favour of the buyer. you have signed on a blank paper. there is no any reasonable grounds for receiving money from the buyer also. under these circumstances, there are no valid grounds for buyer to purchase the property from you or from the original owner. the question is whether you have answered to the notice issued by the buyer through his advocate. I mean whether you accepted the transaction between you and buyer by reply notice. if not there is no need to worry. let him take any action against you which does not survive and it is a question of time to face litigation but nothing else. so please contact local lowyer and relax
V R SHROFF
(Expert) 06 June 2014
u need to contact local lawyer
Try solve amicably.
pallavi
(Querist) 06 June 2014
Thank you Mr. Shiromani and Mr. Shroff for your prompt reply. I have been trying to talk to the buyer to amicably settle the matter but he is hell bent on suing me legally, sending me threat mails(I have copy of that) and he even went ahead and put his own lock on the flat door (that was to be sold) to scare us!!
I have not yet replied to his advocate’s letter. However there are two points I missed out on stating in my query here. When we had intention of selling the property, the buyer had insisted on an advertisement. So there was an advertisement in a local paper in Nagpur(in Marathi) stating the owner’s name, the intended buyer;s name and asking anyone who has a objection with the sell of the property to come forward in a week’s time. Nobody came forward.The buyer had deposited cash rs. 10000.00 in our bank accout directly after that and gave cash rs. 115000.00. So total token payment in cash by him was Rs.125000.00, this was mentioned in the plain paper, on the reverse side of the plain paper I had signed on a revenue stamp ( It was NOT Rs 1 lac as I had mentioned in my query above).
In view of the above information do you think he can sue me legally. Kindly advise. Thank you.
pallavi
(Querist) 06 June 2014
Also note there is no written permission from my side for giving the ad, the ad was given by the buyer.
Guest
(Expert) 06 June 2014
In view of the POA in your favour, you are still empowered to sell the property. But, your bua's denial of selling agreement in spite of POA in your favour and money receipt cum agreement on palin paper in the absence of any formal agreement by paying stamp duty of appropriate value makes the case complex for which examination of the case related documents become quite necessary. So, it would be better if you consult personally some expert by showing him all the related documents.
basavaraj shiromani
(Expert) 06 June 2014
In my opnion, it is a fit case for dismissal. Therefore nothing to worry but you have to face the legal battle and you will win it
