Agreement to Sale

Partho Bhattacharya (Querist) 24 December 2010 This query is : Resolved
Dear Sir, I have entered into an agreement to purchase of commercial property as a Director of my company on the 7th Day of August 2009 and paid an advance amount of Rs.18lacs through cheques & Rs.2 lacs in cash on a Rs.50/- stamp paper.

My banker cleared the cheque from companies OD account after getting proper legal / valuation reports done by there empanlled lawyer & valuer. The cheques were cleared by the then branch head after allowing TOD in my account. Three cheuqes were issued in favour of the seller.

As bank refused the financing of the said property after getting all due delegence only in June 2010, as I have approached the seller to refund the money but he is not very keen on doing that.

Whereas the Bank marked my company account as NPA on 30th June 2010 and hence issued notice under Sarfaesy Act after giving hopes of doing the proposal as the company as informed them regarding downfall of sales & requirement for immediate shifting of showroom since the November 2008 which are part of records.

Sir, Pls advise me whther can I claim damages from the bank as they have allowed non trade transcation in my account fully knowing that it is meant for property purchase?

Pls also advise whther under Indian Contract Act, 1872, I can get refund of advance money paid to the seller, as there is a built in provision of incomplete agreement due to unforeseen & compelling circumstances where as in my case it is a total loss of Business.

Please advise.

With Best Regards

Partho Bhattacharya

08802147294

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Devajyoti Barman (Expert) 24 December 2010
Bhattacharya babu, first confirm whether the bank granted the home loan in favour of your company or not. Generally no nationalsied bank or privatised bank specially in Kolkata disburse the loan amount on the basis of a mere agreement. So the conduct of the bank is not clear.
Another thing unless the property is registered then how the bank took it as morgage. Need clarifiaction on this aspect too.
That apart if the sale is not completed then the seller is bound to refund the earnest money.
On further details the necessary advice could be put forth.

Partho Bhattacharya (Querist) 24 December 2010
Dear Sir,
I extend my sincere gratitude to you for replying to my quirey.

Dada, I am holding a OD account with Syndicate Bank, as due to recession I am facing financial setbacks & loss of business. My other property is motrgaged with bank. I have applied for a fresh application for purcahse of new commercial property in the year 2009. Bank manager was suspended due to some irregularites in the bank & almost every account holder suffered due to that.

On assurance of the bank I have deposited earnest money to the seller & now neither bank is extending its support nor the seller intends to return back the earnest money.
1.Pls advise how can i get the earnest money back?
2.As due to bank managers neglegency me & my company had suffered huge financial setback,as a customer can I seek damages or not? I have got all necessary documents to support my claims.
Thanks again.
With Best Regards
Partho Bhattacharya

s.subramanian (Expert) 24 December 2010
1. You can get back the earnest money deposit.

2. But you cannot seek action against the bank since it is discretion of the bank to grant you the loan or not. The allowing of the OD for non trade purpose may be a mistake on the part of the bank but the same cannot clothe you with a right to proceed against the bank.

Partho Bhattacharya (Querist) 24 December 2010

Mr.S.Subramanain,
Sir,
I am really thankfull for your advise, please suggest how do I proceed to get back the Earnest money from the seller as he is not ready to do that.
With Best Regards
Partho Bhattacharya

Agreement to Sale

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