MARYKUTTY JOHN Vs. MARIYAMMA GEORGE

JUDGEMENT

(1.) THE appellant is the 2nd defendant in O.S.No.50 of 2002 of the Sub Court, Mavelikkara, aggrieved by the decree for refund of advance money, confirmed by the I Additional District Court, Mavelikkara in A.S.No.64 of 2008.

(2.) AS per Ext.A1, agreement dated 14.08.2000 the 1st respondent/plaintiff agreed to purchase the property belonging to the appellant and the 2nd respondent/1st defendant. The sale consideration stated in Ext.A1 is Rs.14 lakhs. It is not disputed that at the time of the agreement, appellant and the 2nd respondent received Rupees one lakh by way of advance from the 1st respondent. The sale deed was to be executed by the month of October, 2000. The 1st respondent filed suit for recovery of advance money claiming that she was ready and willing to perform her part of the contract but the appellant and the 2nd respondent were not ready. She expressed her willingness to deduct the loss if any suffered by the appellant and the 2nd respondent on account of non execution of the sale deed.

(3.) SO far as advance money is concerned, it is part of the sale consideration and notwithstanding as to who is at breach, the purchaser is entitled to get back the said amount unless breach was on the part of the purchaser and there is a stipulation for forfeiture in the agreement and it is reasonable. If the purchaser is at fault, it is open to the vendor to adjust the loss if any, suffered by him in the advance money. SO far as earnest money is concerned, it becomes part of the sale consideration only when the document is executed. The earnest money is a deposit made as security for due performance of the contract and if the purchaser is at fault, the earnest money will stand forfeited in accordance with the terms and conditions of the contract.