Payment made without any contractual obligation

The period is only six months and in absence of a written agreement, this period is reasonable to his benefit. The proper procedure would have been for you to send him a notice (before entering into a fresh transaction with a third party), that since he did not turn up, his amount of Rs 1 lakh stands forfeited.

Now your defense (if he prefers to go into a lawsuit) would be the same as above.  In addition you can claim a loss for damages (even if you sold for a higher amount later on) for loss of interest and blockage of funds).

The police has acted very wisely and not harrassed you. It is a practice that a token amount stands forfeited, unless he is able to prove that the transaction did not go through due to you not performing any acts on your behalf. For example if you were required to remove any other occupants, or obstructions or put the place into a proper condition.  But in absence of any such written understanding, you were under no obligation to do anything from your end.

Now, the best procedure would be for you to wait and see what he does.

The only option I see that will take place in due course for a just and peaceful solution, is that  you both will sit together, you pay him the money as is mutually settled (it can be less than 1 lakh) and make out a proper receipt plus an undertaking from him.  This is what will happen in the end. So nothing to worry or lose sleep over.

If you have not faced any loss, it is reasonable to be just.  But being just does not mean that you get bullied by him.

dear , the buyer has given you the cross cheque and it its a receipt and  he can file the case before civil court  for specific performance . but you can get the defence the rest of the sale  consideration to be made wihtin two months and he fails to do so . the earnest money forfeited by you and flat sold to the another buyer. in worst he is entitled for the earnest money of rs 500/-

subhash kumar. adv

Dear Santosh Sir,

thanks a lot for such a prompt reply,

- After 20days of  reciept of payment client given advertisement in newspaper to sell house again(because first buyer told him to sell elsewhere) , so they are making that is the reason for not buying a house.

- That first buyer is asking for return of cash given by him on the basis of sign for rs. 500 and he says he with drawn  all currency notes from bank and he is having proof

- Client suffered huge losses  due to recession in 2nd half of 2008

if you can give your view it will be helpfull

1. for close the issue obtain a indemnity from the first buyer
2. due to the receipt of the payment and client had issued a receipt for the payment it is falls under the mutual contract -specific performance
3. due to the non full fillment of contractual obligation by the first buyer it is come to end
4. you can recover the the necessary charges which has been incurred by you client from the first buyer initial payment and balance can be repaid to him.
5. after completion of the process take witness and submit the copy of the relevent documents to where ever he made a complaint to safe guard the property.
6. by mutual understanding only you have close the issue
7.  

Your quarry has very well been replied in open experts section then why to raise the same in the forum section?

Here also expers are almost same persons.

Dear Makkad Sir,

just registered myself and put this query of forum thereafter immediately i seen experts section so I put  there.

I am thankfull to members like you and this site for such a good and prompt reply.

Regards

Legal Students