Asked March 18, 2017

Sales person not refunding the money

  • 2 Answers

We bought underconstruction flat (till 2017 possesion) from the Sales agent of the Builders we made all the deals and was paying the initial 15% for the registration of flat but in installments as Sales agent also agreed over this by the time we paid Rs. 4 Lacs to him last year and in September we decided to drop the flat deal cause of some personal reason, we asked the Sales agent to cancel the deal and do the formalities accordingly but he only made excuses and took 5 months delay by saying that "I will come to you by next week", after that we went to the company office by our own and caught him there redhanded and as he showed us the cancel form then which state 40 days refund time from the aplication, we asked he must have come earlier but he gave excuses he took delay advantage of almost 6 Months well on 17th Feb we finally signed the Document and then he assured us that he will make the refund earlier then mentioned but he again did fraud and now denying and saying that will give after 40 days (soon after 9 Days this limit will also end) only. Secondly when we ask the Company Reception to give us the Higher Authority Contact detials (Manager Sales/Manager Business Dev) or the Sales person denying to give contacts just cause of this fear that this will expose the Sales person. Only papers we have is the Agreement which is as per the Sales Person is KYC form(nothing else is given from his side and since we paid in cheques we have details of those but no bills/ payemt slips) and the Prospectus along with some detailed loose sheets and for the cancellation the person is charging us 15% of the amount and Service Tax of 4.2% which makes no sense to me (as the flat is within the limit of 2000 sq ft and mentioned in the papers is 3.5% Service Tax). To make things right I approached for the company's mail but no reply was from their side so in this situation what are the steps we can take as we had a loss of 6 months delay from the sales person side along with 19.2% deduct amount and still not sure that he will make no delay further.

Answers 2


This can be handled through lauching a cheating complaint and filing a complaint before consumer court. It is a sheer negligence, deception and unfair trade practice where law can be set in motion as aforesaid.

Appreciate your feedback to my answer.




Agree Comment 0 Agrees over 4 years ago



Dear Sir/madam,

The first and the foremost step that could been taken is, sending him/her a Legal notice via an advocate. This Legal notice should explicitly contain your decision of cancellation with the reason of doing so and the details of when and how does the Cause of action arose + the legal consequences/repercussions of not performing their professional obligations thereby responding to you with an immediate effect.

Secondly, go through the agreement thoroughly in order to check for any such condition regarding the refunding of money, back to the customer at the time of such a cancellation. And what shall be the time frame to it, mutually agreed by both the parties to the agreement. If there is such a stipulation in the agreement then you need to understand one thing that you signed it, knowing the legal consequences of such a violation.

The legal action that needs to be taken against him/her if he/she does not agree to settle it mutually (as stated in the legal notice) is two folds. You can get alternate remedy in two different courts :-

  • By approaching the district consumer forum and filing a complaint before it.
  • By filing a civil suit for Rescission of Contract.
  • Consumer Complaint –

    Section 12 of the Consumer Protection Act, 1986 explains in detail the Manner in which complaint shall be made. For filing a case before the consumer forum, you can do it yourself – in person. Hiring an advocate is not compulsory.

    Rescission of Contract – 

    • Section 30 of the Specific Relief Act which mentions Court may require parties rescinding to do equity – it seeks to restore the benefit which the other party may have received.
    • Section 62 in The Indian Contract Act, 1872 – Effect of novation, rescission, and alteration of contract[1].
    • Section 75 in The Indian Contract Act, 1872 – Party rightfully rescinding contract, entitled to compensation[2]

    The above sections suggest the conditions attached to the rescission of a contract on the non-fulfilment of the contract.

    Incase you are facing any difficulty pursuing the above advice or want any help in filing the case. Please follow the link below

    [1] If the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract need not be performed.

    [2] A person who rightfully rescinds a contract is entitled to compensation for any damage which he has sustained through the non-fulfilment of the contract.

    Agree Comment 0 Agrees over 4 years ago

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