Legality of non-judicial document
A Thirunavukkarasu
(Querist) 23 July 2012
This query is : Resolved
An agreement was signed on 29.1.2012 by a vendor on a non-judicial paper (Rs. 50) agreeing to sell a plot by accepting an advance of Rs. 50,000 and requested to complete the transaction on or before 17.2.2012 which was also agreed by the purchase by puting his signature. However, the purchaser did not complete the above said transaction on or before 17.2.2012. The Vendor gave one week time orally i.e. upto 24.2.2012 and even on that date also the purchaser did not turn up. Finally, the vendor on 20.3.2012 sold the plot to another party at a lower price due to immediate need of money.
Now the first purchaser demanded the advance of Rs. 50,000 along with Rs. 20,000 within a month otherwise he will charge interest @ 24%.
Actually, the vendor incurred a loss of around Rs. 125000 during the second deal because he needed cash urgently to pay the margin money of Rs. 14,00,000 within the stipulated time for buying a flat.
My question is whether the purchaser legally entitled additional amount apart from the advance he paid in spite of the fact that he was the defaulter and if he executed the agreement on or before 17.2.2012 or 24.2.2012, the vendor would have gained a sum of Rs 125000.
Kindly enlighten the legal provisions in this regard at the earliest.
Yours
Arasu
K.K.Ganguly
(Expert) 24 July 2012
No, the purchaser is not entitled to any additional money. In fact, had there been any 'forfeiture of advance due to non compliance' clause kept in the agreement, the said purchaser would have lost his advance amount also.
