AI Overview...
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Pay Double the Earnest Money - Several sources confirm that in case of breach or failure to perform contractual obligations related to property sale agreements, the defaulting party is liable to pay double the earnest money. For instance, sources Gopal Dass VS Sonu - Punjab and Haryana, Amit Arya VS Kamlesh Kumari - Punjab and Haryana, ASHA ROHILLA VS PARAMPREET SINGH - Delhi, B. W. L. LIMITED VS M. T. N. L. AND OTHER - Delhi, and CHAITANYA KOCHAR VS HARSH SEHGAL - Delhi explicitly mention that failure to execute the sale deed or complete the transaction results in the defendant being liable to pay twice the earnest amount.
Gopal Dass VS Sonu - Punjab and Haryana, Amit Arya VS Kamlesh Kumari - Punjab and Haryana, ASHA ROHILLA VS PARAMPREET SINGH - Delhi, B. W. L. LIMITED VS M. T. N. L. AND OTHER - Delhi, CHAITANYA KOCHAR VS HARSH SEHGAL - Delhi -
Conditions for Forfeiture and Penalty - The stipulation to pay double earnest money serves as a penalty clause for breach, and it is enforceable provided the agreement explicitly states so. Courts have upheld such clauses, emphasizing that the defaulting party cannot gain advantage from their breach and that the payment of double earnest money is a legitimate remedy for non-performance.
Amit Arya VS Kamlesh Kumari - Punjab and Haryana, 01100058958 -
Specific Performance and Refunds - When the seller fails to execute the sale deed or defaults, courts may order the refund of the earnest money with interest or direct the execution of the sale deed. If the breach is attributable to the seller, the buyer is entitled to recover the double earnest amount or seek specific performance, depending on the circumstances.
Eufemia Clara Pereira VS Minguel Luis Gomes - Bombay, ROSHAN LAL VS MANOHAR LAL - Delhi -
Legal Framework and Enforcement - The enforceability of paying double earnest money is supported by contractual clauses and legal provisions, including the Indian Contract Act and relevant case law. Courts have consistently held that such penalty clauses are valid if clearly stipulated in the agreement.
Amit Arya VS Kamlesh Kumari - Punjab and Haryana, ROSHAN LAL VS MANOHAR LAL - Delhi
Analysis and Conclusion:
In property sale agreements, the clause requiring the payment of double the earnest money upon breach is a common contractual penalty upheld by courts. It aims to discourage non-performance and compensate the aggrieved party. The defaulting party's obligation to pay double earnest money is enforceable when explicitly stipulated, and courts tend to favor upholding such contractual terms to ensure compliance. When breach occurs, the injured party can seek either the refund of earnest money with interest or specific performance, with the double earnest penalty serving as a deterrent against default.
Search Results for "Pay the Double of Earnest Amount"
2009 0 Supreme(P&H) 1773 • India - Punjab and Haryana
SABINA
deed, then he was to pay double the amount of earnest money does not lead the inference that the plaintiffs could not seek specific ... the balance sale consideration, then his earnest money would stand forfeited and in case the defendant failed to execute the sale ... part of contract--Merely because in the agreement to sell, it was agreed between the parties that in case the purchaser failed to pay ... It was also agreed between the parties that in case the second party did not #HL_S....
2016 0 Supreme(P&H) 2608 • India - Punjab and Haryana
REKHA MITTAL
double the amount of earnest money cannot be used to gain advantage by the guilty party. ... sell contained a stipulation that in case the proposed vendor failed to execute sale deed by date fixed, he would be liable to pay ... of the amount of earnest money, with interest @ 9% per annum from the date of agreement till realisation of the amount. ... The mere fact that agreement to sell contained a stipulation that in case the proposed vendor failed to execute sale dee....
2018 0 Supreme(Del) 1496 • India - Delhi
PRATHIBA M.SINGH
The Defendants were liable to pay double the amount of earnest money as per the Agreement to Sell. ... The Defendants' silence and failure to communicate the forfeiture of the amount indicated lack of bonafides. ... Agreement to Sell - 1.01.2005 - 35, 36, 18% - The court discussed the Agreement to Sell dated 1st January, 2005, the payment of earnest ... The Agreement to Sell provides that the Defendants would be liable to pay double the amo....
2004 0 Supreme(Bom) 680 • India - Bombay
N.A.BRITTO
It held that the defendants should execute the sale deed with the NOC or refund the amount paid by the plaintiff with interest. ... S.P.D.A. as required to execute the sale deed, and directed the defendants to execute the sale deed with the NOC or refund the amount ... Final Decision: The appeal was allowed, and the defendants were directed to execute the sale deed with the NOC or refund the amount ... Shri Gude has next submitted that this was a case where in terms of Clause 3 of the said agreement, the said defendants could have been or....
2000 0 Supreme(Del) 208 • India - Delhi
VIKRAMAJIT SEN
Arbitration & Conciliation Act, 1996 - Section 11 — Appointment of arbitrator — Failure to appoint the arbitrator despite notice amounts ... The agreement contained a clause that if the purchaser failed to perform his obligation, he Would be liable to pay double the amount of earnest money. It was this amount together with interest which was claimed in the plaint. ... We agree with the Attorney-General that the amount of Rs. 24,000. 00 was not of the nature of #HL_STA....
2000 0 Supreme(Del) 993 • India - Delhi
H.L.NARULA, VINOD SRIVASTAVA
of the amount of earnest money in case of non-performance within 4 months — Suit for specific performance is not maintainable. ... Relief Act, 1963 - Section 16 & 20 — Suit for specific performance of agreement to sell — Agreement itself providing for claim of double ... , he will have to pay double amount of the earnest money under all circumstances. ... OPD (5) Whether the specific performance of the contract cannot be granted in view of the specific stipulation in ....
1998 0 Supreme(Del) 455 • India - Delhi
B.GOEL
And if the seller fails to get the papers executed in the name of the said purchases, or his/their Nominees then the seller shall be liable to pay the amount double the earnest money to the purchaser or his/their nominee s. ... ... ( 8 ) THE learned counsel for the defendant has contended that it was agreed between the parties that in case of breach on the part of the plaintiff, the earnest money will be forfeited whereas the seller is liable to pay an amount #HL_STA....
2009 0 Supreme(HP) 655 • India - Himachal Pradesh
SANJAY KAROL
The court concludes that the suit for recovery of the amount paid as part consideration in a contract for sale, which was improperly ... The defendant failed to construct a path and jeepable road to the land as agreed, and the plaintiff sought a refund of the amount ... ... That if the party of 1st part fail to execute or any default in the conditions of this agreement held liable to pay double amount of earnest money. ... double the earnest #HL_STA....
1999 0 Supreme(Del) 750 • India - Delhi
VIKRAMAJIT SEN
Civil Procedure Code, 1908 - Order 37 — Leave to defend — Claim of amount in terms of contract between the parties — Claim included ... However, in my view there is sufficient substance in the submission of Shri Makhija that even this amount would be liable for forfeiture ... claim of damages to the tune of Rs. 12,00,000/- in an Agreement for purchase of a property valued at Rs. 30,00,000/- where the Earnest ... This Agreement further witnessed that if the Defendant fails to perform his obligations then he would be liable to pay....
2018 0 Supreme(Del) 1511 • India - Delhi
PRATHIBA M.SINGH
The Defendant failed to complete the transaction, leading to the Plaintiff's claim for recovery of double the earnest money. ... The Defendant failed to complete the transaction, leading to the Plaintiff's claim for recovery of double the earnest money. ... to forfeit the amount. ... The Plaintiff claims that one of the terms of the Bayana receipt is that if the Defendant fails to complete the sale transaction, he would be liable to pay double the amount#HL_....
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