Byte-Sized Law

  Can a Bank Debit Money from Another Account to Recover Loan Dues? If you have a loan with a bank and maintain another account with the same bank, you may wonder whether the bank can adjust money lying in that account against your outstanding loan . The answer is not an unconditional yes . The bank's ability to exercise a right of lien or set-off can depend on the contractual terms, the nature of the accounts, the capacity in which the accounts are held and the circumstances of the particular debt. What is banker's lien or set-off? A bank may, in appropriate circumstances, have rights to retain or adjust funds standing to the customer's credit against amounts legally due to the bank. The RBI has recognised that banks can have a right of lien under Section 171 of the Indian Contract Act, 1872. However, RBI material also records that a bank cannot simply exercise lien over a customer's personal account for dues in another account where the customer is acting in a di...

  What Documents Should a Homebuyer Preserve Before Filing a RERA Complaint? Planning to file a RERA complaint against a builder or promoter? Before starting the process, organise your documents carefully. Under Section 31 of the Real Estate (Regulation and Development) Act, 2016, an aggrieved person can file a complaint concerning a violation or contravention of the Act, rules or regulations. The applicable form, procedure and fee are prescribed by the relevant rules. The documents should help establish what was promised, what you paid, what the builder was required to do and what actually happened . 1. Booking and allotment documents Preserve copies of: Booking/application form Allotment letter Booking receipt Payment plan Unit or plot details Any initial offer or confirmation issued by the promoter These documents can help establish the original transaction and the terms on which the booking was made. 2. Agreement for Sale The Agreement for Sale is often o...

  Can a Homebuyer Complain to RERA for Delay in Possession? Yes. Where a registered real estate project is delayed beyond the possession date agreed with the allottee, RERA can provide an important legal remedy . The exact relief depends on the agreement, the project status, the extent of delay and whether the buyer wants to continue with the property or withdraw. What does RERA provide for delayed possession? Section 18(1) of the Real Estate (Regulation and Development) Act, 2016 addresses situations where a promoter fails to complete or is unable to give possession in accordance with the Agreement for Sale or by the date specified in it. There are broadly two situations: If the homebuyer wants to withdraw: The allottee can, subject to the statutory requirements, seek return of the amount paid, together with applicable interest and compensation in the manner provided under RERA. If the homebuyer wants to continue: The proviso to Section 18(1) provides for interest for ev...

  Builder Changed the Promised Layout After Booking? Know Your Possible Remedies Booked a flat or plot based on a particular project layout, amenities or location of common facilities, and later discovered that the builder has materially changed the plan? The first step is to compare what was promised at the time of booking with what has actually been sanctioned, constructed or proposed later . Under the Real Estate (Regulation and Development) Act, 2016 (RERA), the sanctioned plans and project specifications are important. Section 14 places obligations on the promoter concerning adherence to sanctioned plans and specifications, subject to the modifications permitted by the Act and applicable rules. The precise position can also depend on the nature of the proposed alteration and the relevant approvals. Start with the documents Collect and preserve: Booking/application form Allotment letter Agreement for Sale Sanctioned project plan Layout and site plans Brochures ...

  Can a Buyer Cancel a Property Booking and Recover the Booking Amount? Booked a flat, plot or other property and now want to cancel the transaction? Whether you can recover the property booking amount depends on why the booking is being cancelled, what the booking form or agreement says, how much has been paid, and whether the promoter or buyer is responsible for the cancellation. First, check the booking documents Before requesting a refund, examine: Booking/application form Allotment letter Agreement for Sale, if executed Payment receipts and bank records Cancellation and forfeiture clauses Correspondence with the builder or seller Project advertisements and representations Any promised possession or construction schedule The exact wording can matter. A clause describing an amount as “non-refundable” or permitting forfeiture does not necessarily answer every legal question; its enforceability may depend on the circumstances and applicable law. What if the...

  What Happens If a Seller Agrees to Sell the Same Property to Two Different Buyers? Discovering that a seller has already agreed to sell the same property to someone else can create a serious property dispute . The legal position depends heavily on the chronology: when each agreement was executed, whether either transaction was completed, whether documents were registered, and what each purchaser knew about the earlier transaction. First, establish the complete transaction history Before taking action, collect and compare: Both agreements to sell or other transaction documents Dates of execution and payment Receipts and bank-transfer records Registered sale deed, if any Encumbrance and registration records Property title documents Possession-related documents Correspondence and communications with the seller Evidence showing whether the later purchaser knew about the earlier agreement The chronology of transactions can be crucial . Section 48 of the Transf...

  Writ Petition vs Appeal Against a Government Order: What Is the Difference? If a government authority passes an order against you, the next question is often: “Should I file an appeal under the statute, or approach the High Court through a writ petition?” These are different legal remedies. The appropriate proceeding depends on the law under which the order was passed, the remedy provided by that law, the nature of the challenge and the circumstances of the case . What is a statutory appeal? A statutory appeal is a remedy specifically created by legislation. If the governing Act provides that an order can be appealed before a particular appellate authority or tribunal, the appeal generally has to be filed according to that statutory procedure. An appeal may allow the appellate forum to examine the legality and, depending on the statute, the factual and evidentiary aspects of the original decision. The limitation period, appellate forum, grounds and scope of the appeal will ...

  Can You Approach the High Court if a Statutory Authority Exceeds Its Legal Powers? If a statutory authority takes an action beyond the powers given to it by law , judicial review by the High Court may become relevant. Article 226 of the Constitution gives High Courts wide powers to issue appropriate writs, orders and directions, including in cases involving unlawful exercise of statutory power. The important question is not simply whether an authority's decision is unfavourable. The issue may be whether the authority has acted without jurisdiction, beyond the limits of its statutory power, contrary to mandatory legal requirements, or in breach of principles of natural justice . What does “exceeds jurisdiction” mean? A statutory authority must generally act within the powers conferred upon it by the legislation governing its functions. A potential jurisdictional challenge may arise where an authority: exercises a power that the statute does not confer; acts beyond the li...

  Received a Legal Notice Containing Incorrect Facts? What Should You Do? Receiving a legal notice containing allegations that you believe are incorrect can be unsettling. But do not ignore the notice or respond impulsively . The first step is to separate the allegations from the facts and verify what can actually be supported by documents. A legal notice is generally a communication asserting a legal grievance or demand. Its allegations are not automatically established merely because they appear in the notice. If the matter later reaches court, the parties may have to establish their respective factual and legal positions through pleadings and evidence. Start by checking every allegation Read the notice paragraph by paragraph. Make a separate note of: facts that are correct; facts that are partly correct; facts that are completely disputed; allegations for which you have documentary evidence; and statements that require clarification. Do not simply describe the e...

  When Should a Legal Notice Be Sent Before Filing a Civil Case? Received a dispute over money, property, contract, possession or another civil right? A common question is: “Should I send a legal notice before filing the civil suit?” The answer depends on the nature of the dispute. A legal notice is not automatically mandatory before every civil suit , but in many situations it can be practically useful. In some categories of cases, however, a statutory notice or pre-litigation process may be required. When can a legal notice be useful? A pre-litigation legal notice may be appropriate when you want to formally communicate: the existence of a legal grievance; the facts giving rise to the dispute; the contractual or legal obligation allegedly breached; the relief being requested; and a reasonable opportunity to resolve the matter before litigation. For example, in a money recovery dispute , the notice may demand payment. In a property dispute, it may call upon the re...

  Can an NRI Execute a Property Transaction in India Through a Power of Attorney? Yes. An NRI can generally authorise a person in India through a Power of Attorney (POA) to handle specified property-related acts , such as appearing before authorities, managing documentation or, where properly authorised, executing and presenting documents connected with a property transaction. However, an NRI property POA should not be treated as a simple authorisation letter. Its execution, authentication, stamping, registration and precise powers granted can affect whether it is accepted for the intended transaction. How does an NRI execute a POA from abroad? Section 33 of the Registration Act, 1908 specifically provides for recognition of a Power of Attorney where the principal resides outside India. Among the recognised methods is execution and authentication before a Notary Public, Court, Judge, Magistrate, Indian Consul or Vice-Consul, or specified representative of the Central Governmen...

  What Documents Are Needed for a Motor Accident Compensation Claim in India? After a road accident, collecting the right documents can make a significant difference when pursuing compensation. A Motor Accident Claims Tribunal (MACT) claim may involve questions about the accident, injuries, treatment, income, disability and the vehicles involved. The exact documents required can vary according to the facts and procedural requirements of the case. Under Section 166 of the Motor Vehicles Act, 1988, compensation claims can be presented before the Claims Tribunal having the relevant jurisdiction, and the Tribunal can conduct an inquiry and require production of documents and evidence. 1. Accident and police records Keep copies of documents relating to the accident, such as: FIR, where registered Police complaint or accident report Site plan, if available MLC or medico-legal report Charge-sheet/final report, where applicable Photographs or videos of the accident scene ...