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2 DD payments cancelled due to banks error. Can seller cancel registry
29-Aug-2023 (In Property Law)
We registered a flat recently. We gave 6 DD's as payment. Now they started encashing it. 2 DD's have been rejected. Now the seller is telling me, he will cancel the registry. Can he do that?
The seller cannot cancel the registry by a unilateral act and can only be done through the process of the court. Also non payment of consideration is not a reason to cancel the sale unless the deed says so. However he can surely sue u for recovery of the amounts in the 2 DDs.
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Adv. Vanshdeep Dalmia
Delhi | 100+ Answers
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How do I write a cheque payment?
Information about the bank: The check contains the name and address of the financial institution.
IFSC is a 11-digit unique code that is a combination between alphabets and numerals.
Payee Information: Here, the name of the payee must be mentioned.
Date box: Enter the date, month and year.
Can I buy property with cheque?
Property buying and selling requires a lot of caution and wisdom. To ensure that you understand the nuances of purchase and sale, and to protect part payments, it is necessary to sign a contract to sell. It is always best to pay by cheque.
What is the process of paying by cheque?
The cheque is a piece of official paper that your bank issues to you. Its a little like an IOU. After the company or person pays your cheque, the bank of the other party will ask your bank to transfer the money. This usually takes between one and two business days.
In a transaction for sale of immovable property, seller only gets the property registered in the name of the purchaser only after receiving the whole of the sale consideration. Even the sub-registrar asks the seller, before registering the property in the name of the purchaser as to whether he has received the complete amount as mentioned in the sale deed.
Sometimes it is the condition in the sale deed, when the payment is made at the time of registration of sale deed by demand draft or by any other mode, that the purchaser undertakes that the seller will receive the payment at a date latter then the date of registration of sale deed and if the seller is not able to receive the payment then he will have the right to get the sale deed cancelled.
To avoid such situation, it is the duty of the purchaser to make the payment to the seller against due acknowledgement or by getting the demand draft encashed from the bank by solving the problem if any in the bank who has issued the same.
Sometimes it is the condition in the sale deed, when the payment is made at the time of registration of sale deed by demand draft or by any other mode, that the purchaser undertakes that the seller will receive the payment at a date latter then the date of registration of sale deed and if the seller is not able to receive the payment then he will have the right to get the sale deed cancelled.
To avoid such situation, it is the duty of the purchaser to make the payment to the seller against due acknowledgement or by getting the demand draft encashed from the bank by solving the problem if any in the bank who has issued the same.
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Adv. Anuj Arora
Delhi | 25+ Answers
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Since in case of Demand Drafts the money is already paid to the bank as custodian for the beneficiary of person in whose favour of Demand Draft is made, the rejection of duly made DD can not be said due to your fault. You should ask the bank about reason for such rejection. Further the seller can not cancel the registry as you did not have any intention to defraud or cause loss to the seller and above all it was not rejected due to any of your action.
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