RAJENDRA KUMAR Vs. KAMLA DEVI

JUDGEMENT

(1.) THIS appeal is preferred against the judgment and decree dated 7.2.1996 passed by II Additional District Judge of Vidisha decreeing the suit of the plaintiff -respondents for recovery of the earnest money paid in pursuance of the agreement for sale with interest pendente lite and future at the rate of 6 per cent per annum as limited u/s 34 of the Code of Civil Procedure.

(2.) THE admitted facts are that an agreement for sale was entered into between the parties on 26.7.1986 and the plaintiffs -respondents had paid the earnest money of Rs. 35,407/ -. The total consideration agreed was. Rs. 50,000/ -. When the sale -deed could not be executed within the specified time, the plaintiffs had given a notice on 31.8.1986. In spites of the notice, the sale -deed could not be executed and the plaintiffs filed a suit for specific performance of the contract or in the alternative for recovery of the earnest money paid.

(3.) THE agreement was in two parts. In pursuance of the first part of the agreement, one sale -deed was executed as admitted between the parties. The sale -deed for the second part could not be executed and only for that part when the earnest money of Rs. 28,000/ - remained lying with the defendant and was not returned, the suit was filed.