To claim interest on earnest money refunds, a plaintiff must demonstrate readiness and willingness to perform contractual obligations, paralleling the obligations of the other party, with the court exercising discretion to ensure equitable outcomes.

JUDGMENT :

NIDHI GUPTA, J.

CM-4766-C-2024

1. This is an application under Section 151 CPC for placing on record the copy of Agreement to Sell dated 24.07.2008 as Annexure A-1.

Heard.

Application is allowed; and the said document is taken on record as Annexure A-1, subject to all just exceptions. Registry is directed to tag the same at appropriate place.

RSA-3845-2023 (O&M)

The defendants No.1 and 2 are in second appeal against the concurrent judgments and decrees of the learned Courts below, whereby DIVYANSHI the suit of the plaintiff/ respondent no.1 herein, was partly allowed; and direction was issued to appellants/defendants No. 1 and 2, to refund the earnest money of Rs.35 lacs along with interest thereupon at the rate of 9% per annum from the date of filing of the suit till actual realisation of the amount. In the present appeal, the appellants are aggrieved of the impugned judgments and decrees only to the limited extent of imposition of interest @ 9% per annum upon the refund amount of Rs.35 lacs.

2. The brief facts of the case are that the plaintiff had filed a suit seeking specific performance of Agreement to Sell dated 24.07.2008 executed between the parties for total sale, consideration of about ₹1 crore 39 lakhs; with alternative prayer for refund of earnest money of Rs.35 lacs, plus Rs.35 lacs as damages. The suit was resisted by the defendants on various grounds. Replication was filed. On the basis of the pleadings of the parties, the learned trial Court framed the following issues: -

“1. Whether the plaintiff is entitled to specific performance of agreement to sell dated 24.7.2008? OPP

2. Whether plaintiff is entitled for permanent injunction as prayed for? OPP

3. Whether the plaintiff is entitled to alternate relief of recovery of Rs.70 Lacs as prayed for? OPP

4. Whether the suit is not maintainable in the present form?

OPD

5. Whether the plaintiff has no cause of action and locus standi to file the present suit? OPD

6. Whether plaintiff has concealed the true and material facts from the Court? OPD DIVYANSHI

7. Whether the plaintiff is estopped by his her own act and conduct from filing the present suit? OPD

8. Whether the plaintiff has not paid the ad valorem court fee? OPD 9. Relief.”

3. Upon appraisal of the pleadings and the evidence led by the parties, the ld. trial Court had decided issues No. 1 and 2 against the plaintiff and in favour of the defendants; issue No. 3 was partly decided in favour of the plaintiff and against the defendants; issues No. 4 and 5 were decided against the defendants and in favour of the plaintiff; issue No. 6 against the defendants and in favour of the plaintiff; issue No. 7 against the defendants and in favour of the plaintiff; issue No. 8 against the defendants and in favour of the plaintiff. Accordingly, vide judgment and decree dated 28.02.2019 the trial Court had declined relief of specific performance under Section 16 of the Specific Relief Act; however had allowed alternative relief of recovery of earnest money under Section 22 of the Act; and suit of the plaintiff was “partly/alternatively decreed with costs to the effect that plaintiff is entitled to recovery of Rs.35,00,000/- from the defendants No.1 and 2 along with inter