DEEPA TRADE AND COMMERCE LTD Vs. RAJ BHALLA

JUDGEMENT

(1.) TWO suits, seeking specific performance of four oral agreements dated 17.09.1988 (three agreements being the subject matter of CS(OS) No.2860/1991 and the fourth being the subject matter of CS(OS) No.2861/1991), in respect of the first and the second floor of property bearing No.5 Babar Road, New Delhi have been decided vide impugned decree, holding that the evidence establishes the defence that no concluded contract between the parties came into existence. The sum of Rs.1 lakh received by the defendant pertaining to the discussions held, which would have fructified into four agreements, has been decreed in favour of the two plaintiffs together with interest @7% per annum from date of filing of the suit till realization.

(2.) THE plaintiffs are in appeal and a two-fold grievance is raised. Firstly that the learned Single Judge has eschewed a reference to the testimony of the witnesses and thus it is a case where material evidence has been ignored while declining relief prayed for. Second point urged is that the learned Single Judge has ignored the language of the four receipts dated 01.10.1988 executed by the defendant when she received further sum of Rs.25,000/-, in cash pertaining to the three agreements between the parties and Rs.75,000/- received in cash pertaining to the further agreement(s), in which receipts she specifically referred to the sum received by her in continuation of earlier amount paid against earnest money. It is urged that as held in the decision reported as 1996 (4) SCC 249 HUDA & Anr. vs. Kewal Krishan Goel & Ors., earnestwould mean the amount given at the moment when a contract is concluded, for the reason it represents a guarantee that the contract will be fulfilled and if the transaction is carried out, it would form part of the purchase price and if the transaction falls through by reason of the default or failure of the purchaser, the amount would be forfeited. In a nutshell, earnest money is given for the purpose of binding a contract, is the submission made.

(3.) THE two other letters are identically worded, except the cheque number is different.