Breach of contract and failure to fulfill the terms of a Memorandum of Understanding can lead to liability for refund of advance amount along with interest.

JUDGMENT

Krishna Rao, J. - Plaintiffs have filed the instant suit praying for a decree against the defendant for a sum of Rs. 85,10,356.16/-, Rs. 50,00,00/- for the loss and damages and interest pendent lite and interest upon judgment @ 12% per annum on the total sum of Rs. 85,10,356.16/-. The defendant inspite of service of writ of summons has not entered into appearance and accordingly the instant suit proceeded as undefended suit against the defendant.

2. The plaintiffs to set up a project were in requirement of land to the extent of 84 acres on National Highway No. 6 near Dankuni in Jaikrishnapur Mouza. After knowing the intention of the plaintiffs to set up the project, the defendant had approached the plaintiffs and expressed his interest in facilitating the procurement of 84 acres of land to the plaintiffs for the purpose of their project. On being satisfied with regard to the fact that the defendant is acting as a land broker in the concern area had entered into a Memorandum of Understanding on 16.11.2017 with the defendant wherein the defendant had agreed to facilitate the procurement of 84 acres of agricultural land for the purpose of the project of the plaintiffs. It was agreed between the plaintiffs and the defendant that about 20 acres of land shall be at a price of Rs. 25 lakhs per bigha and about 64 acres of land shall be at a price of 13.75 lakhs per bigha. On the date of execution of Memorandum of Understanding, the plaintiffs have paid Rs. 10,89,000/- as an advance to the defendant vide Cheque No. 786807 dt. 16.11.2017 of Axis Bank Limited by deducting an amount of Rs. 11,000/- as TDS being the total amount of Rs. 11,00,000/-. On 02.12.2017, the plaintiffs have transferred an amount of Rs. 49,50,000/- on deducting Rs. 50,000/- as TDS being total amount of Rs. 50,00,000/- in the account of the defendant and accordingly the defendant had acknowledged the receipt of both the amounts. Even after receipt of the advance amount of Rs. 61 lakhs, the defendant failed to register deed in favour of the plaintiffs in terms of the Memorandum of Understanding. On 19.05.2019, the plaintiffs have sent a notice to the defendant calling upon the defendant for the refund of the amount of Rs. 61 lakhs along with interest within 7 days from the date of receipt of the notice. On receipt of the notice, the defendant had sent a reply on 04.09.2019 admitting that he has received the total amount of Rs. 61 lakhs but he will refund the said amount in installments within March, 2020 and the defendant had also issued six (6) nos. of cheques in favour of the plaintiff no. 2. Inspite of the undertaking made by the defendant, the defendant failed to return the amount of Rs. 61 lakhs to the plaintiffs and accordingly again on 13.07.2020, the plaintiffs have sent a legal notice to the defendant calling upon the defendant to refund the amount of Rs. 61 lakhs along with interest @ 12% within 7 days from the date of receipt of the notice. On 10.09.2009, the defendant had sent a reply by admitting the claim of the plaintiffs and requested time for refund of the said amount till the month of December, 2020. As the defendant has not paid the said amount till the month of December, 2020, again the plaintiffs have sent a notice to the defendant informing the defendant that defendant has not paid the said amount and accordingly the plaintiffs will present the cheques issued by the defendant for encashment. The plaintiffs have presented the cheques in the bank for encashment but the said cheques were dishonoured on 10.03.2021 out of which one cheque was dishonoured for the reason 'fund insufficient' and other five cheques have been dishonoured with the endorsement 'exceeds arrangement'. After the dishonour of the said cheques, the Counsel for the plaintiffs had sent a legal notice to the defenant on 23.03.2021 calling upon the defendant for payment of the amount along with interest and damages failing which the plaintiffs will initiate appropriate legal