COL. IQBAL SINGH Vs. MADAN PAL

JUDGEMENT

(1.) The Regular Second Appeal in the States of Punjab, Haryana and Union Territory, Chandigarh, is governed by Sec. 41 of the Punjab Courts Act, 1918 and not by Sec. 100 of the Code of Civil Procedure, 1908, as held by a five Judge Bench of the Supreme Court in Pankajakshi (Dead)JhroughLRsV.ChandrikaandOhers3J2016)6SCC15Z..

(2.) The following substantial question of law arises for adjudication in the present case. If the Court comes to a conclusion that the proposed purchaser/vendee, in the agreement to sell for immovable property, has committed a default in performing his part of the terms of the contract, then, whether a decree for refund of the earnest money is required to be passsed?.

(3.) These two cross-appeals have been filed by the plaintiffs as well as the defendants. The parties shall be referred to by their status in the suit. Both the Courts, while refusing to grant the relief of specific performance of the agreement to sell, have ordered the refund of the earnest money along with interest. The plaintiffs claim relief of specific performance of the agreement to sell, whereas, the defendants (owners) claim that the judgments passed by the Courts directing them to refund the amount of earnest money along with interest are not in accordance with the settled law.