K.R. SURESH versus R. POORNIMA & ORS.

K.R. SURESH versus R. POORNIMA & ORS.

The advance amount paid under the ATS was, in substance, earnest money — a guarantee for due performance — and given the explicit forfeiture clause, the four-month time stipulation and the surrounding urgency known to the purchaser, forfeiture by the vendors for the purchaser's breach was lawful; further, refund under Section 22(1)(b) must be specifically claimed (or sought by amendment under the proviso), which the appellant did not do, therefore no refund was warranted and the appeal is dismissed.

Parties
Appellant: K.R. Suresh; Respondent: R. Poornima & Ors.
Jurisdiction
India
Judgment Date
01 May 2025
Procedural Posture
Civil Appeal / Final Judgment on Appeal to the Supreme Court
Outcome
Appeal dismissed
Legal Topics
Specific Performance, Forfeiture of Earnest Money, Refund of Earnest Money Under Section 22, Time Is of the Essence, Amendment of Plaint
Specific Relief Contract Civil Procedure Specific Performance Forfeiture of Earnest Money Refund of Earnest Money Under Section 22 Time Is of the Essence Amendment of Plaint

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Parties

K.R. Suresh

Appellant

R. Poornima & Ors.

Respondent

Procedural Posture

Civil Appeal / Final Judgment on Appeal to the Supreme Court

Legal Issues

  1. 1 Whether the trial court and High Court were correct in dismissing the suit for specific performance and in upholding forfeiture of the advance money
  2. 2 Whether the appellant is entitled to refund of the amount paid as advance/earnest money and whether Section 22 of the Specific Relief Act permits grant of such refund without a specific prayer or amendment

Ratio Decidendi

The advance amount paid under the ATS was, in substance, earnest money — a guarantee for due performance — and given the explicit forfeiture clause, the four-month time stipulation and the surrounding urgency known to the purchaser, forfeiture by the vendors for the purchaser's breach was lawful; further, refund under Section 22(1)(b) must be specifically claimed (or sought by amendment under the proviso), which the appellant did not do, therefore no refund was warranted and the appeal is dismissed.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Parties shall bear their own costs