Respected All,
The facts of the case are as follows:
1. I decided to purchase a property from a dealer who's uncle owns it and agreed to pay Rs. 2,00,000/- as a token amount.
2. I signed the agreement on 1.3.2013 which the dealer took to send to his uncle in another state. I also gave a check to the dealer of Rs. 2,00,000/- against his uncle's name on the same day.
3. I was supposed to get the signed agreement by the uncle by Wednesday 6.03.2013. but I did not. I called the dealer two or three times but he kept postponing it and said i'll get it the next day.
4. I was not convinced by his behavior and found it suspicious and thus decided to do "stop payment" of the cheque, preceded by insufficient funds in my account, and informed the dealer about the same the next day.
What would be the legal consequences if the dealer decides to file a case against me for fulfillment of agreement or deposit the cheque under NI Act?
Please also find the other clauses of the agreement mentioned below:
1.The vendor hereby agrees to sell the schedule property to the purchaser and the purchaser agrees to purchase the schedule property for a valuable consideration of Rs. 52,00,000/-.
2. The purchaser has paid a sum of Rs. 2,00,000/- as advance to vendor through NEFT service to the vendor's account in 1.3.2013 and the hereby acknowledges the receipt of the aforesaid sum.
(NOTE- the same amount was given by me via cheque as mentioned above in the question.)
3. The purchaser shall pay the balanced sale consideration of Rs. 51,00,000/- at the time of execution and registration of the sale deed conveying the scheduled property.
4. The vendor shall complete the sale transaction within three months from the date of agreement of sale.
5. The vendor hereby assures the purchaser that the scheduled property is free from all encumbrances , liens charges other damages, court case, mortgages, restrictive covenants, lispendens, acquisition and requisition proceedings, minor claims, or claims of any other nature whatsoever.
6. Any dispute or differences arising wither with regard to the interpretation or the implementation of this agreement, the same shall be resolved in accordance with the provisions of The Arbitration and Conciliation Act,1996.
