2 DD payments cancelled due to banks error. Can seller cancel registry


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?

Answers (3)


100 votes

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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164 votes

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.

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211 votes

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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