ORDER

1. This appeal by special leave arises from the judgment of the Division Bench of the High Court of Madras dated 3-11-1983 made in Appeal No. 911 of 1977. The appellant-plaintiff had entered into an agreement with respondents on 23-8-1972 to purchase their 6 acres 76 cents of the land situated in Bhavani Village for a consideration of Rs 2,75,000 and paid Rs 50,000 as earnest money (stated as advance in the agreement). He undertook to have the sale deed registered within six months i.e. on/or before 23-2-1973. Time is, thereby, the essence of the agreement. The appellant had taken possession of the land and levelled the land and applied for permission for sanction of layout. The Gram Panchayat, Bhavani, refused to grant sanction. Thereafter, the appellant got issued a notice on 20-2-1973, calling upon the respondents to return the earnest money of Rs 50,000 and also Rs 15,000 said to be the expenditure incurred by them towards development which liability was denied by the respondents in their reply notice wherein they also claimed to have forfeited the earnest money for default committed by the appellant in the performance of his part of the agreement. The appellant laid OS No