GIAN CHAND versus GOPALA AND ORS.

GIAN CHAND versus GOPALA AND ORS.

The contract between the parties was a contingent contract rendered impossible by the publication of land acquisition notifications and declaration; hence, the agreement stands frustrated and the vendee is entitled to the refund of earnest money irrespective of his readiness and willingness to perform the contract.

Parties
Appellant: Gian Chand; Respondents: Gopala and Ors.
Jurisdiction
India
Judgment Date
18 January 1995
Procedural Posture
Civil Appeal / Appeal by Special Leave From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Contingent Contracts, Frustration of Contract, Refund of Earnest Money, Land Acquisition
Contract Law Property Law Contingent Contracts Frustration of Contract Refund of Earnest Money Land Acquisition

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 2 Authorities cited 2 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Gian Chand

Appellant

Gopala and Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal by Special Leave From High Court Judgment

Legal Issues

  1. 1 Whether the appellant is entitled to a refund of earnest money under a contingent contract when land was acquired by the government after entering into the agreement.

Ratio Decidendi

The contract between the parties was a contingent contract rendered impossible by the publication of land acquisition notifications and declaration; hence, the agreement stands frustrated and the vendee is entitled to the refund of earnest money irrespective of his readiness and willingness to perform the contract.

Court Disposition

Appeal allowed

Orders

  • Decree of the High Court and District Judge set aside
  • Decree of the Trial Court for refund of earnest money restored