Refund of advance amount paid against non delivery of material


I have paid 3lkh advance for some purchase which is confirmed by mail for delivery of material with in 1 week but the vendors fails. In between I send many reminder mail but status was updated hence I cancel the order on mail ask for refund. Now they are not ready to payback the advance and trying to sale the material forcefully which we can't take now. Suggest what to do. They are also asking for the balance payment and ground rent as well. Quotation received on 28 feb and asked for 50% advance but agreed for 30% advance and I paid the same. I sent continuesly mail regarding despatch but no response se till the delivery date so I took material from other vendor as it was urgently required. All the communications are made in mail. Suggest what to do

Answers (2)


191 votes

There is a breach of the contract by the Vendor/Supplier and hence a suit for recovery of the amount paid along with interest can be filed in the district court. As per Section 55 of the Indian Contract Act, 1872, in a contract, where time is essence, if the promisor fails to do the thing promised at or before the specified time, the contract or so much of it as has not been performed becomes voidable at the option of the promisee. Also, Section 74 of the Contract Act read along with Section 73 makes it clear that in every case of breach of contract, the person aggrieved by the breach is not required to prove actual loss or damage suffered by him before he can claim a decree. The Court is competent to award reasonable compensation in case of breach even if no actual damage is proved to have been suffered in consequence of the breach of a contract.


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192 votes

There is no default by your side because the vendor not full fill the conditions of the contract which were done between you and him. And you can also go to the court for your advance payment which you give him

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