NRIBHAY ESTATES P. LTD. Vs. DLF UNIVERSAL LTD.

JUDGEMENT

(1.) THE present three appeals have been filed by the appellants against the common judgment dated 15th January, 2005 passed by the Additional District Judge, Delhi vide which he has dismissed their three suits for recovery of money filed against the respondents herein.

(2.) THE appellants/plaintiffs filed three suits against M/s DLF Universal Ltd., respondent herein, alleging that they had booked two plots and one Villa for purchase from the respondent -defendant by depositing 20% of the sale price. The balance sale consideration was payable in installments. In the agreements executed between the parties there was a clause that 20% of the sale consideration was to be 'earnest money' which was liable to be forfeited in case of breach of the terms of the contract by the appellant -plaintiff. The respondent -defendant claimed that the appellant -plaintiff had committed default in payment of the due installments and so it cancelled the contract and forfeited the amount of 20% of the sale consideration amount out of the amount paid by the appellant -defendant from time to time and returned the balance amount to the appellant -plaintiff. The appellant -plaintiff claimed the amount of money forfeited by the respondent -defendant and since it did not get it, suits for recovery were filed. The plaintiff claimed that forfeiture was illegal as the amount forfeited was not paid to the defendant as earnest money even though that was described in the agreement as such. It was also claimed that the clause of forfeiture of the earnest money was in any way oppressive, illegal, against public policy and unenforceable.

(3.) ON the pleadings of the parties following issues were framed by the learned trial Court: