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HARKESH MANUJA
Akash Jain – Appellant
Versus
Rupinder Singh – Respondent
JUDGMENT
Harkesh Manuja, J. (Oral)
By way of present appeal, challenge has been made to the judgments and decrees dated 28.04.2015 and 17.07.2017 passed by the Courts below, whereby, suit for recovery filed at the instance of appellants stands dismissed.
2. Briefly stating the facts of the case are that an agreement to sell came to be executed between the appellants-plaintiffs and the respondent-defendant on 08.02.2006, pertaining to the land situated in village Ghullu Majra, District Patiala with appellants-plaintiffs being the purchasers and the respondent-defendant as the owner. The total amount of sale consideration was Rs.16.60 lacs per acre, out of which, Rs.14 lacs were paid as an earnest money and 15.06.2006 was the last date for the execution of the sale deed.
3. It was further submitted in the plaint that the appellants-plaintiffs visited the office of the Sub-Registrar on the date fixed along with the balance sale consideration, but sale deed could not be executed. Followed by that, the suit for recovery of earnest money with interest was filed with the averments that as per the terms of the agreement, the respondent-defendant could not forfeit the same.
4. On the other h
The court upheld the enforceability of earnest money forfeiture under specific contractual terms, emphasizing the necessity for proof of damages in default situations.
The main legal point established in the judgment is that the failure of one party to perform its obligations under a reciprocal contract precludes that party from claiming performance of the reciproc....
The seller is bound to disclose any material defect in the property or title, and the prospective buyer is entitled to claim a refund of earnest money if the agreement cannot be enforced.
(1) Agreement to Sell – Unless plaintiff specifically seeks refund of earnest money at the time of filing of suit or by way of amendment, no such relief can be granted to him – Prayer clause is a sin....
A plaintiff seeking specific performance must demonstrate readiness and willingness to perform the contract, which was not established in this case.
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