HARBANS LAL Vs. DAULAT RAM

JUDGEMENT

(1.) THIS appeal arises out of a suit filed under Order xxxvII of the CPC representing twice the amount of earnest money paid by the plaintiff on an agreement to sell and interest due thereon. The trial court has, while dismissing the suit, held that refund of the earnest money paid pursuant to an agreement to sell could not be claimed in a suit filed under Order xxxvII of the CPC having regard to the provisions of Section 22 of the Specific Relief Act.

(2.) THE plaintiff -appellant before us appears to have entered into an agreement to purchase property bearing No. E -400, Raghubir Nagar, New Delhi and paid a sum of Rs. 50,000/ - towards earnest money to the seller of the said property. A Receipt -cum -Agreement dated 04th July, 1993 executed between the parties stipulated the terms and conditions subject to which the transaction had to be completed. For the sake of easy reference, the said terms and conditions may be gainfully extracted:

(3.) IT was in the above backdrop that the plaintiff claimed twice the amount of earnest money paid by him to the defendant in a notice dated 11th March, 1996 followed by a reminder dated 10th May, 1996 which the defendant received but to no effect. A suit for recovery of a sum of Rs. 1,51,000/ - representing the principal amount of Rs. 1,00,000/ - and interest on the same calculated @ 18% per annum up to the date of the suit was Therefore filed by the plaintiff under Order xxxvII of the CPC.