Law: Specific Relief Act (I of 1877)

Section: 12, 19, 22

Law: Civil Procedure Code (V of 1908)

Section: 115

(a) Specific Relief Act (I of 1877) Ss.12, 19 & 22---Civil Procedure Code (V of 1908), S.115---Suit for recovery of double earnest money---Agreement to sell, breach of---Execution of agreement admitted---Specific clause of agreement stipulating double refund of earnest money upon vendor s default---Effect---Vendee seeking double earnest money---Enforcement of specific clause---Scope---The respondents/vendors being owners of suit land had executed an agreement to sell the suit land with the petitioner/ vendee for a total consideration of Rs. 50,00,000/-, receiving Rs. 22,00,000/- as earnest money through cheque acknowledged on the back of the agreement---The agreement stipulated that the sale deed would be executed upon payment of the remaining Rs. 28,00,000/- on 11-05-2005 and that, in case of breach by the sellers, they would return double the earnest money as damages---The petitioner/vendee appeared before the sub-registrar on the due date but the respondents/ vendors failed to appear and later sold the property to third parties---The Trial Court partly decreed the suit for return of Rs. 22,00,000/- only, and the appellate court maintained that decision---The principal issue before the High Court was whether, in light of the admitted agreement containing a clause for double refund on breach, the petitioner was legally entitled to recover the full Rs. 44,00,000/- (double earnest money) as stipulated, instead of only the original earnest money decreed by the courts below ?---Held: The conduct of respondents/ vendors showed that they were never willing to perform their part of the agreement---It was apparent from the available record that respondents/ vendors never made any attempt to perform their part of the agreement rather entered into agreements with other persons and sold the land after receiving sale consideration---Vendors had committed breach and the transaction could not go forward, therefore, they were liable to repay the earnest money to the vendee---In the present case, the agreement to sell was an admitted document containing a specific stipulation that upon breach the vendee shall be entitled to recover double the amount of earnest money paid…