JUDGMENT

HANSARIA, J. :—The short point which needs to be decided in these appeals is whether the High Court of Delhi was justified in directing the appellant to refund the earnest money deposited by the respondents following allotment of land to them at the cost of Rs. 975/- per sq. mtr., which cost subsequently came to be enhanced to Rs. 1650.65, because of which the respondents refused to finally accept the allotment.

2. The aforesaid question arises on these facts. The appellant proposed to allot land to about 260 Co-operative Group Housing Societies in Dwaraka Phase-1, so also to about 60 such societies in Narela. When the proposal was first made on 1-10-90, the cost was fixed at Rs. 875/- per sq. Mtr. For Dwaraka land and Rs. 950/- for Narela land. The societies interested in the allotment of land were required to deposit Rs. 5 lakhs as earnest money and to formally apply for allotment. On the interested Societies accepting the offer, formal allotment was made by communication of the appellant dated 25-1-91. Before possession of the land came to be delivered, the appellant by its communication dated 3-11-92 stated that the premium of the land shall be payable at Rs. 1650.65/-