ANITA CHAUDHRY, J.

1. This is the second appeal by the defendant against the judgment of both the Courts below.

2. For the sake of brevity few facts are necessary.

3. The appellant was issued a letter of intent Ex.P3/A for allotment of a residential plot measuring 500 square yards in SAS Nagar on 30.03.2001. The defendant entered into an agreement with the plaintiff to sell his interest in the property on 08.01.2004. There is a recital in the agreement that the allotment letter was yet to be issued but the property was free from all sorts of encumbrances, litigation, claims, transfer etc. The total amount payable was Rs.4,40,000/- out of which Rs.1,87,500/- was already paid to PUDA. A sum of Rs.1 lac was paid as earnest money. It was agreed that the last date for completion of the bargain and for final payment and execution and registration of the GPA, SPA, agreement, Will was fixed for 08.03.2004. It is not in dispute now that PUDA (the allottee) had already cancelled the letter of intent on 02.12.2003. This fact was not disclosed in the agreement by the defendant. The plaintiff along with the balance amount went to the office of the Sub-Registrar for execution of the docum