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.
Raj Kumar Makkad
(Expert) 09 June 2014
You need not worry as no action can be got initiated against you. Reply the legal notice sent by his counsel to the effect that his client had to deposit certain amount within 2 days and had to get the execution of agreement to sale but he failed to do so hence no agreement exists and you are ready to refund the token amount.
pallavi
(Querist) 09 June 2014
Thank you Mr. Makkad 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) 09 June 2014
Thank you Mr. Makkad 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
V R SHROFF
(Expert) 09 June 2014
Reply the Lergal notice, and send a Draft of Rs. 1,25,000/- , showing clearly that agreement to sell is cancelled, as not executed as orally agreed to within two days.
And chapter is closed.
That POA was cancelled/ revoked and you are no more attorney for seller, and do not communicate further with you.
ajay sethi
(Expert) 09 June 2014
you must contact a local lawyer and reply to the legal notice .
T. Kalaiselvan, Advocate
(Expert) 09 June 2014
Very well advised by experts, you must reply to the legal notice, arrange to refund the amount received and proceed further as advised. Better consult a local lawyer and take his advise on the issue and proceed accordingly.
