Validity of Receipt issued by othan than the real owner?
Querist :
Anonymous
(Querist) 18 November 2009
This query is : Resolved
Respected Sir,
“A” is the real owner and “B” is the proposed purchaser. “C”(3rd party) is a relative of “A”. Now “B” has approached “C” and asked to sell the lands of “A”, because of the relation in between A and C. Accordingly “C” has accepted to sell the land to “B” and after taking a token advance, he executed a Receipt in favour of “B” mentioning the agreed sale consideration amount, total extent of land etc., and also further agreed to execute an Agreement of sale within 10days from this day, and also further agreed to execute a Sale deed in favour of “B” or his nominees. On some other reasons, now A and C are not interested to sell the lands.
In this I want to clarify that:-
1) Whether “B” is having any right to claim against A, on the basis of a Receipt.
2) How far the stamped Receipt issued by C is acceptable and binding on “A”?
3) What steps “B” is going to take against A and C for the lands?
A V Vishal
(Expert) 18 November 2009
1) Whether “B†is having any right to claim against A, on the basis of a Receipt.
Ans. No
2) How far the stamped Receipt issued by B is acceptable and binding on “A�
Ans. Nor at all
3) What steps “B†is going to take against A and C for the lands?
Ans. B can file a suit against C for recovery of the money given.
The logic is simple, A is the real owner, C is only a relative and further the said C doesnot hold any POA from A regarding the sale of the land in question. Hence it is not binding on A to complete the transaction entered by C with B.
Raj Kumar Makkad
(Expert) 18 November 2009
You are telling each thing in your quarry and your mind also might have replyin that you have committed heavy mistake. A is not liable at all. Now question shall arise how to recover the advance money. It is not so easy if the C is dishonest. I suggest in that situation to file a criminal case under section 420 against him stating therein that he dishonestly told that he is the owner of the property and shall sale it and the complainant beleiving upon him made a contract and gave him earnest money and now when he refused to register sale deed then it came to reveal that he is not the owner of the property agreed to be sold thus a fraud has been played with you.....
Adv Archana Deshmukh
(Expert) 18 November 2009
Vishal sir have rightly replied. I go with Vishal sir's reply.
Vineet
(Expert) 20 November 2009
I agree with Shri Makkad.
You know that you have committed a big mistake. No liability whatsoever arises against A as neither he his party to any deal between B and C nor he has authorised C to act on his behalf.
Coming to recovery of money from C, I wonder whether in the given facts and circumstances B will be able to do so. From the querry it appears that B very well knew that property belong to A, still he entered into an agreement with C. It all now depends upon what documents B posess to prove dishonesty, cheating and misrepresentation by C and his ignorance about the facts to build up a case of recovery against C.
Querist :
Anonymous
(Querist) 20 November 2009
In this C is also ready to return back the advance amount to B and whereas B is also knows that C is not the real owner and A is the real owner.And all the xerox copies of the documents have been received by B from C in this, before exeuting the said receipt. Hence there is no chance to claim by B that C has cheated in this regard.
Vineet
(Expert) 20 November 2009
If C is ready to refund the money, B is lucky and should immediately go ahead with refund.
There is absolutely no chance for any right of B against A.
