The court emphasized equity in granting refunds even when agreements stipulate forfeiture, especially when substantial time has elapsed since payment.

ORDER :

Leave granted.

2. The notice was issued by this Court on 15th September, 2017 limited to the refund of sum of Rs. 40,14,500/- (Rupees Forty Lakhs Fourteen Thousand and Five Hundred) which amount the appellant alleged to have paid to the owner at the time of execution of the agreement to sale in the year 2006.

3. It is admitted position that subsequent to the agreement to sell and much later respondent nos. 2 to 6-the original owners, had transferred the land, in question, in favour of respondent no. 1 for an amount of Rs. 25 Crores. The suit of the appellant was rejected under Order 7 Rule 11 of the CPC on the ground that no cause of action had accrued and as such no relief can be granted in the suit. It was only for the refund of the amount that this Court entertained the petition(now appeal) at the time of admission.

4. Although, learned counsel for the appellant submits that he had paid an amount of Rs. 40,14,500/- (Rupees Forty Lakhs Fourteen Thousand and Five Hundred) as an advance money, however, learned counsel for respondent nos. 2 to 6 dispute the said amount and submits that two cheques given by the appellant had actually been returned due to insufficient funds in the account. However, he admits an amount of Rs. 23 lakhs and odd was received by respondent nos. 2 to 6 in the year 2006. He further submits that under the agreement to sell if the appellant fails to get the sale deed executed as per the terms of agreement, the amount received by respondent nos. 2 to 6 would stand forfeited and therefore he submits that respondent nos. 2 to 6 are not liable to pay any amount to the appellant.

5. Considering the facts and circumstances of the case, we feel that whatever be the terms and conditions, it would be equitable and in the interest of justice that the appellant would be entitled to receive the advance amount paid by him along with some interest as the said amount had remained with respondent nos. 2 to 6 for a substantial time of about 18 years.

6. Considering further that there is no dispute with regard to the amount actually received by respondent nos. 2 to 6, we feel that in the interest of justice it would be just and proper that respondent nos. 2 to 6 refund a total amount of Rs. 40,00,000/- (Rupees Forty Lakhs) to the appellant within a period of eight weeks.

7. To the above extent, the appeal is allowed and the impugned order shall stand modified accordingly.

8. Pending application(s), if any, shall stand disposed of.