Demanding that a seller repay the earnest money paid for a property sale that has not gone ahead.
Date: 3 April 2026
TO:
Suresh Kumar
SCO 42, Sector 34-A, Chandigarh 160022
And also at: X
FROM:
Ramesh Kumar
House No. 214, Sector 15-A, Chandigarh 160015
Phone: 98765 43210
Email: ramesh.kumar@example.com
SUBJECT: Demand for return of bayana of ₹5,00,000 (Rupees Five Lakh only) paid on 2 April 2026 for House No. 1234, Sector 21-C, Chandigarh, measuring 10 marla
Dear Sir / Madam,
1.1 On 2 April 2026 the Sender paid ₹5,00,000 (Rupees Five Lakh only) to the Recipient by cheque no. 004512 drawn on State Bank of India as bayana (earnest money) towards the purchase of House No. 1234, Sector 21-C, Chandigarh, measuring 10 marla (the Property), under the agreement dated 1 April 2026 (the Agreement).
2.1 The sale has not gone ahead because the Recipient has refused or failed to sign the sale deed.
2.2 The Recipient was asked on 3 July and 15 July 2026 to fix a date for the sale deed and did not respond. On 28 July 2026 the Recipient said the Property had been sold to another buyer.
2.3 The Sender is not in breach of the Agreement and is not responsible for the sale failing.
3.1 The Sender calls upon the Recipient to repay ₹5,00,000 (Rupees Five Lakh only) to the Sender, by account payee cheque or bank transfer, within 15 days of receipt of this notice.
3.2 The Sender also claims interest on that sum at 12 per cent a year from 2 April 2026 until it is repaid.
3.3 The Recipient has no right to keep the money. Even where an agreement allows bayana to be forfeited, the law allows a party to keep no more than reasonable compensation for loss actually caused (Section 74, Indian Contract Act, 1872), and the Sender is not the party in default.
4.1 If the money is not repaid within that time, the Sender will file a civil suit against the Recipient for recovery of ₹5,00,000 (Rupees Five Lakh only) with interest and costs, and will claim any other relief the Agreement and the law allow.
4.2 Nothing in this notice, and no part-payment accepted by the Sender, waives any right or remedy of the Sender.
5.1 This notice is served by registered post with acknowledgement due. A notice properly addressed, pre-paid and posted is presumed to have been served in the ordinary course of post (Section 27, General Clauses Act, 1897). Refusal to accept delivery will be treated as service.
This notice is issued through Simran Kaur, Advocate, of Chamber No. 88, District Courts, Sector 43, Chandigarh. A reply may be sent to the Advocate as well as to the Sender.