ganeshsubramany 15 January 2015

Recovering the advance paid for buying land

I paid an advance towards buying a piece of land. I drew a formal contract using a lawyer on a stamp paper.

The land owner has taken a bank loan pledging the land and he has defaulted on the loan. My lawyer vetted the loan docs with the bank and the encumberence document from the municipality clearly states the landowner's name with no other claims.

The land owner is unable to conclude the transaction as he claims that he stands surety to another loan which is also under default. Hence the bank will not release this land document without clearing the other loan.

I demanded my advance back as he was unable to conclude the transaction. He is unable to refund it.

What should I do to recover the advance paid? If a suit is filed, would it block his bank accounts and freeze his salary. Would police arrest him and put him in jail?

Kindly advice.

Regards

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3 Replies

dr g balakrishnan (advocate/counsel supreme court) 16 January 2015

file recovery civil suit please and you have to keep alive your claim lest lost under limitation Act,

adv.raghavan (Advocate,9444674980) 16 January 2015

As advised by the above expert, go for the same,along with additional prayer to attach his salary and other things.

If the contract period is over and still he is not refunding the amount file criminal case against him, there is no point on going for this land anymore.

T. Kalaiselvan, Advocate (Advocate) 19 January 2015

If you have entered into a sale agreement, you may give a notice for performing his part of contract by expressing your ready and willingness to perform your art of contract, If the notice fails to invoke any response, you may file a suit for specific performance of contract with an alternate prayer for refund of your advance amount and also you may pray to attach his property or salary recovery for the same if he still fails to refund in an EP filed subsequently.