The main legal point established in the judgment is that in the absence of a clause to forfeit amounts in the agreement, the court may allow a suit for a refund of the amounts paid by the Plaintiff without granting interest.

Prathiba M. Singh, J.

I.A. 24025/2015 (u/O XII Rule 6 CPC) in CS (OS) 3844/2014

1. The present application has been filed by the Plaintiff seeking a decree on admissions. The Plaintiff relies on admissions by the Defendants that they have received a sum of Rs.2.40 crores as earnest money, along with Rs.13 Lakhs, which the Plaintiff incurred as expenses and charges deposited to the DDA.

2. The brief background of the present suit is that the Plaintiff and Defendants Nos.1 to 3 entered into an agreement to sell dated 1st January, 2012 by which the Defendants agreed to sell to the Plaintiff, property bearing No.C-92, Surajmal Vihar, Delhi-110092 (‘suit property’). The salient terms and conditions of the said agreement are as under:-

“AND WHEREAS the First party has agreed to sell, transfer and convey his rights, title, interest and liens in the said property in the land there-under, unto the Second Party for a total consideration of Rupees 10,72,00,000/- (Rupees Ten Crore Seventy Two lakhs Only) AND WHEREAS the second Party has agreed to purchase acquire and possess the said property from the First Party free from all encumbrances on the following agreed terms and conditions of this Agreement.

NOW THIS AGREEMENT WITNESSETH AS UNDER

1. That the First Party has agreed to sell and the Second party has agreed to purchase the said property, and with all rights, interests, liens and titles of the First Party for the above said consideration, being the earnest money for the sale of the said property, A sum of Rs.1,20,00,000/- (Rupees One crore and twenty lakhs only) in cash is being paid at the time of signing of this Agreement. And the Second party shall pay the balance consideration amount to the first party as under:-

i. Rupees 1,20,00,000/- (Rupees One crore and twenty lakhs only) will be paid after 75 days of signing of this agreement or getting the time extension from DDA, whichever is later.

ii. Balance consideration amount will be paid after 6 months of signing of this agreement or after 45 days of getting the said property freehold form concerned authority, whichever is later.

2. That the First Party on the receipt of the earnest money amount as aforesaid will simultaneously hand over the vacant physical possession of the said Property to the Second Party and that the Second party will Thereafter be fully entitled to use the same for getting the plot constructed as per the minimum requirement of DDA/MCD/concerned authority etc. etc. to get the above said property freehold.

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6. That all the expenses on the transfer of the said property i.e. stamp duty, court fees, registration charges etc. shall be borne and paid by the second party, along with all the dues and demand i.e. society dues, House Tax, Water and Electricity charges, Time Extension Charges and Freehold charges etc. up to the date of execution of the sale deed shall be borne by the Second Party or his/her nominee.”

As per the above agreement, the total consideration for the property was Rs. 10,72,00,000/- (Rupees ten crores and seventy two lakhs only). An amount of Rs.1.2 crores was given as earnest money at the time when the agreement was signed and another Rs.1.2 crores was to be given 75 days after signing of the agreement or till the time extension from DDA was granted. The balance consideration was to be paid 45 days after getting the property converted to freehold. The Defendant was to hand over the vacant physical possession of the property to the Plaintiff on receiving the earnest money. The Defendants have assured the Plaintiff that the property is not burdened with any mortgages, legal proceedings, etc. The Defendant was bound to execute the sale deed in favour of the Plaintiff at the time of receiving the balance consideration, all documents relating to the said property was to be handed over to the Plaintiff after full and final payment. All expenses in relation to the transfer of the property i.e. stamp duty, court fee, etc. and all the dues and